Wacker Neuson’s first half results for 2022 saw revenue jump 15.5 per cent on the previous year with double-digit growth across all reporting regions.
The group, a manufacturer of light and compact equipment, said that revenue guidance remains unchanged at between €1.9 billion and €2.1 billion. Group revenue for the first half of 2022 reached a record of €1.07 billion which is a rise of 15.5 per cent relative to the previous year’s €928.3 million.
However, profitability remained under pressure against the backdrop of ongoing supply chain strains and persistently high costs for materials, energy and shipping. Earnings before interest and tax (EBIT) fell 12.6 per cent to €87.5 million (H1/21: €100.1 million).
“Order intake was already at a very high level in the first quarter and this positive momentum accelerated even further in the second quarter,” said Karl Tragl, chairman and chief executive of the Wacker Neuson Group.
“We thus have an order backlog extending well beyond the current fiscal year. However, there are still no signs of improvement in the supply situation, and material, energy and shipping costs remain high – all of which has a negative impact on our profitability. On the other hand, we do expect our price increases to have a positive impact on gross margin from the third quarter onwards,” he said.
Revenue in Europe (EMEA) for the first half-year rose 12.1 per cent relative to the previous year, reaching €826.3 million (H1/21: €737.1 million). This growth was driven not only by the group’s home market Germany, but by the major European construction equipment markets of the UK and France, which likewise recorded double-digit growth rates.
The group benefited from strong demand for wheel loaders and dumpers for the construction industry. Wacker Neuson’s own rental and service business also developed on a positive trajectory, as did the high-margin spare parts business. Compact equipment sold under the Kramer and Weidemann brands for the agricultural sector again performed well, with revenue rising 18.7 per cent to reach €207.4 million (H1/21: €174.7 million).
The Americas recorded positive demand across all sales channels. Revenue rose significantly, climbing 28 per cent to €202.8 million in the first half-year (H1/21: €158.4 million). This rise was accentuated by a weak euro relative to the US dollar.
In Asia-Pacific, revenue increased relative to the previous year by 32.3 per cent to €43.4 million (H1/21: €32.8 million). There was sustained strong growth in Australia, but the group faced a contracting construction equipment market in China. In contrast, the business situation in the Southeast Asian countries and in India developed positively. Machinery produced at the Chinese plant is now increasingly being distributed to export markets such as Africa and South America as well.