The Wacker Neuson Group posted €825 million (about U.S. $981 million) in revenue for the first half of 2018, compared to €764 million for the first half of 2017, an 8-percent rise and a record high for the company. Adjusted for currency effects, the increase is 12 percent. Revenue growth was driven primarily by high levels of demand in the construction market and strong performance in the European agricultural sector. Bottlenecks among some suppliers prevented machines from being completed for customer orders and this had a dampening effect.

Revenues for the Americas region rose 9 percent to €202 million compared to €185 million a year ago. The weak U.S. dollar had a strong impact in this region. When adjusted for currency effects, revenue jumped 21 percent. A high level investment activity among rental chains in North America and strong sales of compact equipment had a positive effect on business.

“Our skid steer loaders manufactured in the U.S. are key product in our compact equipment portfolio, helping us to win more market shares in the region with other products such as excavators and dumpers,” said Martin Lehner, CEO of Wacker Neuson SE.

In Europe, the group’s largest sales market, revenue for the first half increased 8 percent to €599 million compared to €556 a year ago. “Our strong performance in this region was fueled by a buoyant construction market, positive development of our Kramer and Weidermann brands in the agricultural sector and growth in our services segment, which includes our maintenance and spare parts business,” added Lehner.

Revenue in Asia-Pacific increased 4 percent to €24 million, compared to €23 million a year ago.

EBIT grew 28 percent to €78 million in the first half, compared to €61 million in the year-ago half, corresponding to an EBIT margin of 9.5 percent. The rise in revenue along with strict cost-control measures and improvements to internal processes had a positive impact. Increased material prices had a dampening effect, as did material bottlenecks among suppliers, disrupting workflows at production facilities. Productivity was also affected by ongoing restructuring initiatives at U.S. production plants and the start of production at Wacker Neuson’s new Pinghu, China, factory.