Strong start for Wacker Neuson
German compact equipment/Telehandler manufacturer Wacker Neuson has reported a strong start to the year.
First quarter revenues increased 17 percent to €434.6 million, with double digit growth in all three regions. Revenues in Europe, which accounts for around 75 percent of the company’s business – were 18.3 percent higher at €316.7 million with the UK, leading the way, while sales of Weidemann and Kramer telescopic handlers and wheeled loaders improved 42.2 percent.
In the Americas, revenue were 14 percent higher at €104.5 million with significant gains in the USA slightly offset by slower sales in Canada due to tougher emissions legislation, which came into effect in January, dragging sales forward into the fourth quarter.
Revenues in the Asia Pacific region, increased by 21.8 percent to €13.4 million with production at the plant in Pinghu, China, that opened last year, now beginning to ramp up. Major gains occurred in China, while growth in Australia was slower than forecast.
Pre-tax profits were just over 45 percent higher at €29.9 million. The company is forecasting full year revenues of close to €1.8 billion- around 7.5 percent up on last year’s record.
Chief executive Martin Lehner said: “This strong start to the year sees us continue the dynamic pace of growth from the fourth quarter of 2018. Demand for our products and services is high and this has helped us gain market shares in many countries. Throughout the whole of 2018, we had to contend with major bottlenecks in the global supply chain. Although the situation has not been fully resolved, it has improved significantly in 2019. The talks we held at bauma once again confirmed that we are on the right track to consolidate and expand the success of the Wacker Neuson Group in the long term.”
An excellent start from Wacker Neuson, which is ‘on a bit of a roll’ at the moment, with the potential to exceed its forecasts given that it has strong order books, an improving supply chain situation and some interesting new products coming on stream. It would not surprise us at all to see revenues come in closer to €1.9 billion as the company marches towards its first €2 billion year.