Compact machine specialist Wacker Neuson
says that its financial results show a strong second quarter for 2017 as well as an improved outlook for 2017 as a whole. The firm says that profitability improved and has now raised its revenue forecast for the current fiscal year.
The Wacker Neuson Group reported record revenue of €425.2 million for the second quarter of 2017, compared with €381.4 million for the same period in 2016. At €46.7 million, profit before interest and tax (EBIT) jumped a healthy 41 % compared with the €33.2 million from the previous year an EBIT margin of 11.0%, compared with 8.7% for the same period in the previous year.
Revenue for the first half of the year climbed 9% to €763.7 million, compared with €697.8 million for the same period in 2016. EBIT increased by 20% relative to the previous year to €61 million and the EBIT margin amounted to 8%, compared with €50.7 million and 7.3% in 2016. When adjusted to discount one-off effects in the first quarter, the EBIT margin for the first half-year is slightly higher at 8.2%.
In its largest market, Europe, which accounts for around 73% of revenue, the Group reported a 6% rise in revenue compared with the previous year. Revenue gains were higher in the Americas and the firm reported a 32% rise in revenue in North and South America for the second quarter and an increase of 23% for the first six months of the year. This came from strong growth in compact equipment; skid steer loaders, wheel loaders and telescopic handlers.
The firm also reports good performance for its lighting towers and generators, as well as for its alliance with Hamm for compaction technology.
But the firm reported a drop in revenue in Asia-Pacific. The decrease in revenue in this region is linked to a one-off effect in the first quarter of 2016 involving dealers in China stocking up on compact equipment, which increased the baseline for comparisons. Business in Australia and New Zealand showed double-digit revenue growth for the first half of 2017. In the second quarter of 2017, revenue increased by 65% in Asia-Pacific.
The company is also making progress on its new factory near Shanghai, while in South Korea it has teamed up with Everdigm, a manufacturer of construction equipment.
As a result the company claims it is positive about the second half of 2017 due to the healthy order situation and positive mood across all key markets. In Europe, it expects the construction industry to continue on its positive growth path and demand in the agricultural sector to rise. The company has raised its revenue forecast for the year to between €1.45 and €1.5 billion. This corresponds to an increase of 7-10%.