08.08.2016

Better quarter for Wacker Neuson

Telehandler and light equipment manufacturer Wacker Neuson has reported a better second quarter after a tough start to the year.

Revenues for the first six months were one percent lower at €697.8 million, while pre-tax profits plummeted 24 percent to €47.4 million.

In the second quarter revenues were roughly the same as last year’s record breaking quarter at €381.4 million, thanks to a strong pick up in Europe- up more than seven percent, particularly Northern and Central Europe. The North American market fell over 10 percent, although som e of the pain was dissipated a little by a favourable exchange rate. Revenues in the Asian Pacific market dropped 24 percent due largely to slowness in Australia.
As a result of the uncertainty the company has marginally lowered is full year forecasts.

Chief executive Cem Peksaglam said: “We have every reason to be satisfied with our performance in the second quarter of 2016 in light of the ongoing crises in the agricultural and energy sectors in our home markets of North America and Europe, as well as increasing uncertainty in the UK, South Africa, Poland, Russia and Turkey, coupled with the difficult situation in South America and Australia. The group generates a large share of its revenue in Europe. Here, revenue for the second quarter rose 6 percent compared with the previous year. Revenue in the Americas and Asia-Pacific regions fell by 14 and 31 percent respectively compared with the previous year.”

“These challenging market conditions are having a significant impact on our customers across the globe and require exceptional initiative and flexibility from us. High volatility and growing uncertainties in the ag and construction business, increased risks in some European markets and the persistent market weaknesses in North America and Australia, forced us to lower our expectations for the second half“, explains Peksaglam.