The Wacker Neuson Group reported a marked rise in revenue and earnings during the first six months of 2018. Revenue for the first half of 2018 rose 8 per cent to a new record high of EUR 825 million (EUR 764 million in H1/17). Adjusted for currency effects, this corresponds to an increase of 12 per cent. Revenue growth was driven primarily by continued high levels of demand in the construction market and strong performance in the European agricultural sector. Bottlenecks among some suppliers prevented machines from being completed for customer orders and this had a dampening effect. Furthermore, unfavourable currency developments, in particular the US dollar’s weakness against the euro, resulted in negative translation effects.
In Europe, which is the Group’s largest sales market, revenue for the first half of 2018 rose 8 per cent to EUR 599 million (EUR 556 million in H1/17). This region’s share of Group revenue remained unchanged at 73 per cent. “Our strong performance in this region was fuelled by a buoyant construction market, positive development of our Kramer and Weidemann brands in the agricultural sector and growth in our services segment, which includes our maintenance and spare parts business,” explained Martin Lehner, CEO, Wacker Neuson SE.
Revenue for the Americas region rose 9 per cent to EUR 202 million (EUR 185 million in H1/17). The weak US dollar had a particularly strong impact in this region. When adjusted for currency effects, revenue rose 21 per cent. A high level of investment activity among rental chains in North America and strong sales of compact equipment had a positive effect on business. “Our skid steer loaders manufactured in the US are key products in our compact equipment portfolio, helping us to win more market shares in the region with other products such as excavators and dumpers,” added Lehner.
Revenue in Asia-Pacific rose 4 per cent to EUR 24 million (EUR 23 million in H1/17). The strong euro also squeezed growth figures here. Adjusted for currency effects, revenue rose 11 per cent.
”Due to the current healthy situation on international construction and agricultural markets, our most important target markets are intact and our order books are well filled,” continued Lehner. The company has confirmed its guidance for fiscal 2018 and expects revenue to rise by 8-11 per cent to reach between EUR 1.65 and EUR 1.70 billion (EUR 1.53 billion in 2017). The target corridor for the EBIT margin remains at 9-10 per cent. Uncertainties remain regarding the challenging situation with suppliers and future exchange rate developments, especially in relation to the US dollar.