14.11.2023

Another strong quarter for Wacker Neuson

German telehandler manufacturer Wacker Neuson has published its third quarter results and is on track for a record year.

YTD

Total revenues for the nine months to the end of September were €2.01 billion, an increase of 22.7 percent over the same period last year.

Geographic split was as follows:
Europe: €1.51 billion +14%
The Americas: €447.1 million +34%
Asia Pacific: €60.7 million – 8%

Pre-tax profit for the nine months jumped 60 percent to €231.8 million.

Third Quarter

Total revenues for the quarter were €648 million an increase of 14 percent over the same period last year.

Geographic split was as follows:
Europe: €482.6 million +16%
The Americas: €146.4 million +12%
Asia Pacific: €19 million – 15%

Pre-tax profit for the three months was €58.9 million, up nine percent on the same quarter last year.

Full year projecton
The company is maintaining its previous forecasts, for full year revenues of between €2.5 and 2.7 billion.

Chief executive Karl Tragl said: "Following exceptional revenue and earnings growth in the previous fiscal year and also in the first half of the year, the economic slowdown we anticipated is now materializing in a weakening of demand," explains. "As it is currently impossible to estimate the duration and depth of the slowdown, it presents a particular challenge to adapt our production, purchasing and sales to the rapidly changing market conditions."

As in previous quarters our core markets of Europe and North America were characterised by significant double digit growth, although this was accompanied by a slowdown in momentum. Overall, the third quarter saw a noticeable cooling of the pace of growth in all submarkets in the region compared to previous quarters.”

“On the product side, demand continued, particularly for wheel loaders and telehandlers. Momentum also weakened in the attractive market for compact equipment for the agricultural sector under the Kramer and Weidemann brands.”

“In the Asia-Pacific region, revenue declines were mainly down to China and Southeast Asia. In the Australian market, which showed a strong development in demand in the first half of the year, the economic environment also had a dampening effect in the course of the third quarter. Exchange rate effects also continued to make a significant contribution to the decline in revenue in the third quarter.”

Vertikal Comment

While momentum has slowed for the company this is obviously still a first class result, with a strong profitability bounce back and particularly strong growth in its telehandler business where it has plenty of headroom for further growth. Its market share remains modest to say the least.

Compact Equipment which includes telehandlers, now represents around 60 percent of the group revenues, having increased 23 percent in the quarter, Services also saw double digit growth, while its Light Equipment division – mostly the old Wacker concrete finishing and compaction products declined seven percent.

The company builds a very good telehandler but could do with a wider product range.
All in all, a very positive result.