10.08.2022

Record sales from Wacker Neuson

German telehandler manufacturer Wacker Neuson is achieving record revenues again, the first time since 2019.

First Half
Total revenues in the first half were €1.07 billion up 15.5 percent on the same period last year. Compact equipment, which includes the telehandlers improved 16.8 percent to €628.8 million.

The Geographic breakdown is as follows:
Europe: €826.3 million + 12%
The Americas €202.8 million +28%
Asia Pacific €43.4 million +32%

Pre-tax profit
Pre-tax profit for the six months declined seven percent to €90.2 million, due to supply chain issues disrupting production as well as costs rising faster than they can be passed in the form of price increases. The company expects supply and material issues to continue through the second half.
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Wacker has highlighted ongoing supply chain issues

Second Quarter
Second quarter revenues increased 11.5 percent to €550.9 million a new record, the company says that order intake - already strong - gathered pace in the second quarter and while it does not provide details of the order book, says that it has increased substantially and goes well into next year. Sales in the compact products division increased 8.6 percent to €313 million.

Geographic breakdown
Europe: €414.7 million + 7%
The Americas €112 million +24%
Asia Pacific €24.2 million +48%

Pre-tax profit
Pre-tax profits declined four percent to €51.1 million, while net debt jumped from €79.4 million to €211.1 million, due to higher inventories, including unfinished machines waiting for parts, and higher receivables while maintaining its payment policies.

The company has maintained its full year forecasts at €1.9 to €2.1 billion with an operating margin of nine to 10 percent.

Chief executive Karl Tragl said: “Customer demand for our innovative and reliable products remains consistently strong. Order intake was already at a very high level in the first quarter and this positive momentum accelerated even further in the second quarter. We thus have an order backlog extending well beyond the current fiscal year. However, there are still no signs of improvement in the supply situation, and material, energy and shipping costs remain high – all of which has a negative impact on our profitability. On the other hand, we do expect our price increases to have a positive impact on gross margin from the third quarter onwards.”

Vertikal Comment

This is another excellent set of numbers from Wacker Neuson, with strong progress on the sales side, with relatively benign reductions in profitability - given the current challenges. The company looks set to break the €2 billion revenues barrier this year and is well placed for further growth in 2023, both in terms of sales of current models through its growing partnership with John Deere which brands the company’s Ag telehandlers and other equipment for sale via its dealer network, and higher sales of compact products such as its construction telehandlers where its market share remains very modest. It also has potential for further geographic growth across all regions, and finally it has been making a few bolt on acquisitions, such as Enarco in Spain.

The future looks bright.