Wacker Neuson posted first-quarter profit of €9 million (about U.S. $12.8 million), compared with €5.7 million for the first quarter of 2010, a 57.9-percent increase. Revenues for the quarter jumped €40.9 percent from €150.3 million in the year-ago quarter to €211.8 million (about U.S. $301 million) this year.
In terms of revenue, the first quarter was the group’s most successful quarter in more than two years.
“This spring, favorable weather allowed the construction season to get off to an early start in our core regions of Europe and the U.S.,” said Richard Mayer, spokesman for the executive board of Wacker Neuson SE.
Light equipment sales increased 44 percent, compact equipment sales jumped 54 percent and sales in the service segment increased 19 percent.
“Revenue for the first quarter of 2011 almost matches that of Q1 2008 (€228.2 million), our benchmark for pre-crisis figures,” added Mayer. “Our gross profit margin has already returned to our high pre-crisis level. This growth was fueled by our success in lowering fixed costs significantly. As revenue increases over the year, this will continue to strengthen our earnings potential.”
“We are currently utilizing the strong financial position we established in previous years due to uncertainties on the financial markets,” said Günther Binder, chief financial officer for Wacker Neuson. “Our strong balance sheet structure gives us the financial position to increase our working capital and finance our planned investments. Once our new production facility for excavators, dumpers and skid-steer loaders in Austria is finalized, we will have the capacity we need to reach our ambitious growth targets for 2012 and beyond.”
In light of the strong results and the positive business outlook, Wacker Neuson now expects revenue to climb to between €880 and €920 million, with Wacker Neuson exceeding pre-crisis revenue levels one year earlier than anticipated in 2012.
Wacker Neuson is based in Munich, with U.S. headquarters in Menomonee Falls, Wis.