Wacker Neuson OK in Europe
Telehandler manufacturer Wacker Neuson has published its first quarter revenues, with Europe holding up, while North America and Asia Pacific nosedived.
Total revenues for the quarter were 5.6 percent lower than this time last year at €410.8 million. North American sales dropped 27 percent to €76.9 million while Asia Pacific plummeted 44 percent to €7.5 million, conversely sales in Europe improved three percent to €326.4 million, thanks in part to the agricultural market. The German speaking region remained positive while sales in Southern Europe, Poland, France and the UK slipped a little.
Compact Equipment which includes telehandlers was seven percent lower at €227.4 million, while Light Equipment sales fell 12 percent to €96.2 million, parts and services revenues however increased nine percent to €90.4 million. Pre-tax profits dropped 44 percent to €16.7 million, although that includes a €10.7 million hit from a steep decline in exchange rates. Without that the drop would have been closer to eight percent. Net debt was marginally higher at €446 million.
Chief executive Martin Lehner said: “Following a successful start to 2020, business contracted sharply towards the end of the first quarter as a result of the coronavirus pandemic. Widespread uncertainty is negatively impacting investment activity among our customers and existing orders are being postponed to an extent.”
This is a fairly decent result from Wacker Neuson although surprising to see how hard it was hit in North America given that the Covid-19 impact was only a fact in March. In Asia Pacific however the business came to a standstill in many places.
As with other companies the second quarter is likely to see far steeper declines, although the company has managed to maintain production to some extent.