The Wacker Neuson Group posted a slight drop in revenue and earnings for the first quarter of 2013 relative to last year’s first quarter. The company expects business to improve over the course of the year. A weak European economy was one of the main factors that dampened demand for light and compact construction equipment in the first quarter. Also, the company adds, its strong performance in the first quarter of 2012 resulted in an above-average baseline for comparison.
At €257.1 million (about U.S. $330.6 million), group revenue was down 6 percent compared to €274 million a year ago. Revenue from the light equipment and compact equipment segments fell by 8 percent and 9 percent respectively.
“Ongoing financial problems across Europe are making it difficult to plan construction projects and making our customers reticent to invest,” said Cem Peksaglam, Wacker Neuson CEO. “Business in the U.S. also developed below our expectations in the first quarter of the year. However, we are confident that things will pick up over the course of the year.”
A long winter delayed the start of the construction season in the northern hemisphere. Also some customers put investments on hold until April so they could purchase equipment at or immediately after Bauma, the world’s largest construction equipment trade show, Wacker Neuson officials added.
“The overall positive mood at Bauma together with developments in recent weeks gives us every reason to be optimistic about the remainder of the year,” added Peksaglam.
Wacker Neuson is confident it will make up for the shortfall from the first quarter as the year progresses. Its overall forecast for the year remains unchanged, with revenue expected to increase to about €1.2 billion overall, with an EBITDA margin to top 13 percent.
Wacker Neuson is based in Munich, Germany, with U.S. headquarters in Menomonee Falls, Wis.
