12.11.2015

More details from Wacker Neuson

Wacker Neuson has now published its full third quarter report confirming its initial results, but showing a steep decline in profits

As we already reported nine month revenues were up almost nine percent at €1.02 billion, thanks to a strong first half and favourable exchange rates. Profit before tax however was almost 23 percent lower at €76.8 million, due entirely to the third quarter.

Third quarter revenues were down almost two percent to €311million, thanks to slower sales of light equipment, particularly in Canada, Australia, Brazil and Russia due to lower oil & gas and other raw material prices. Pre-tax profits for the period were €13.9 million a fall of over 64 percent on last year’s record results.

Net debt at the end of September was €241 million, compared to €198 million this time last year, although overall gearing improved. To see the initial report with more details on revenues etc and comment -Click here

Chief executive Cem Peksaglam said: “Bolstered above all by strong performance over the first six months of the year, this is a good figure in light of the difficult conditions that are affecting the construction equipment industry as a whole. Demand for light equipment in the raw material and energy sectors declined at an unexpectedly sharp rate in the third quarter. Raw material prices are extremely low at present, making it almost impossible for companies to extract oil and gas profitably in North America. This has brought the industry more or less to a standstill. Difficult market conditions in South America compounded the situation here”.

“In addition, declining demand in the European agricultural equipment sector together with disappointing levels of demand in markets such as France, Russia and Australia had an unexpectedly strong impact on our business”.

Vertikal Comment

Our initial comment made in October is even more valid in light of these numbers.