Wacker Neuson Group reported a significant rise in revenue and profit for the third quarter of 2014 with especially high performance in the Americas and Asia-Pacific.
Sales of light and compact equipment were driven primarily by an upturn in business in North America where the Munich-based group is planning its first production line for compact equipment.
All regions contributed to revenue growth in the third quarter of 2014. Europe reported a 14% increase while the Americas and Asia-Pacific both saw reve
Sales of light and compact equipment were driven primarily by an upturn in business in North America where the Munich-based group is planning its first production line for compact equipment.
All regions contributed to revenue growth in the third quarter of 2014. Europe reported a 14% increase while the Americas and Asia-Pacific both saw revenue rise by 16%.
“The US construction industry is clearly picking up,” said Cem Peksaglam, chief executive of Wacker Neuson.
“Demand is also rising among industrial firms and the energy sector in North America. This had a positive impact on the light equipment segment during the third quarter, with revenue generated from equipment such as generators, heaters, light towers and compaction equipment growing 12% relative to the prior year,” he said.
Group revenue for the third quarter of 2014 was €316.2 million, an increase of 14% for the same period last year (Q3 2013: €276.3 million).
New product launches in 2014 contributed to the group’s sustained market success, said Peksaglam. These include new zero-emissions battery-powered rammers and a zero-emissions compact electric wheel loader.
Profit before interest, tax, depreciation and amortization (EBITDA) grew 34% to €55.1 million, resulting in an EBITDA margin of 17.4% (Q3 2013: €41.2 million; 14.9%). At €40.1 million, profit before interest and tax (EBIT) rose 51%.
“This positive trend is set to continue in North America. Markets in South America, however, are likely to remain weak,” said Peksaglam.
The Americas region accounts for 24% of group revenue. A group statement said that, in line with its internationalisation strategy, production of skid steer loaders from its facility in the Austrian town of Hörsching will be shifted to its site at Menomonee Falls, near Milwaukee, in the US state of Wisconsin.
Employees at the Hörsching site will be redeployed and no layoffs are planned, the group said.
The Executive Board confirms its previous group revenue forecast for fiscal 2014, estimated between €1.25 billion and €1.30 billion (2013: €1.16 billion).
The company will announce its forecast for the fiscal year 2015 in March.
The Wacker Neuson Group employs over 4,200 people worldwide and includes the product brands Wacker Neuson, Kramer and Weidemann.
