DGAP-News: Wacker Neuson SE: Wacker Neuson remains on expansion path in 2014

DGAP-News: Wacker Neuson SE: Wacker Neuson remains on expansion path in 2014

DGAP-News: Wacker Neuson SE / Key word(s): Final Results/Forecast
Wacker Neuson SE: Wacker Neuson remains on expansion path in 2014

31.03.2014 / 07:55


Wacker Neuson remains on expansion path in 2014

(Munich, March 31, 2014) In spite of difficult market conditions,
Munich-based light and compact construction equipment manufacturer Wacker
Neuson managed to further increase Group revenue and profitability in 2013.
Having reached its targets for 2013, Wacker Neuson now aims to remain on
this growth path through 2014.

EUR 1.16 billion in revenue 
In keeping with its growth strategy, the Group focused on increasing market
penetration of light and compact equipment in its core European and US
markets, as well as actively developing specific new markets. Group revenue
rose 6 percent to EUR 1,159.5 million (2012: EUR 1,091.7 million). These
figures were dampened by currency fluctuations. Adjusted to discount these
effects, revenue would have risen 8 percent. "We were able to further
expand our market position, both in German speaking countries and abroad,
even managing to report growth in partly declining markets. This confirms
that our strategy is yielding the right results," explains Cem Peksaglam,
CEO of Wacker Neuson SE. This growth was powered by all business segments.
The Americas region experienced the largest rise in revenue, with an
increase of 8 percent on the previous year (adjusted to discount currency
fluctuations: 12 percent). The Group's largest market, Europe, also
recorded an increase in revenue, with figures 6 percent higher than the
previous year. Revenue in the light equipment segment rose by 2 percent
compared with the previous year (adjusted to discount currency
fluctuations: 6 percent), while the compact equipment segment grew by 12
percent and the services segment (including repair and replacement) by 4
percent. The first quarter of 2013 got off to a weak start due to harsh
weather conditions, which had a dampening effect on demand. However, the
Group reported a significant rise in both revenue and profit relative to
the previous year for each of the subsequent quarters. In Q4 2013, revenue
rose 6 percent on Q4 2012 (adjusted to discount currency fluctuations: 10
percent), increasing from EUR 279.1 million to EUR 297.1 million.

Improved profitability
Group profit before interest, tax, depreciation and amortization (EBITDA)
rose 8.3 percent to reach EUR 153.4 million. The EBITDA margin also
increased to 13.2 percent (2012: EUR 141.7 million; 13.0 percent). Wacker
Neuson's success in this area was largely attributable to various,
systematic efficiency-focused measures and Group synergies.

Profit before interest and tax (EBIT) increased 12 percent to EUR 94.7
million, corresponding to an EBIT margin of 8.2 percent (2012: EUR 84.9
million; 7.8 percent). At EUR 28 million, Q4 2013 EBIT for the Group was an
impressive 79 percent higher than the previous Q4 2012 figure (Q4 2012: EUR
16 million).

The Group's net profit for the year amounted to EUR 61.2 million (2012: EUR
54.1 million). This means that earnings per share are 13 percent higher at
EUR 0.87 (2012: EUR 0.77).

Proposal for the appropriation of net profit
In order to give shareholders reasonable participation in the company's
success over the past year, the Executive and Supervisory Boards will be
proposing a dividend payout of EUR 0.40 per share at the AGM on May 27,
2014 (2012: EUR 0.30). The distribution ratio of approximately 46 percent
of Group profit for the period is in line with the Group's long-term
dividend policy (2012: 39 percent).

Positive free cash flow
In 2013, cash flow from operating activities rose significantly to EUR
132.6 million(2012: EUR 13.6 million). This generated a positive free cash
flow of EUR 56.7 million (2012: EUR -86.3 million).

Further internationalization
Economic power is rapidly growing in many emerging nations. Here also,
rising salary levels are driving a switch to more productive construction
equipment and machinery. Infrastructure expansion and improvement projects
also offer great business opportunities for Wacker Neuson. "Our long-term
aim is to increase the revenue share of markets beyond Europe, which
currently account for 29 percent of total revenue. We would like to see
this figure rise to around 50 percent. Emerging markets promise great
potential ( at the moment they account for around one eighth of our
revenue," outlines Peksaglam.

Wacker Neuson is already moving in this direction, as proven by
developments in its compact equipment segment. "Our strategy to extend our
existing compact sales platform beyond Europe to reach international
markets is already paying dividends. Here we achieved compact revenue
growth outside Europe of 40 percent in 2013," Peksaglam continues. The
Group sees particular potential in emerging markets in South America and
South-East Asia, as well as in China, Russia and Turkey.

Strategy based on sustainable growth
"We intend to continue to benefit from megatrends and expect global
population growth, increasing urbanization, above-average growth in
emerging economies and rising mechanization in construction and
agricultural industries to drive demand for our products," says Peksaglam.
At Wacker Neuson, sustainable profitable growth also involves measuring and
managing soft factors that will secure the Group's success in the long
term. To ensure this, the Group has started establishing a professional
sustainability management system. Wacker Neuson will be deploying
environmental and energy management systems at its various sites in the
coming years. This will allow the Group to collect and evaluate data (for
example, energy efficiency values) and implement suitable measures for
improvement. The Group will be publishing its first sustainability brochure
called "Thinking ahead. Sustainability at the Wacker Neuson Group."
together with the 2013 annual report. It plans to release its first
Group-wide sustainability report in 2015.

Further revenue growth expected in 2014
Wacker Neuson remains optimistic for 2014. "If the positive trends recorded
in the first few weeks and months continue throughout the year, we can
expect revenue to reach between EUR 1,250 and 1,300 million, with an EBITDA
margin of 13 to 14 percent," states Peksaglam. The EBIT margin is expected
to lie between 8 and 9 percent. These figures are not adjusted to discount
currency fluctuations. For fiscal 2014, Wacker Neuson has earmarked around
EUR 85 million in total for investments (2013: EUR 87 million).

Table: Revenue and earnings

Figures in EUR million_Q4/13_Q4/12_Change_FY/13_FY/12-Change
EBITDA margin as a %_14.3%_11.2%_+3.1 PP_13.2%_13.0%_+0.2 PP
EBIT margin as a %_9.4%_5.6%_+3.8 PP_8.2%_7.8%_+0.4 PP

Your contact partner:
Wacker Neuson SE 
Katrin Yvonne Neuffer
Head of Corporate Communication /
Investor Relations
Preussenstrasse 41 
80809 Munich, Germany 
Phone: +49-(0)89-35402-173

About Wacker Neuson: The Wacker Neuson Group is a leading manufacturer of
light and compact equipment with over 40 affiliates, 140 sales and service
stations and more than 12,000 sales and service partners across the globe.
The Group can trace its roots back to 1848. Wacker Neuson is the partner of
choice among professional users in construction, gardening, landscaping and
agriculture, as well as among municipal bodies and companies in industries
such as recycling and energy. It also offers a global spare parts service.
The Wacker Neuson Group includes the product brands Wacker Neuson, Kramer
and Weidemann. In 2013, the Group achieved revenue of EUR 1.16
billion and employed over 4,100 people worldwide.

End of Corporate News


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Language:    English                                                
Company:     Wacker Neuson SE                                       
             Preußenstr. 41                                         
             80809 München                                          
Phone:       +49 - (0)89 - 354 02 - 0                               
Fax:         +49 - (0)89 - 354 02 - 390                             
E-mail:      info@wackerneuson.com                                  
Internet:    www.wackerneuson.com                                   
ISIN:        DE000WACK012                                           
WKN:         WACK01                                                 
Indices:     SDAX                                                   
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,  
             München, Stuttgart                                     
End of News    DGAP News-Service  
260494 31.03.2014                                                      
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