Strong first quarter results for Wacker Neuson

Light and compact construction equipment manufacturer Wacker Neuson has reported revenue across the group of €521.6 million for the first quarter of the 2022.

A zero local emissions compact dumper from Wacker Neuson. Photo: Wacker Neuson

This represents a 20.2% rise, relative to the previous year’s €434 million.

The manufacturer stressed, however, that profitability had been impacted by strains on the supply chain, as well as sharp rises in costs for both materials and energy.

With these challenges in mind, the company reported an EBIT margin of 7.5%, down from 10% in the same period in 2021.

Global growth

The group saw double-digit revenue growth across all of its reporting regions: EMEA saw a 17.9% revenue rise, brought about predominantly by strong demand for excavators, wheeled loaders and dumpers, as well as positive results from the company’s rental business.

In the Americas, solid performances in the US and Canada helped revenue growth reach 32.9%, with excavators and compact tracked loaders seeing strong demand.

Wacker Neuson CEO, Dr Karl Tragl. Photo: Wacker Neuson

In Asia-Pacific, revenue increased relative to the previous year by 16.4%, with strong growth in Australia, where excavators and rollers faired best.

Cautious optimism

Dr Karl Tragl, chairman of the executive board and CEO of the Wacker Neuson Group, said, “Despite continued supply chain challenges, our teams succeeded once again in meeting dynamic demand for our products and delivered another quarter of strong growth. At the same time, the coronavirus pandemic and continued supply chain disruptions are still impacting operating workflows and resulting in rework. Along with the high cost of materials and rising energy prices, these factors are putting our gross margin under pressure.”

Looking ahead, the company noted there was the risk of further disruptions to the supply chain, but did not consider the ongoing conflict in Ukraine in its guidance for fiscal 2022, which remains unchanged, with revenue forecasts of between €1.9 billion and €2.1 billion, and an EBIT margin between 9% and 10.5%.