The Wacker Neuson Group increased second-quarter revenue relative to both the first quarter of its current fiscal year as well as the same quarter in 2009, according to provisional figures the company released this week. Wacker Neuson also posted positive earnings and a strong revival of order intake, with order backlog for compact equipment at the end of June 2010 350-percent higher than for the same period last year.
Wacker Neuson will release its full half-year report August 13.
According to provisional figures, quarterly revenue is expected to reach €205.3 million (about U.S. $266.6 million), a 36-percent improvement compared with the first quarter and a 31.2-percent jump compared with the second quarter a year ago. In addition to a more positive environment in the compact equipment market, Wacker Neuson management credited cost-efficiency measures introduced at the end of 2008 as contributing to the results.
The provisional Q2 EBITDA is €17.2 million, a greater than 500-percent improvement compared to €3.2 million for the same period of 2009. Provisional Q2 profit for the period after tax and minority interests were about €10.9 million compared with €1.4 million for last year’s quarter. The numbers offset first-quarter losses of about €5.7 million, returning to profit in the first half of 2010 as previously planned.
Wacker Neuson remains on a strong financial footing with an equity quota of 79 percent and a low net financial debt.
Accumulated order income for compact equipment almost doubled in the first half year relative to the same period last year, fuelled by the construction and agricultural industries. The upturn, however, was accompanied by delivery bottlenecks among certain suppliers, but the company was optimistic the issues would be resolved.
“Our production facilities for light and compact equipment such as wheel loaders, dumpers and excavators show a healthy level of capacity utilization,” said Dr. Georg Sick, CEO of Wacker Neuson SE. “In addition, our recent alliance with Caterpillar has the effect of accelerating construction plans for our new production facility in Hörsching, near Linz, in Austria.”
Wacker Neuson and Caterpillar have agreed to collaborate for the next 20 years, beginning with Wacker Neuson exclusively developing mini-excavators up to a total weight of three tons and manufacture these at Wacker Neuson’s plant in Australia. Caterpillar will use these machines to meet worldwide demand for its mini-excavators, with the exception of Japan.
“Caterpillar has the world’s strongest distribution network,” added Sick. “This strategic alliance allows us to increase production volumes, reduce manufacturing costs and strengthen the competitive positions of both companies in what is a highly fragmented market.”
Demand for light equipment remains strong in Europe, the United States and Asia, Wacker Neuson officials said.
Wacker Neuson is based in Munich, Germany, with U.S. headquarters in Menomonee Falls, Wis.
