Wacker Neuson reported revenue of €378.7 million (about U.S. $441.8 million) for the third quarter of 2017, compared to €315.7 million for the third quarter a year ago, a 20-percent increase. EBIT nearly doubled to reach €40 million compared to €20.4 million in the third quarter of 2016, with an EBIT margin of 10.6 percent.
“There is no doubt that we were buoyed by strong markets in North America and Europe,” said Martin Lehner, CEO of the Wacker Neuson Group. “However, it was the successful implementation of our growth strategy that really enabled us to outgrow the market.”
The third quarter is typically a high-margin period for Wacker Neuson and all three operational business segments – light equipment, compact equipment, and services – reported a revenue increase compared to the previous year’s third quarter. Light equipment revenue rose 14 percent, compact equipment jumped 27 percent and services increased 11 percent.
“The need among international rental companies to catch up on equipment stock levels fueled a significant increase in sales of light equipment, especially of generators and light towers,” said Lehner. “Growth in the compact equipment segment was driven by our ongoing success in the material handling business field in the European construction and agricultural sectors as well as by an expected upswing in sales of skid-steer loaders manufactured in North America.”
Wacker Neuson’s largest market, Europe, which accounts for about 75 percent of the company’s revenue, reported a 17-percent boost in revenue for the third quarter compared with the previous year’s third quarter. Business developed particularly well in Germany, Austria, Switzerland and the Benelux countries. Revenue grew 32 percent in the Americas with strong gains in worksite technology, skid-steer loaders produced in the United States and compact equipment imported from Europe in the third quarter. In Asia Pacific, third quarter revenue leaped 14 percent, with Australia the leading growth driver. Wacker Neuson is currently building a new factory for compact equipment in Pinghu, China, near Shanghai. The company plans to start manufacturing compact excavators for the Chinese market in the first quarter of 2018.
For the first nine months of the year, revenue rose 13 percent to a record high of €1.142.4 million. EBIT jumped 42 percent to €101 million. Revenue growth, internal process improvements and strict cost control measures all had a positive impact on earnings.
