13.11.2017

Wacker Neuson breaks records

Telehandler and light equipment manufacturer Wacker Neuson has posted record results.

Starting with the nine months year to date numbers, revenues were 13 percent higher at €1.14 billion, a new record. Sales increased in all regions, with Europe up 10 percent to €836 million, while the Americas bounced back from last year’s 25 percent drop, with a 26 percent gain taking revenues to €273 million. Meanwhile Asia came in four percent lower at €33 million in spite of a good third quarter.

Compact Equipment, which includes telehandlers, is now almost twice the size of the Light Equipment division, with sales increasing 15 percent to €601 million, while Light Equipment sales improved 11 percent to €326 million. Pre-tax profits for the nine months were 49 percent higher at €97.1 million. Net debt at the end of the period was 13 percent lower on the year at €224 million.

Moving on to the third quarter, revenues improved 20 percent to €378.7 million with Europe up 17 percent to €280 million, the Americas 32 percent higher at €83 million and Asia/Pacific up 14 percent to €10 million. Pre-tax profits for the quarter were almost 2.5 times higher at €43.2 million.

The new chief executive Martin Lehner - who took over at the start of September - said: “There is no doubt that we were buoyed by strong markets in North America and Europe. However, it was the successful implementation of our growth strategy that really enabled us to outgrow the market. The need among international rental companies to catch up on equipment stock levels fuelled a significant increase in sales of light equipment, especially of generators and light towers.”

“Growth in the compact equipment segment was driven by our ongoing success in the material handling business field in the European construction and agricultural sectors as well as by an expected upswing in sales of skid steer loaders manufactured in North America. Our order books are full and we expect business to continue on its positive trajectory through the end of the year."

Vertikal comment

This is an excellent set of numbers from Wacker Neuson which is quietly gathering strength in the telehandler market as more buyers appreciate the quality that the company builds in. However higher sales are also related to the ongoing strength at the smaller end of the telehandler market. The company is a little vulnerable in that it only offers a limited product range in this sector.

Another change/opportunity on the horizon is the ending of its telehandler supply agreement with Claas which looms late next year, and the replacement as a preferred supplier for John Deere dealers, initially in Europe. While one deal is a badged OEM programme, the other is a simple recommendation, which will depend on convincing John Deere dealers that Wacker Neuson is a better product range/deal than their current suppliers.

All said and done this is a great first quarter for the new chief executive to report on. The company is now expecting to come in at the top end of its initial forecasts, but in all likelihood it will exceed that when it posts full year revenues likely to top €1.5 billion.