The Munich-based international light and compact equipment manufacturer Wacker Neuson reported a record rise in revenue for the first quarter of 2017. According to a company release, adjusted profit before interest and tax (EBIT) increased significantly. At the close of Q1, order intake and backlog showed a clear rise over the figures posted for the prior-year period.
“The year has got off to a very promising start for our Group. The investment mood among many national and international customers in most of our target industries was very positive. This pushed our revenue to a new record high for a first quarter,” explains Cem Peksaglam, CEO, Wacker Neuson SE. Revenue for the first quarter of 2017 rose to EUR 338.5 million and was thus 7 per cent higher than the previous year (EUR 316.4 million). Adjusted to discount currency effects, this corresponds to an increase of 6 per cent.
The Europe region, which accounts for the largest share of Group revenue at 73 per cent, reported a 9-per cent increase in Q1 2017 revenue relative to the previous year. Revenue in the Americas region grew even more rapidly than in Europe, with a 13-per cent increase relative to the previous year. However, the Group reported a drop in revenue in Asia-Pacific (accounting for roughly 3 per cent of total revenue). Revenue for the region fell by 45 per cent relative to the previous year. This was due to a one-off effect in the first quarter of 2016 linked to dealers in China stocking up on compact equipment, which almost doubled revenue for the country at that time. Business in Australia and New Zealand developed positively for the first time in a long period, with the two countries posting high double-digit revenue growth for the first quarter of 2017.
Revenue in the light equipment segment for Q1 2017 was over 7 per cent higher than the prior-year figure. Sales of compaction equipment were particularly strong in Europe, where the Group holds several market-leading positions. Revenue in the compact equipment segment increased by almost 7 per cent. In the services segment, which includes the repairs and spare parts business, revenue rose 8 per cent over the prior-year quarter.
“We expect the projected positive trend in our business to continue throughout 2017. Our optimism is strengthened by the current healthy order situation, positive trends in our core markets of Europe and the US, a more upbeat investment mood in the agricultural sector, growing business momentum in South America and a gradual recovery in markets dependent on the price of raw materials such as Australia,” elaborates Peksaglam.