Wacker Neuson improves outlook as revenues climb 11% in Q2 2017
Compact equipment manufacturer Wacker Neuson reprots a record revenue of $499m in Q2 2017, while profit before interest and tax (EBIT) rose 41%
Compact equipment manufacturer Wacker Neuson has reported a record revenue of $499m (EUR 425m) in Q2 2017 – equivalent to an increase of 11% relative to $448m (EUR 381m) in Q2 2016.
The group’s profitability also improved significantly, with profit before interest and tax (EBIT) rising 41% to $54.8m (EUR 46.7m), compared with $39.0m (EUR 33.2m) the previous year, and resulting in an overall EBIT margin of 11%, versus 8.7% previously.
Revenue for H1 2017 also climbed by 9% to $897m (EUR 764m), up from $820m (EUR 698m) in H1 2016. EBIT also increased by 20% compared to the previous year, while the margin amounted to 8.0%, against 7.3% previously.
Bolstered by the results, the company has now raised its revenue forecast for the year. The company has raised its revenue forecast for the year to between $1.7bn and $1.76bn, or an increase of between 7% and 10%, up from between $1.64bn and $1.7bn, or between 3% and 7%.
Cem Peksaglam, CEO of Wacker Neuson, noted: “We are positive about the second half of 2017 due to the healthy order situation and positive mood across all key markets, and the second half of the year got off to a great start.”
The revenue gains in Q2 2017 were highest in the Americas, where the group sae a 32% rise, coupled with a 23% increase across the first six months of the year – led by its skid steer loaders, wheel loaders and telescopic handlers.
The company is also seeing strong results in compaction segment through its alliance with Hamm.
Q2 revenues also increased by 65% in Asia-Pacific, though that region only accounts for 3% of sales.
Looking forward, the company is building a new factory near Shanghai, and Cem Peksaglam, CEO of Wacker Neuson, notes: “Reflecting our strategy to extend our international reach, we recently entered into two long-term distribution partnerships.
“In South Korea, we have teamed up with Everdigm, a manufacturer of construction equipment, mining equipment and special vehicles; while in Japan, we have started a distribution partnership with Iseki, a manufacturers for tractors, agricultural machines and gardening equipment.”
Wacker Neuson also announced a strategic alliance between its group member Kramer and the global agricultural machine manufacturer John Deere in July, setting the company on course to further expand its compact agricultural equipment footprint.