Wacker Neuson Drops After Cutting 2012 Ebitda Margin Forecast

Wacker Neuson SE (WAC), a German manufacturer of construction equipment and machines, dropped the most in more than eight months after reducing its earnings forecast as the euro crisis discourages customers.

The shares fell as much as 7.2 percent to 10.90 euros, the steepest intraday decline since November, and were trading down 4.5 percent at 4:58 p.m. in Frankfurt.

The margin for earnings before interest, taxes, depreciation and amortization to sales will be 13 percent to 15 percent this year, compared with a previous forecast of at least 15 percent, the company said in a statement today. “Uncertainties across markets coupled with the euro crisis are curbing investments among European customers,” Wacker Neuson said. Europe accounted for 73 percent of sales in 2011.

“The company will not rally in the next six months,” Dominik von Podewils, a London-based analyst at Berenberg Bank, said in a phone interview today. “I expect a lot of downgrades in the manufacturing industry in Europe for the second half of 2012.”

Wacker Neuson’s second-quarter Ebitda fell to 37.3 million euros ($45.5 million) from 45.7 million euros a year earlier. The Ebitda margin declined 4 percentage points to 13.1 percent.

In May, affiliate Wacker Neuson Linz GmbH moved to its new facility in Horsching, Austria, causing delays in compact equipment deliveries in June and increasing process and logistics expenses, according to the statement.

Wacker Neuson, based in Munich, reconfirmed its full-year revenue forecast of about 1.1 billion euros.

--Robert Valpuesta, David Risser.

To contact the reporter on this story: Myriam Wecker in Frankfurt at mwecker2@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net

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