Wacker Neuson posted a group revenue increase of 12 percent to €812.6 million (about U.S. $1.04 million) for the first nine months of 2012, a company record for the period. Light equipment and compact equipment were the strongest segments, reporting hikes of 10 and 14 percent respectively. The Americas was the strongest regional revenue driver, with a 22-percent increase. Revenue increased 8 percent in Europe.
Group revenue for the third quarter increased 2 percent to €254.5 million (about U.S. $326.4 million) compared with €248.9 million for the third quarter of 2011. The results reflect an economic downturn, especially in the European construction sector.
“During the third quarter in particular, we felt the impact of falling demand in the European construction industry as a result of the ongoing finance and debt crisis,” said Cem Peksaglam, Wacker Neuson CEO. “In contrast, our revenue in the Americas region continued to develop well, rising 10 percent on the prior-year period.”
The services segment accounted for more than 20 percent of group revenue in Q3, and increasing by more than 13 percent compared to the same period a year ago.
EBITDA margins for the first nine months of 2012 fell to 13.6 percent as a result of unfavorable market conditions in Europe. Third-quarter EBITDA margin was 19.9 percent in 2011.
The company said the Americas region should continue to do well in the fourth quarter, while demand in Europe was likely to continue to decrease. “We will continue to monitor market developments closely and retain our high level of flexibility, thus enabling us to react rapidly to any market changes,” added Peksaglam. “Our current order intake levels leave us optimistic for the fourth quarter of 2012.”
Wacker Neuson reconfirmed its forecast for the current year and expects revenue to reach about €1.1 billion for the year, with EBITDA margin of between 13 and 15 percent. The company expects to increase core market penetration and expand its international footprint. It also expects to grow in 2013, depending on the general economic climate, particularly in Europe.