09.08.2023

Another strong quarter for Wacker Neuson

German telehandler and compact equipment manufacturer Wacker Neuson has posted strong sales and profit growth in the first half and second quarter.

Half Year
Total revenues for the six months to the end of June were €1.37 billion - a 27.4 percent increase on the same period last year. The regional breakdown of revenues is as follows:
Europe - €1.03 billion +24%
The Americas - €300.7 million +48%
Asia Pacific - €41.7 million -4%

Sales in Europe were driven by a strong market in France and higher sales in Germany, central and eastern Europe as well as the Nordic region. The Americas posted the strongest growth thanks to strong sales increases in Mexico and solid growth of the company’s dealer network in the USA. Asia Pacific was hit by lower sales in China and South east Asia only partly offset by ongoing growth in Australia and New Zealand.

Pre-tax profit for the six months leapt 92 percent to €172.9 million, thanks to high prices, an easing supply chain and positive product and geographic sales mix.

Net debt at the end of June jumped 67 percent to €352.9 million.

Second quarter
Total revenues were … made up as follows:
Europe - €519.5 million +25%
The Americas - €158.1 million +41%
Asia Pacific - €21.1 million -13%

Pre-tax profit for the quarter improved 72 percent to €87.7 million.

Full year forecast
The company is now forecasting total revenues for the full year of between €2.5 and 2.7 billion with a margin of 10 to 11 percent. This compares to its previous guidance of 2.3 to 2.5 billion in revenues with a 9.5 to 10.5 percent margin. The top end of the new forecast represents a 20 percent increase in revenues compared to 2022, which was up 21 percent on 2019.

Chief executive Karl Tragl said: "We continued to develop positively in the second quarter despite the ongoing tense environment. This underlines the fact that we are increasingly succeeding in coping with the numerous challenges we face. Against the backdrop of this positive development, we raised our full year guidance in mid-July. Nevertheless, we remain cautious for the second half of the year in order to be able to respond to a potential economic slowdown at any time."

Vertikal Comment
Another strong report from Wacker Neuson which has been growing steadily on the back of an expansion of its market coverage in geographic terms, as well as promoting more of its products outside of its core market. The company produces first class products but could do even better with its marketing and distribution.

Having said that the company will post another year of record revenues and profit, more than doubling its sales since 2015, and is set to break through €3 billion revenue barrier in 2024. Most of it achieved through organic growth as more end users discover its products.

All said and done another very positive set of numbers.