Compact equipment manufacturer 1651 Wacker Neuson reports an upturn in ITS business in the third quarter of 2013. This comes despite the difficult economic climate. The firm’s revenue for the third quarter of 2013 was 8.6% higher than the same period in 2012 and reached €276.3 million, compared €254.5 million in the previous year. Taking into account currency fluctuations, this represents an increase of 13% according to the firm. “When viewed against negative trends in certain markets, we can be satisfied with this growth,” said Cem Peksaglam, CEO of Wacker Neuson SE. “We reported a 13% rise in revenue in Europe alone in the third quarter and were able to expand our market share, in many cases in markets that were actually contracting,” he added.
The Group’s corporate strategy continues to pay dividends. “We are taking targeted measures to expand our presence in Europe and the Americas and are also broadening our industry focus. In addition to our core business, we are expanding our reach in other markets. This is the right path forward for the Group, as demonstrated by the 21% rise in compact equipment revenue relative to the previous year,” said Peksaglam. The services segment reported a 7% increase on the previous year. Revenue from the light equipment segment fell by 2% in Q3. The light equipment business was particularly hard hit by currency fluctuations. When adjusted to discount currency fluctuations, revenue generated by this segment increased by 5%.
The Group reported a favorable rise in earnings in the third quarter. At €41.2 million, profit before interest, tax, depreciation and amortization (EBITDA) increased by 21% relative to the €34.1 million of the previous year.
The company’s financial situation is said to remain strong. Net financial debt amounted to €214 million, which is lower than the €255 million posted for the first half of 2013. At 23%, gearing remains below the industry average. Due to a drop in investments over 2013, positive free cash flow of €255 million 22 million was generated in the first nine months of 2013.
“We expect current positive business trends to continue into the coming weeks. Since currency trends dampened our revenue in the third quarter, however, we remain uncertain as to how further fluctuations in Q4 will impact the Group. That said, we still expect to achieve our forecast for the current year,” said Peksaglam. The Group still expects revenue for 2013 to rise to around €1.2 billion compared with €1.09 billion in 2012 and the EBITDA margin to exceed 13%.
Key emerging markets such as China, India, Mexico, Turkey and Russia are opening up new market opportunities. Wacker Neuson aims to capitalise on this growth potential and is increasing ITS efforts to distribute products and service tailored to local market needs. The core markets of Central Europe and North America also offer further opportunities for growth.
The Group’s corporate strategy continues to pay dividends. “We are taking targeted measures to expand our presence in Europe and the Americas and are also broadening our industry focus. In addition to our core business, we are expanding our reach in other markets. This is the right path forward for the Group, as demonstrated by the 21% rise in compact equipment revenue relative to the previous year,” said Peksaglam. The services segment reported a 7% increase on the previous year. Revenue from the light equipment segment fell by 2% in Q3. The light equipment business was particularly hard hit by currency fluctuations. When adjusted to discount currency fluctuations, revenue generated by this segment increased by 5%.
The Group reported a favorable rise in earnings in the third quarter. At €41.2 million, profit before interest, tax, depreciation and amortization (EBITDA) increased by 21% relative to the €34.1 million of the previous year.
The company’s financial situation is said to remain strong. Net financial debt amounted to €214 million, which is lower than the €255 million posted for the first half of 2013. At 23%, gearing remains below the industry average. Due to a drop in investments over 2013, positive free cash flow of €255 million 22 million was generated in the first nine months of 2013.
“We expect current positive business trends to continue into the coming weeks. Since currency trends dampened our revenue in the third quarter, however, we remain uncertain as to how further fluctuations in Q4 will impact the Group. That said, we still expect to achieve our forecast for the current year,” said Peksaglam. The Group still expects revenue for 2013 to rise to around €1.2 billion compared with €1.09 billion in 2012 and the EBITDA margin to exceed 13%.
Key emerging markets such as China, India, Mexico, Turkey and Russia are opening up new market opportunities. Wacker Neuson aims to capitalise on this growth potential and is increasing ITS efforts to distribute products and service tailored to local market needs. The core markets of Central Europe and North America also offer further opportunities for growth.
