DGAP-News

Wacker Neuson SE: Wacker Neuson Group: Market squeeze in third quarter of 2015 - Seite 2

currency effects). Revenue from light equipment increased by 3.6 percent
(-5.3 percent when adjusted to discount currency effects). Revenue for the
services segment, which includes the repair and spare parts business,
increased 4.3 percent relative to the previous year. When adjusted to
discount currency effects, revenue remained at the same level as the prior
year.

Downturn in Q3 2015
Preliminary Group revenue for Q3 2015 was 1.6 percent lower than the
previous year's figure at EUR 311.0 million (Q3 2014: EUR 316.2 million).
Adjusted to discount currency effects, this corresponds to a decrease of
4.4 percent. Revenue and profit were negatively impacted by a drop in
demand in developing markets and in target markets dependent on raw
material prices (for example, Canada, the US, Australia, Chile and South
Africa). This drop in demand was more pronounced in Q3 than the first half
of 2015. Demand in Europe continued to fall in France and Russia. In the
first half of 2015, the company did not feel the effects of the current
crisis in the agricultural sector. In Q3, however, a tangible reluctance to
invest in agricultural equipment impacted Group business, in particular
sales of loading equipment in Europe. "During the first half of the year,
and in the second quarter in particular, there were signs that many
crisis-hit markets were starting to recover. The third quarter, however,
showed us just how volatile the situation is at the moment. This trend was
especially pronounced in September. It is particularly disappointing that
we are now feeling the effects of the crisis in the agricultural sector,
compounding weak market performance in construction, raw materials and
energy. Demand is falling in emerging and mature economies alike and so we
can no longer view these crises as being restricted to specific regions,"
adds Peksaglam.

The fall in revenue in the third quarter of 2015 had a negative impact on
profit margins cost ratio. EBIT for the third quarter decreased by 61.3
percent to EUR 15.5 million (Q3 2014: EUR 40.1 million). This corresponds
to an EBIT margin of 5.0 percent (Q3 2014: 12.7 percent). In the third
quarter, the Group implemented appropriate measures to adapt its cost
structures. These will show initial results in the fourth quarter. The
equivalent quarter in 2014 was a record quarter for the Group in terms of
revenue and profit. In addition, profit in this prior-year period was
tangibly bolstered by a more favorable regional and product mix plus
beneficial exchange rate developments.