Wacker Neuson SE Reports Most Successful Quarter in Over Two Years

Wacker Neuson SE managed to increase revenue and earnings for the first quarter of 2011 significantly relative to the same period last year and also relative to Q4 2010. The Group is leveraging its excellent financial and asset position to capitalize on the upswing and expects to break the EUR 1 billion revenue barrier in 2012, one year earlier than anticipated.

Development during the first quarter of 2011 was extremely positive across the Wacker Neuson Group. With EUR 211.8 million, the Group increased revenue by 40.9 percent relative to the same quarter last year (EUR 150.3 million). Revenue was also up on the equivalent figure for Q4 2010 (EUR 206.3 million). In terms of revenue, Q1 2011 has been the Group’s most successful quarter since over two years.

“This spring, favorable weather allowed the construction season to get off to an early start in our core regions of Europe and the U.S.,” explains Richard Mayer, spokesperson for the Executive Board of Wacker Neuson SE. “This drove light equipment sales up 44 percent, compact equipment sales up 54 percent and sales in the services segment up 19 percent.”

Events in Japan did not have a negative impact on the Group as we have been able to fall back on our own inventory, supplementing with components from European interim depots and utilizing faster logistics paths.

“Revenue for the first quarter of 2011 almost matches that of Q1 2008 [EUR 228.2 million], our benchmark for pre-crisis figures. We are pleased to report that our gross profit margin has already returned to our high pre-crisis level. This growth was fuelled by our success in lowering fixed costs significantly. As revenue increases over the year, this will continue to strengthen our earnings potential,” continues Mayer. “Following the successful implementation of SAP in the first quarter of 2011, we are now working almost exclusively with a uniform IT system. Furthermore, at the forthcoming AGM, we intend to propose that Wacker Neuson SE be transitioned to a holding structure. This new structure will enable us to raise efficiency levels even further.”

The rise in revenue relative to the same period last year was largely fuelled by continued strong demand for light equipment in the United States and strengthened by increased investments from major rental chains. “Following the crisis, the light equipment segment was the first which showed signs of recovery. The fact that this revival is proving to be of a rather lasting than a short-term nature is — in our view — a very positive indicator,” states Mayer.