Wacker Construction Equipment experienced the best results in company history, with sales of €742.1 million (about U.S. $1.17 billion) compared with €619.3 million in fiscal 2006, a 19.8-percent increase. EBITDA jumped to €119.6 million (about U.S. $188.9), compared with €100.2 million a year ago, a 19.3-percent leap.
These values include figures from the fourth quarter for the company’s merger partner Neuson Kramer Baumaschinen AG, which also had a record year.
“Thanks to robust demand for our products and services, both Wacker Construction Equipment AG and Neuson Kramer Baumaschinen AG set new sales and earnings records in fiscal 2007,” said Dr. Georg Sick, Wacker Group CEO and president. Sick said the results were particularly satisfying during such an eventful year for Wacker, which included an IPO, the merger, high levels of investment and opening of production plants in the Philippines and Germany, which collectively placed a €9.9 million drain on EBITDA for one-off expenses.
Business conditions were less robust in the Americas, although sales rose by 3.5 percent despite exchange rate losses. Business for the entire year was up in Europe and Asia regions and across all business segments (i.e., light equipment compact equipment and services). Sales generated by the rental business in Central and Eastern Europe increased by 26.2 percent. Wacker launched 47 new products and product variants.
The company has a positive outlook for 2008. “2008 has been earmarked as the year of integration and market penetration,” said Sick. “During this period we will be pushing ahead with our growth-focused business strategy. With the merger behind us, we are aiming to break the billion-euro mark for sales and achieve EBITDA of at least 17 percent.” Sick added the company plans to invest more than €100 million in measures such as expansion of the sales and service network, the rental business in Central and Eastern Europe and production capacity. Wacker Neuson will also be launching compact equipment globally through its existing sales network.
Wacker Neuson is based in Munich.
