DGAP-News

Wacker Neuson SE: Wacker Neuson improves earnings in Q3 2016 despite challenging environment

DGAP-News: Wacker Neuson SE / Key word(s): Quarter Results/9-month figures
Wacker Neuson SE: Wacker Neuson improves earnings in Q3 2016 despite
challenging environment

10.11.2016 / 07:46
The issuer is solely responsible for the content of this announcement.

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Wacker Neuson improves earnings in Q3 2016 despite challenging environment

(Munich, November 10, 2016) Leading international light and compact
equipment manufacturer, the Wacker Neuson Group, saw revenue and earnings
for the third quarter of 2016 increase relative to the previous year.
Viewed over a nine-month period, revenue remained at the prior-year level,
balancing out the drop in earnings experienced during the first half of the
year only partly.

Trends during the third quarter of 2016
Despite adverse market factors, including ongoing crises in many emerging
markets and key industries such as the agricultural sector, the oil and gas
industry and mining, Group revenue for the third quarter of 2016 rose 2
percent relative to the previous year to reach EUR 315.7 million (Q3/15:
EUR 311.0 million). Adjusted to discount currency effects, this corresponds
to an increase of 3 percent.

Revenue in the core market of Europe increased by 9.0 percent in the third
quarter of the year. This was primarily driven by stable demand from the
construction sector in German-speaking countries as well as in France,
Denmark, Sweden and the Benelux countries. In contrast, revenue in the
Americas decreased by 15 percent. In North America, demand for new
equipment is being dampened by high inventory levels among dealers and
rental chains plus large volumes of used equipment circulating on the
market at low prices. Despite growth in China, the Group experienced
falling demand in Australia and New Zealand. Revenue decreased by 23
percent in the Asia-Pacific region.

Earnings before interest and tax (EBIT) for the third quarter of 2016
increased 25 percent to EUR 19.3 million (Q3/15: EUR 15.5 million). The
EBIT margin rose to 6.1 percent (Q3/15: 5.0 percent). At EUR 12 million,
profit for the period was higher than in the previous year (Q3/15: EUR 8.5
million). Earnings per share rose 42 percent to EUR 0.17 (Q3/15: EUR 0.12).
Here it should be noted that revenue and earnings for the prior-year period
were quite low by comparison. Weak demand in the agricultural sector
together with the oil and gas crisis plus unfavorable currency effects
negatively impacted results in Q3 2015.

Trends during the first nine months of 2016
At the close of the first nine months of the year, Group revenue amounted
to EUR 1,013.5 million and thus almost remained at the prior-year level