Wacker Neuson Group reports strong Q2 results
The Wacker Neuson Group reported record revenue of EUR 425.2 million for the second quarter of 2017 (Q2 2017). This corresponds to an increase of 11 per cent relative to the previous year (Q2/2016: EUR 381.4 million). At EUR 46.7 million, profit before interest and tax (EBIT) rose 41 per cent compared with the previous year (Q2/2016: EUR 33.2 million), resulting in an EBIT margin of 11.0 per cent (Q2/2016: 8.7 per cent).
Revenue for the first half of the year climbed 9 per cent to EUR 763.7 million (H1/2016: EUR 697.8 million). EBIT increased by 20 percent relative to the previous year to EUR 61.0 million and the EBIT margin amounted to 8 per cent (H1/2016: EUR 50.7 million; 7.3 per cent). When adjusted to discount one-off effects in the first quarter, the EBIT margin for the first half-year is slightly higher at 8.2 per cent.
In Europe, which currently accounts for around 73 per cent of revenue, the Group reported a 6-per cent rise in revenue compared with the previous year. Revenue gains were higher in the Americas. ?We reported a 32-per cent rise in revenue in North and South America for the second quarter and an increase of 23 per cent for the first six months of the year. We are particularly pleased to see strong growth in compact equipment, especially with our skid steer loaders, wheel loaders and telescopic handlers. We have also made further progress on expanding our dealer network,? explains Cem Peksaglam, CEO, Wacker Neuson SE
In contrast to this, the Group reported a drop in revenue in Asia-Pacific (share of total revenue: approximately 3 per cent). The decrease in revenue in this region is primarily linked to a one-off effect in the first quarter of 2016 involving dealers in China stocking up on compact equipment, which increased the baseline for comparisons. Business in Australia and New Zealand showed double-digit revenue growth for the first half of 2017. In the second quarter of 2017, revenue increased by 65 per cent in Asia-Pacific.
The company has raised its revenue forecast for the year to EUR 1.45-1.50 billion (previously EUR 1.40-1.45 billion). This corresponds to an increase of between 7 and 10 per cent (previously 3 to 7 per cent). The Group expects the EBIT margin to settle in the middle of its forecast range of 7.5 to 8.5 per cent at the close of the year. This forecast does not yet include potential one-off earnings from the sale of a real-estate company held by the Group, which is expected to generate income in the mid-double-digit million Euro range in the fourth quarter. The Group revenue for the previous year amounted to EUR 1.36 billion and the EBIT margin came in at 6.5 per cent.