DGAP-News: Wacker Neuson SE: Wacker Neuson makes a promising start to 2014

DGAP-News: Wacker Neuson SE: Wacker Neuson makes a promising start to 2014

DGAP-News: Wacker Neuson SE / Key word(s): Quarter Results/Forecast
Wacker Neuson SE: Wacker Neuson makes a promising start to 2014

13.05.2014 / 07:54

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Wacker Neuson makes a promising start to 2014

(Munich, May 13, 2014) Munich-based compact and light equipment
manufacturer Wacker Neuson reports further increases in revenue and profit
for the first quarter of 2014. In Europe, an early start to the
construction season and the continued economic upturn positively impacted
customers' willingness to invest. In light of its performance, the Group
confirms its forecast for 2014.


Revenue up 13 percent on previous year
Group revenue rose 13 percent on the same period last year to set a new Q1
record at EUR 291.6 million (Q1/13: EUR 257.1 million). The currencies of
many emerging markets and the US dollar again lost ground against the euro
in the first quarter of 2014. Discounting these adverse exchange rate
effects, revenue grew 17 percent relative to the prior-year period. "Our
business was bolstered by the steady upturn in the European construction
industry, a more upbeat mood across the European agricultural sector
coupled with a relatively mild winter and a general revival in the US
construction industry. We were able to strengthen our position in almost
all of our markets," says Cem Peksaglam, CEO of Wacker Neuson SE. Looking
at the regional breakdown, Europe accounted for the lion's share of overall
growth, with revenue up 20 percent compared with the first quarter of 2013.
When exchange rate fluctuations are discounted, the Americas (+6 percent,
in euro -2 percent) and Asia-Pacific (+5 percent, in euro -8 percent)
regions also recorded revenue increases.

Earnings per share more than doubled
At EUR 36.2 million, profit before interest, tax, depreciation and
amortization (EBITDA) rose 46 percent compared with the same period last
year. The EBITDA margin thus increased to 12.4 percent (Q1/13: EUR 24.8
million; 9.7 percent). Profit before interest and tax (EBIT) effectively
doubled to EUR 22.1 million (+99 percent), which corresponds to an EBIT
margin of 7.6 percent (Q1/13: EUR 11.1 million; 4.3 percent). The Group's
profit for the period amounted to EUR 14.3 million (Q1/13: EUR 6.4
million). At EUR 0.20, the earnings per share figure was 122 percent higher
than in the same period last year (Q1/13: EUR 0.09). This significant
improvement in earnings results from the Group's systematic implementation
of its long-term strategy, synergy effects across the Group and measures
introduced last year to increase process efficiencies and reduce costs.
Another factor was the comparatively weak performance recorded in the first
quarter of 2013.

Improvement in cash flow from operating activities
At EUR 18.9 million, cash flow from operating activities was positive in
the first quarter this year (Q1/13: EUR -20.3 million). Free cash flow
amounted to EUR -8.9 million (Q1/13: EUR
-39.3 million). The Group expects the full-year figure to be positive,
however.

Group strategy continues to pay dividends
The compact equipment segment proved to be a strong revenue driver in the
first quarter of 2014. Revenue was 21.0 percent higher than the previous
year. The Group is thus increasingly seeing the dividends of its pro-active
and targeted strategy of pushing the sale of excavators, wheel loaders,
dumpers and skid steer loaders through Wacker Neuson's existing
international sales network. Demand for Weidemann- and Kramer-branded
compact equipment was also strong. The light equipment segment continued to
grow, but the revenue figures were dented by exchange rate fluctuations
(actual +8 percent, in euro only +1 percent). Revenue from services, which
includes the repair and spare parts business, rose 20 percent compared with
the previous year. "We will continue to look for sales opportunities in
markets other than the construction and agriculture sectors and intend to
align our products and services more closely with the needs of local
customers," declared Peksaglam. The Group is focusing in particular on
strengthening its position as an innovation leader. "Research and
development - and the resulting innovations - are high priorities for our
Group, also due to their importance in achieving our climate protection
goals. Our aim is to ensure that we continue to deliver needs-driven,
ergonomic, environmentally sound and safe products as we move forward,"
underlines Peksaglam.

Wacker Neuson confirms its growth forecast for 2014 
The Group is optimistic about its prospects for the year ahead. "We assume
that we will increase revenue overall to between EUR 1.25 and 1.30 billion,
which would correspond to growth of between 8 and 12 percent on the
previous year," confirmed Peksaglam. "Increasingly positive signals from
Southern Europe, and - even more importantly - strong traction from
established markets in Europe and North America, plus the momentum from our
current strategy path are all set to benefit our business over the current
year." The EBITDA margin is expected to move between 13 and 14 percent
(2013: 13.2 percent), and the EBIT figure is expected to lie between 8 and
9 percent (2013: 8.2 percent). The Group has earmarked around EUR 85
million for investments in fiscal 2014 (2013: EUR 87 million).

2014 AGM
To give shareholders a reasonable stake in the Group's success over the
past year, the Executive and Supervisory Boards will propose a dividend of
EUR 0.40 per share at the upcoming AGM in Munich on May 27, 2014 (previous
year: EUR 0.30). The distribution ratio of around 46 percent based on Group
profit for 2013 is in line with the long-term dividend policy pursued by
the Group.


Table: Revenue and earnings

Key figures in EUR Million_Q1/14_Q1/13_Change
Revenue_291.6_257.1_+13.4%
EBITDA_36.2_24.8_+45.9%
EBITDA margin as a %_12.4_9.7_+2.8 PP
EBIT_22.1_11.1_+99.4%
EBIT margin as a %_7.6_4.3_+3.3 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
katrin.neuffer@wackerneuson.com 
www.wackerneuson.com

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                                          
             Germany                                                
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  
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267944 13.05.2014                                                      
 
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