Higher sales lower profit for Wacker Neuson
Telehandler and compact equipment manufacturer Wacker Neuson has reported its full year results.
Total revenue for the year was €1.9 billion an improvement of 11 percent on last year, Europe led the way with an 11.5 percent increase to €1.38 billion, Growth in the Americas was 14.5 percent to €459.5 million while Asia Pacific was almost five percent higher at €62.6 million. In terms of operating profits Europe declined almost eight percent to €161.5 while the other two regions reduced their losses but remained in negative territory. Group pre-tax profit for the year declined more than 32 percent to €137.5 million, but last year’s numbers included a one off gain of €54.8 million on the sale of a property business, without that, the decline was just under six percent, this due to higher sales, service and general administrative costs, partly offset by lower interest costs.
In the fourth quarter revenues were just over three percent higher at €483.2 million with a profit of €8.4 million down 67 percent on last year with higher sales in Europe and the Americas offset by a sharp fall in Asia.
The company is forecasting a sharp fall in revenues for 2020, due to slower order intake and the challenges posed by the spread of the Corona virus. It has estimated that full year revenues will range from €1.7 – down 10 percent - to similar levels to this year at €1.9 billion.
Chief executive Martin Lehner said: “Last year, we once again managed to gain shares in many markets – challenging markets included – thanks to our innovative product developments. Strong demand for our products confirms that we are in tune with our customers’ needs and that our services resonate strongly with the market.”
Chief financial officer Wilfried Trepels added: “We are not satisfied with the development of our profit figures. The programme that has now been approved will help improve group profitability sustainably and enable us to achieve the goals set out in our Strategy 2022.”
This is not too bad a set of numbers, the company continues to develop its larger ‘Compact Equipment’ range and reduce its dependence on Europe. Although Europe still generates all of the group profits and more than 72 percent of all revenues. It was interesting to see a telehandler on the company’s stand at Conexpo last week, as one of its larger pieces of equipment it still has a great potential to increase volume in this area, given the reputation its telehandlers have for quality and reliability.
Its forecasts for 2020 suddenly look very realistic, given the current situation.