Munich-based compact and light equipment manufacturer Wacker Neuson posted a 13-percent group revenue increase for the first quarter compared to the same period a year ago, with a new first quarter record of €291.6 million (about U.S. $400 million), compared to €257.1 million a year ago. Discounting the adverse effects of the strong euro, revenue grew 17 percent.
Europe accounted for the lion’s share of overall growth, with revenue rising 20 percent year over year. The Americas region increased 6 percent in revenue, and Asia Pacific grew 5 percent.
“Our business was bolstered by the steady upturn in the European construction industry, a more upbeat mood across the European agricultural sector coupled with a relatively mild winter and a general revival in the U.S. construction industry,” said Cem Peksaglam, CEO of Wacker Neuson SE. “We were able to strengthen our position in almost all markets.”
The compact equipment segment was a strong revenue driver in the first quarter of 2014. Revenue was 21 percent higher than the previous year. The group is increasingly seeing the dividends of its targeted strategy of pushing the sale of excavators, wheel loaders, dumpers and skid-steer loaders through Wacker Neuson’s existing international sales network. The light equipment segment continued to grow, but the revenue figures were affected by exchange rate fluctuations. Revenue from services, including repair and the spare parts business, jumped 20 percent year over year.
“We will continue to look for sales opportunities in markets other than the construction and agriculture sectors and intend to align our products and services more closely with the needs of local customers,” added Peksaglam.
Peksaglam said the company expects revenue to grow between 8 to 12 percent in 2014, with “increasingly positive signals from Southern Europe and – even more importantly – strong traction from established markets in Europe and North America plus the momentum from our current strategy.”
Wacker Neuson is based in Munich with U.S. headquarters in Menomonee Falls, Wis.