Munich, Germany-based Wacker Neuson reported an upturn in business in the second quarter of 2013 despite the challenging general economic environment. Second-quarter revenue increased by 15.8 percent relative to the previous year, reaching EUR 329.0 million (about U.S. $437.0 million) compared to EUR 284.2 million in the year-ago quarter. The onset of construction activity in April relieved market tensions resulting from the late start in some countries.
“2013 got off to a slow start due to sluggish economies in many target markets and poor weather conditions in the northern hemisphere,” said Cem Peksaglam, CEO of Wacker Neuson SE. “In Q2, however, our revenue rose 28 percent relative to Q1 2013 to a new record high for the company. Despite a significantly more intensive competitive landscape, we were able to successfully maintain and in some cases expand our position. Our ability to adapt to dynamically changing markets and our commitment to strategically implementing our international expansion and diversification strategy are crucial to our success.”
The light equipment segment reported a 12-percent Q2 revenue increase relative to the previous year. Revenue from compact equipment such as excavators, wheel loaders, dumpers and skid-steer loaders rose by 19 percent, while the services segment reported a 14-percent rise in revenue.
Profit before interest, tax, depreciation and amortization (EBITDA) rose 20.4 percent in the second quarter of 2013 to EUR 44.9 million (U.S. $59.6 million) from EUR 37.3 million in Q212. This corresponds to an EBITDA margin for the quarter of 13.6 percent. The EBIT margin amounted to 8.9 percent.
During the first six months of 2013, revenue rose 5.0 percent to EUR 586.1 million (U.S. $778.5 million) from EUR 558.1 million in the first half of 2012. Revenue in the first quarter was 6.2-percent lower than the prior-year figure due to delayed construction activity (Q1 2013: EUR 257.1 million).
The weak first quarter pushed profit for the first half of the year below the prior-year figure. EBITDA amounted to EUR 69.7 million (U.S. $92.6 million) compared to EUR 76.1 million in the first half of 2012. This corresponds to an EBITDA margin of 11.9 percent. Profit before interest and tax (EBIT) totaled EUR 40.4 million compared to EUR 49.2 million in the same period a year ago, which brought the EBIT margin to 6.9 percent.
Wacker Neuson has identified new market opportunities in South America, Eastern Europe, Africa and Asia. To leverage this growth potential, the company is increasingly distributing products and services tailored to regional requirements. Further growth opportunities for the Group exist in its core markets of Europe and North America, the company said.
Wacker Neuson reported a double-digit rise in order intake at the close of the first half of 2013. The overall forecast for the year remains unchanged, with revenue expected to amount to around EUR 1.2 billion (U.S. $1.6 billion) overall and the EBITDA margin to exceed 13.0 percent.
“Despite our strong second quarter, we will have to keep working hard to meet our revenue and profit goals for the year,” Peksaglam said. “As such, we will keep a close eye on spending and focus on our strengths in production and distribution. I am confident that we will once again achieve our goals in 2013.”
Wacker Neuson is a leading manufacturer of light and compact equipment.
