Wacker Neuson posts double-digit growth despite economic slowdown

Wacker Neuson, a leading light and compact equipment manufacturer, remains on course for strong growth despite increasing signs of a general economic slowdown.
November 10, 2023 Read time: 3 mins
Wacker Neuson is on course for strong full-year growth after an impressive first nine months of trading. Pic: Wacker Neuson

The German group’s revenue in the first nine months increased by 22.7% year-on-year to €2,013.9mn (2022: €1,641mn). At EUR 240.4 million, earnings before interest and taxes (EBIT) again showed eye-catching growth of 66.3% to €240.4mn (2022: €144.6mn). Wacker Neuson’s EBIT margin after nine months stood at 11.9%.

Looking at the third quarter separately, the EBIT margin declined in line with expectations to 9.8% (Q3 2022: 10%). The decline in EBIT margin over the year, which is in line with expectations, is mainly attributable to the extraordinary earnings effects already published in the first two quarters of 2023 from the disposal of non-current assets no longer required for operations (around €15mn) and the sale of intangible assets (around €11mn), as well as the emerging economic slowdown.

"Following exceptional revenue and earnings growth in the previous fiscal year and also in the first half of the year, the economic slowdown we anticipated is now materialising in a weakening of demand," explains Dr. Karl Tragl, CEO of Wacker Neuson Group. "As it is currently impossible to estimate the duration and depth of the slowdown, it presents a particular challenge to adapt our production, purchasing and sales to the rapidly changing market conditions."

As in previous quarters, Wacker Neuson’s core markets in Europe and North America were characterised by significant double-digit growth, although a slowdown in momentum accompanied this. In the Europe (EMEA) region, revenue increased by 21.2%  to €1,506.1mn (2022: €1,242.2mn). Overall, the third quarter saw a noticeable cooling of the pace of growth in all submarkets in the region compared to previous quarters. On the product side, demand continued, particularly for wheel loaders and telehandlers. Momentum also weakened the attractive market for compact equipment for the agricultural sector under the Kramer and Weidemann brands. However, overall revenue in the Agriculture segment continued to rise significantly by 51.4% to €481.5mn (2022: €318mn).

The Americas region continued to show increased growth momentum compared to the European markets over the first nine months. Revenue in the region rose by 34.2% to €447.1mn (2022: €333.1mn). Although growth thus remained well into double digits, this sales region also showed weaker development momentum in the third quarter. The decline of the US dollar against the euro had an additional dampening effect in the third quarter. Nevertheless, demand in the North American market remains good across all sales channels, particularly for construction site equipment and excavators.

In Asia-Pacific, revenue declined 7.6% to €60.7mn in the first nine months (2022: €65.7mn). This mainly accounts for the markets of China and Southeast Asia. In the Australian market, which showed a strong development in demand in the first half of the year, the economic environment also dampened in the third quarter. Exchange rate effects also, says Wacker Neuson, contributed significantly to the decline in revenue in the third quarter. Adjusted for foreign exchange, the region's revenue was almost level with the previous year.

For more information on companies in this article

Related Content

  • The market is due for a slowdown
    December 13, 2012
    There is nothing that fuels economic uncertainty like economic uncertainty. Lack of confidence amongst investors ensures a reluctance to invest, and that is a common problem for many of the markets around the world at present. The financial crash that started in the US in 2008 and then spread to Europe is an economic malaise that has lasted longer than previous recessions and has had a wider effect for the world economy. Europe has been hard hit and speaking at the recent Committee for European Constructio
    Read More
  • Deutz bullish with strong results
    March 14, 2018
    German engine maker Deutz reports a strong financial performance for 2017, with a marked increase in new orders, revenue and operating profits. With a view to the future, the firm is also positioning itself as a leader for innovative drive systems for off-highway applications. The firm’s new orders amounted to €1,556.5 million, up by 23.4% on the prior-year figure of €1,261.4 million. All of the major application segments, including the service business, registered an increase in new orders. Almost 162,000
    Read More
  • Q2 sales down but market share up for Volvo Construction Europe
    July 19, 2016
    Volvo Construction Equipment reports share growth as overall market declines in Q2. Lower demand in most markets outside Europe weighed on Volvo CE’s second quarter 2016 revenue. But this was partially offset by gains in market share in the heavy equipment segment, according to a written statement from the Swedish manufacturer. Adjusted for currency movements, Volvo CE reported net sales down 7% in the second quarter of 2016, impacted by lower demand in most markets outside Europe. Weaker machine sal
    Read More
  • Heavy equipment demand strong in Asia-Pacific according to report
    April 12, 2013
    A report from market analysis specialist Timetric has highlighted increased demand for machines in the Asia-Pacific region. This report shows that the Asia-Pacific region has overtaken Europe and North America in demand for heavy construction machinery and earthmoving equipment. The 57.8% market share of the Asia-Pacific market for these machines makes it the largest in the world, followed by Europe with 22.0% and North America with 12.4%, according to the report. Economic uncertainty in Europe and slow gro
    Read More

Highlighted Content