Wacker Neuson SE, formerly known as Wacker Construction Equipment, has achieved its fiscal 2008 group forecasts for sales of at least €870 million (about. U.S. $1.01 billion) and EBITDA margin after purchase price allocation of at least 11 percent, equal to at least €95.7 million), based on preliminary figures.
Sales increased 17.3 percent to €870.3 million as a result of the merger of Wacker and Neuson, compared with 2007 sales of €742.1 million. EBIDTA is set to total about €100 million, compared with €117 million in 2007.
The Wacker Neuson Group remains committed to its long-term growth strategy and is in a secure financial position because of its business model, the company said, combining high equity ratio of 77 percent and net financial debt of about €58 million. The company regards its long-term prospects as good, although short-term trends are set to be characterized by the overall depressed economic outlook and less than favorable forecasts for the international construction industry. Because of the uncertainty, Wacker Neuson has decided not to release projected figures for the current fiscal year.
Wacker Neuson has intensified the cost-saving measures implemented last year in order to align its cost structure with current market dynamics, including reducing expenditure in all areas and cutting the budget for investment by about 40 percent. The group plans to continue reducing sales and administration costs in 2009. Wacker Neuson is also reacting to falling demand, having closed its Tredegar, Wales, plant at the end of 2008, implemented short-time work at its German production facilities in Reichertshofen and Pfullendorf as well as its Linz, Austria, plant. The transfer of four-wheel dumper production from Tredegar to Linz will be completed in March.
Wacker Neuson is based in Munich, Germany.
