12.05.2021

Profit leap for Wacker Neuson

Telehandler manufacturer Wacker Neuson has published its first quarter results with higher sales and even stronger improvements in profitability.

Total revenues for the quarter increased to €434 million, six percent up on the same quarter last year. Growth came from the Compact Equipment - which includes telehandlers - where revenues were six percent higher at €241.6 million, and services which grew 10 percent to €99.4 million. Sales of Light Equipment were down one percent to €94.9 million.

Geographically, European growth was seven percent higher at €349.2 million, mainly due to higher sales in the German speaking region, Eastern Europe, the UK and Benelux. Sales in the Americas dropped 11 percent to €68.3 million, while sales in Asia Pacific more than doubled to €16.5 million.

Pre-tax profit for the period was more than 2.5 times higher than last year at €43.6 million, thanks to a favourable product mix, lower sales costs and lower interest cost. The company is forecasting full year revenues of €1.7 to €1.8 billion, so not quite the same levels as in 2019 but getting there.

Interim chief executive Kurt Helletzgruber, said: “The first quarter got the year off to an exceptionally successful start for us. We are back on our growth path with a sharp rise in profitability too. Our strong performance over these first three months gives us an excellent foundation for achieving our goals for the year. At the same time, demand for our products continues to develop dynamically.”

Vertikal Comment

This is an exception start to the year for Wacker Neuson and should provide a first rate start for the two new senior managers when they come on board at the end of the month - see: New CFO for Wacker Neuson.

The company still has much it can do to increase its sales on a global basis and ought to be looking at breaking the €2 billion barrier by 2022.