Wacker Neuson SE profitable in H1 as order book shows strong signs of revival

Order intake has positive impact on capacity utilization
(Munich, July 26, 2010) According to provisional figures, the Wacker Neuson Group
managed as expected to increase Q2 revenue relative to both the first quarter of the
current fiscal year and the same quarter last year and post positive earnings once
again. In addition, the Group reports a healthy revival of order intake. Order backlog
for compact equipment at the end of June 2010 was 350 percent higher than the
corresponding figure for the same period last year.
Further increase in revenue and earnings in Q2
Although sales in the first quarter were squeezed by a harsh winter in the US and Europe,
demand in the second quarter picked up further as expected and as indicated at the world’s
largest construction fair bauma in April. According to provisional figures, quarterly revenue
for the Wacker Neuson Group is expected to reach EUR 205.3 million, up 36.6 percent on
the first quarter and 31.2 percent on the same period last year (Q1 2010: EUR 150.3 million,
Q2 2009: EUR 156.5 million). These figures reflect the positive trend in the light equipment
segment in particular. The forward-looking cost-efficiency measures introduced back at the
end of 2008 also contributed – as anticipated – to the results. The provisional Q2 profit
before interest, tax, depreciation and amortization (EBITDA) amounts to around EUR 27.0
million (previous year: EUR 13.4 million). Provisional earnings before interest and tax (EBIT)
are posted at around EUR 17.2 million (previous year: EUR 3.2 million) with provisional Q2
profit for the period after tax and minority interests set at around EUR 10.9 million (previous
year: EUR 1.4 million). The Wacker Neuson Group was thus able to more than compensate
for Q1 losses (posted at EUR 5.7 million) and has returned to profit as planned in the first
half year. The company remains on a strong financial footing with an equity quota of 79
percent and a low net financial debt.
Order backlog up 350 percent on previous year’s figure
Accumulated order income for compact equipment – fuelled by the construction and
agricultural industries – almost doubled in the first half-year of 2010 relative to the same
period last year. By the end of June 2010, order backlog was even 350 percent higher than
Wacker Neuson SE, Preussenstr. 41, 80809 Munich, Germany, www.wackerneuson.com
Press release
2
the figure reported for 2009. This upturn was, however, also accompanied by delivery
bottlenecks among certain suppliers and this affected the entire industry. The Group
assumes that pressure will ease further and products will increasingly be ready for delivery
on time. “Our production facilities for light and compact equipment such as wheel loaders,
dumpers and excavators show a healthy level of capacity utilization. In addition, our recent
alliance with Caterpillar has the effect of accelerating construction plans for our new
production facility in Hrsching, near Linz in Austria,” explains Dr. Georg Sick, CEO of
Wacker Neuson SE. Additional reasons for the Group to feel optimistic for fiscal 2010 overall
is the demand for light equipment that remains strong in Europe, the US and Asia.
Global perspective underpins future prospects
Under the umbrella of a strategic alliance recently concluded between Wacker Neuson SE
and Caterpillar Inc., Peoria, US, both companies have agreed to collaborate over the next 20
years. Starting in 2011, Wacker Neuson will exclusively develop mini excavators up to a total
weight of three tons and manufacture these at Wacker Neuson’s plant in Austria. Caterpillar
will use these machines to meet worldwide demand for its mini excavators (with the
exception of Japan). “Caterpillar has the world’s strongest distribution network. This strategic
alliance allows us to increase production volumes, reduce manufacturing costs and
strengthen the competitive positions of both companies in what is a highly fragmented
market,” continues Sick. The Group is looking to the future with optimism. “Mid-term, we are
planning to more than double unit production in this product class. And this strategic alliance
will also impact positively on our development and manufacturing competencies,” concludes
Sick.