Wacker Construction Equipment AG last week reported that results for the first half of fiscal 2007 align with budgetary targets, with group sales up 8.1 percent compared with the previous year. The company is expecting further sales and profit growth over the current fiscal year after the merger with Neuson Kramer Baumaschinen AG, based in Linz, Austria, goes ahead this summer.
Wacker’s first half sales were €341.7 million (about U.S. $459 million). Organic growth accounted for 7.4 percent of the increase. Discounting exchange rate fluctuations, sales would have jumped 11.5 percent.
“These results align with our projections and sales are showing an upward trend across all business segments,” said Dr. Georg Sick, Wacker chairman and CEO. “We are seeing especially strong growth in Europe, particularly in Germany.”
Sales in Europe jumped 16.5 percent in the first half, to €223.2 million (about U.S. $300 million). Germany reported a 28.8 percent growth to €69.9 million (about U.S. $94 million). After a weaker first quarter in the Americas region, the region posted first-half sales of €55.9 million, after hitting €56 million in the first half of 2006, despite uncertainty surrounding the U.S. property market. In Asia, second quarter sales grew 7.3 percent to €6.0 million.
In the first half of 2007, revenue from the rental business in Germany, Austria, Switzerland, the Netherlands, Poland and the Czech Republic grew 40.7 percent to €21.6 million. “We are now aiming to grow sales and earnings even further for fiscal 2007 as a whole,” added Sick. The company expects 2007 sales of €655 to €670 million, compared to €619.3 million for 2006.
Wacker Construction Equipment AG and Neuson Kramer Baumaschinen AG are planning to conclude a merger agreement this summer. Strong demand for Neuson products in Europe pushed up preliminary group-wide sales for the first half of fiscal year 2007/2008 (Feb. 1 through July 31) 30.3 percent to €181 million. Preliminary figures show profit before interest and tax of €36 million, a 45.2 percent year-over-year increase.
