18.05.2015

Record quarter for Wacker Neuson

Austro-German equipment and telehandler manufacturer Wacker Neuson, has reported strong growth for the first quarter, although a good deal of it is down to exchange rates.

Total revenues for the quarter were up 11.2 percent to €324.3 million, with revenues in Europe - which accounts for 71 percent of group sales - increasing seven percent. The strongest improvement however came from the Americas where sales jumped 24 percent - although most of this was due to the strong dollar and weak Euro - underlying revenues grew by five percent.

Exchange rate movements also bumped up the result from Asia-Pacific region, where revenues were 20 percent higher when translated into Euros – but a more modest six percent higher in local currency terms.

The company is maintaining its full year forecasts.Pre-tax profit for the period jumped 46.6 percent to €30.2 million.

Chief executive Cem Peksaglam said: “We have continued to implement our strategies and they have proved effective even though – from a global perspective – markets are moving in different directions. Our strong market position, above all in Europe and North America, has enabled us to offset negative market developments in South America, Russia and Australia”.

“Our strategy of harnessing and expanding our global sales network to proactively distribute our wheel loaders, telescopic handlers, dumpers and skid steer loaders in specific markets is increasingly paying dividends. At the same time, we are also benefiting from our targeted efforts to diversify into different markets. The fact that we were able to increase revenue from machines for the agricultural industry by 15 percent in the first quarter despite the weak situation in the agricultural machinery sector clearly confirms the effectiveness of our strategy.”

Vertikal Comment

Another solid set of numbers from the Austrian company which has been making progress year on year quarter on quarter, as more buyers appreciate its larger products, such as telehandlers and its distribution network grows.

The weaker Euro is proving a boon to companies like Wacker Neuson, allowing them to become more competitive with what is a premium product, while existing revenues in dollars and sterling etc.. are translating into substantially more Euros. The long term effect though is to boost the company’s market penetration, which should allow it to continue to grow even when the assistance of the exchange rate subsides as it certainly will.

In the short term the company can expect an excellent year in 2015.