Wacker Neuson posted group revenue of €316.4 million, compared to €324.3 million in the first quarter of 2015. Adjusted to currency impact, the decrease was 1 percent.
CEO Cem Peksaglam said key markets have been in a state of crisis.
“In North America, the ongoing slump in demand in the raw materials and energy sectors negatively impacted our business, particularly in the worksite technology field,” Peksaglam said. “South America, and Brazil in particular, continues to be hit by political and economic uncertainties and shows no signs of picking up. By contrast, demand was high in the construction sector in central and northern Europe, and southern European countries improved on the previous year’s performance. However, as expected, trade in compact equipment for the agricultural sector remained below the prior-year level. This is due to extremely low prices for foodstuffs, above all, milk.”
Revenue in Europe, which accounts for 72 percent of Wacker Neuson’s revenue, declined 2 percent, while it declined 15 percent in the Americas region, primarily because of the crisis in the oil-and-gas sector. Also, the dollar’s strong rating had a dampening impact on the export of products manufactured in the United States.
However, Wacker Neuson posted strong results in the Asia Pacific region, where revenue nearly doubled.
“Our business is Asia developed very positively, even allowing for the favorable effect of one-off items on first-quarter revenue growth and we expect these to balance out in the course of the year,” Peksaglam said. “Whereas demand for machines is contracting overall in China, the market for our machinery is on a clear growth path.”
The compact equipment segment, which accounts for the largest share of Wacker Neuson revenue – 51 percent -- posted about the same revenue as the previous year. Light equipment, however, decreased 8 percent because of the downturn in the oil and gas sector as well as ongoing crises in some emerging markets.
Peksaglam was bullish about the company’s prospects for 2016, especially in light of its positive reception at the Bauma show in Munich, Germany, last month.
“The current order situation, a positive business trend in Europe, infrastructure programs in Germany, plus the positive mood evident among many national and international customers at the Bauma trade show indicate that business over the rest of the year, in particular the second half of the year, could compensate for a weak start in the first quarter,” he said.
