DGAP-News

Wacker Neuson SE: Wacker Neuson improves earnings in Q3 2016 despite challenging environment - Seite 2

(9M/15: EUR 1,017.4 million). A number of key factors impacted earnings for
the first nine months of 2016, including a weak first quarter and a
significant change in our regional and product mix. During this period,
EBIT decreased by 14 percent relative to the previous year to reach EUR 70
million and the EBIT margin narrowed to 6.9 percent (9M/15: EUR 81.2
million; 8.0 percent). Profit for the period amounted to EUR 45.8 million
(9M/15: EUR 53.7 million). This corresponds to earnings per share of EUR
0.65 (9M/15: EUR 0.77).

Despite economic headwinds, the Group remains committed to its strategic
direction. "2016 is undoubtedly a year of transition for the Group, during
which we have optimized processes and structures and also laid the
foundation for future growth," explains CEO Cem Peksaglam. "For example, we
continued to expand our international footprint by establishing new
production sites in Brazil and, in future, also China. We consolidated the
different spare parts services at our compact equipment production
facilities in Europe to create a central warehouse in Nuremberg and also
merged our R&D center for light equipment from Munich with our production
site in Reichertshofen. In addition to this, we launched our eCommerce
platform. And at this year's bauma fair in Munich, the world's largest
construction industry tradeshow, we again sent a strong signal to the
industry with new models in our zero-emission product line. We are
strengthening our organizational and execution capabilities so we can more
effectively master growing global challenges over the coming years," adds
Peksaglam.

Improved cash flow
Cash flow from operating activities amounted to EUR 94.3 million in the
first nine months of the year and was thus significantly higher than the
prior-year figure (9M/15: EUR 52.8 million). Working capital fell 7 percent
relative to the previous year. This was primarily due to the planned
reduction of inventory by 13 percent. Free cash flow came to EUR 10.2
million (9M/15: EUR -28.4 million).

Revenue and earnings at lower end of forecast
"Levels of uncertainty and volatility remain high in our markets. Business
in North and South America, which account for 21 percent of our Group
revenue, developed below our expectations as did markets in Australia and
Africa. However, we expect Europe to remain a robust sales region overall,"
continues Peksaglam. The company expects revenue and earnings for fiscal
2016 to come in at the lower end of its published forecast (revenue of
between EUR 1,375 million and EUR 1,425 million; EBIT margin between 6.5