Wacker Neuson profit sinks
By Helen Wright16 November 2012
Construction equipment manufacturer Wacker Neuson reported net profit for the first nine months of 2012 of €59 million, down 25% year-on-year, while earnings before interest, taxes, depreciation and amortisation (EBITDA) shrank 9% to €121.2 million.
Wacker Neuson said unfavourable market conditions in Europe had hit earnings – a factor which was compounded by costs associated with relocating to its new production facility in Hörsching, Austria.
It said it had experienced unexpected delays in product deliveries and additional one-off start-up costs during the relocation, which also impacted earnings.
In contrast, the company said revenues hit a record high for the nine-month period, at €812.6 million – up 12% year-on-year.
Light equipment and compact equipment were the strongest segments in terms of revenues, reporting increases of 10% and 14% respectively. The Americas was the strongest regional revenue driver, with a rise of 22%, while revenues in Europe grew 8% compared to the same period in 2011.
And Wacker Neuson said the fourth quarter had got off to a promising start, although group performance varied significantly from region to region. It said the Americas region looked set to continue on its growth path, whereas demand in Europe would most likely fall further.
Wacker Neuson CEO Cem Peksaglam said, “We will continue to monitor market developments closely and retain our high level of flexibility, thus enabling us to react rapidly to any market changes. Our current order intake levels leave us optimistic for the fourth quarter of 2012.”
The manufacturer expects full-year revenue to reach around €1.1 billion, up from €991.6 million last year.