11.11.2021

Positive quarter from Wacker Neuson

German telehandler and equipment manufacturer Wacker Neuson has reported positive third quarter results.

Starting with the nine months to the end of September, total revenues increased 17 percent to €1.38 billion, while pre-tax profits increased two and half fold to €144.8 million.
Net debt was slashed 82 percent from €276.1 million to €48.3 million.

Moving on to the third quarter, total revenues improved 18.1 percent to €461.4 million, while pre-tax profits almost doubled to €44.7 million. European sales - which account for 79 percent of the group’s revenues - rose 16.8 percent to €362.2 million, with Germany, Austria and Switzerland providing most of the growth. The business also reported double digit increases in the UK and France. Revenues in the Americas grew 27.9 percent to €84.3 million, with Canada finally starting to exceed pre-Covid levels. Sales in Asia/Pacific remained flat at around €14.9 million.

The company said material shortages and the resulting interruptions to production continue to hinder growth, but in spite of this, and the rising prices of raw material, components and shipping, it has increased its full year revenue projections to between €1.77 and €1.8 billion.

Chief executive Karl Trafl, said: “The third quarter was a successful but also very difficult three months for us. Supply chain strains and repeated disruptions were major challenges for our teams, suppliers and business partners – and there are still no signs of easing. Our enormous efforts have paid off, however, and I would like to thank everyone who has contributed to this strong result.”

Vertikal Comment

Another very strong set of numbers from Wacker Neuson. Although revenues are not quite back to 2019 levels, profits are significantly higher than they were then, and the balance sheet much stronger.

The outlook remains very positive for the company, but looking forward the real test will be how well it manages the supply chain. This also applies to its competitive position, if it can maintain its quality and do a better job with securing componentry than some of its big competitors, it stands a real chance of strongly outperforming the market. And if it does so it should easily exceed revenues of €2 billion in 2022, while achieving record profit levels.

All very positive.