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Wacker Neuson SE: Strong Q2 profit for Wacker Neuson in 2014

DGAP-News: Wacker Neuson SE / Key word(s): Half Year Results/Forecast
Wacker Neuson SE: Strong Q2 profit for Wacker Neuson in 2014

05.08.2014 / 07:40

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Strong Q2 profit for Wacker Neuson in 2014

(Munich, August 5, 2014) Munich-based manufacturer of light and compact
equipment, Wacker Neuson, posted a clear profit increase in the second
quarter of 2014, with revenue remaining at the same level as the previous
year. The Group posted new record revenue and earnings figures for the
first six months of the year. The Group has confirmed its forecast for
fiscal 2014.

Strong second quarter profit
Wacker Neuson reported revenue of EUR 328.4 million for the second quarter
of 2014, bringing the Group close to the record figure reported for the
prior-year period (Q2 2013: EUR 329.0 million). Adjusted to discount
currency fluctuations, revenue increased by 2 percent. The short, mild
winter in Europe meant an early start to the construction season in 2014.
Construction companies brought forward a number of investments, resulting
in a strong first quarter for Wacker Neuson in 2014 (Q1 2014 revenue: +13
percent on previous year).

Wacker Neuson reported a marked increase in earnings compared to the
previous year. Profit before interest and tax (EBIT) reached EUR 41.3
million in the second quarter of 2014, an increase of 41 percent compared
to the previous year (Q2 2013: EUR 29.3 million). The Group's EBIT margin
thus grew from 8.9 to 12.6 percent, with the EBITDA margin increasing from
13.6 to 17.3 percent.

Record six months in 2014
The first six months of 2014 saw revenue grow by 6 percent on the previous
year to EUR 620.0 million (H1 2013: EUR 586.1 million). This was a new
record high for the Group. Adjusted to discount currency fluctuations,
Wacker Neuson achieved a 9-percent growth in revenue. Revenue developed
particularly well in Europe, while exchange rate fluctuations brought
results for the Americas and Asia-Pacific below the previous year's
figures. "We were able to further expand our market position in Europe,
boosting revenue here by 10 percent," explains Cem Peksaglam, CEO of Wacker
Neuson SE. "We also reported growth in North America. However, South
America and Asia-Pacific developed below our expectations due to falling
demand and currency fluctuations." The compact equipment segment proved to
be a key growth driver, with revenue increasing 13 percent. This success is
fueled by the Group's strategy to leverage its existing global sales
network in a bid to expand into new markets and strengthen its position in
existing markets. "Business with our Weidemann and Kramer branded equipment