Wacker Neuson SE — Earnings Release 2007

Nov 15, 2007

News Details

Corporate | 15 November 2007 07:41

Wacker Construction Equipment AG:

Wacker Construction Equipment AG / Quarter Results/Forecast

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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Wacker Construction Equipment AG increases earnings forecast for 2007

Q3 performance on target – strong sales growth in the Europe, Americas and
Asia regions

(Munich, November 15, 2007) Wacker Construction Equipment AG is increasing
its forecast for profit before interest, tax, deprecation and amortization
(EBITDA) for fiscal 2007. The forecast was revised following the initial
consolidation of Neuson Kramer Baumaschinen AG financial figures on October
1, 2007. Instead of a figure between EUR 110 and 115 million, the company
is now expecting at least EUR 120 million (previous year: EUR 100.2
million). Wacker Construction is also upping its projected revenue. This
previously lay between EUR 655 and 670 million, but the company is now
anticipating sales of at least EUR 720 million for the current fiscal year
(previous year: EUR 619.3 million). In addition, the company confirms that
it is on target for its fiscal 2007 forecasts excluding Neuson Kramer
Baumaschinen.

Sales for first nine months reach record level
Wacker Construction Equipment AG sales reached a record level of EUR 504.2
million (previous year: EUR 470.6 million) after the first nine months of
2007 (+7.1 percent). Discounting exchange rate fluctuations, the increase
amounted to 10.2 percent. 'Business again progressed according to plan in
the third quarter of 2007, reflected in particular by the improved
distribution of sales across all regions,' adds Dr. Georg Sick, CEO of
Wacker Construction Equipment AG. All three regions, Americas, Asia and
Europe, reported solid sales growth in the third quarter (July 1 through
September 30). Sales in Europe rose 7.0 percent during the third quarter to
reach EUR 106.6 million (previous year: EUR 99.6 million). Asia recorded an
11.0 percent increase to EUR 7.5 million (previous year: EUR 6.7 million).
After a stable second quarter, the Americas went on to report growth of 0.3
percent to a total of EUR 48.5 million (previous year: EUR 48.3 million)
despite uncertainty on the American real estate market. However, adjusted
to reflect exchange rate fluctuations, sales in the Americas actually rose
4.0 percent in the first nine months. It is also worth noting that,
adjusted for exchange rate fluctuations, sales in the USA were only 0.4
percent below the record level of the previous year at the end of the first
nine months of the year.

Impacted by one-off items, profit before interest, tax, depreciation and
amortization (EBITDA) remained at the previous year’s level, with profit
for the period increasing 4.4 percent to EUR 42.7 million as a result of
taxation changes (previous year: EUR 40.9 million).

Leading global supplier of light and compact equipment
'Now completed, the merger with Neuson Kramer Baumaschinen AG has created a
major global player with a comprehensive portfolio of light and compact
equipment,' emphasizes Sick. Neuson Kramer Baumaschinen AG’s compact
equipment has previously been almost exclusively marketed in Europe. 'The
compact portfolio is at an early stage of the lifecycle. By synergizing
this offering with our established global sales network, we will be able to
extend many products already proven in Europe to other markets, and to the
USA during the first half of 2008 in particular,' explains Sick. The period
under review for Neuson Kramer Baumaschinen AG has been reduced by one
month as the company decided to bring its deferred fiscal year in line with
the calendar year. So although the figures reported only relate to eight
months, they reveal strong performance. Sales (Expenditure Format) were up
24.8 percent in comparison with the first nine months of the previous year,
increasing from EUR 195.0 million to EUR 243.4 million. Around 95 percent
of sales was generated in Europe. Profit before interest, tax, depreciation
and amortization (EBITDA) grew 22.2 percent to EUR 45.1 million (previous
year: EUR 36.9 million).

Increase in sales and EBITDA forecast
'We expect business to develop in line with projections during the fourth
quarter, which means we are on target for our forecast excluding Neuson
Kramer Baumaschinen AG,' adds Sick. Following initial consolidation of
Neuson Kramer Baumaschinen AG on October 1, 2007, the company revised its
sales forecast upwards to at least EUR 720 million and upped profit before
interest, tax, depreciation and amortization (EBITDA) to at least EUR 120
million, adjusted to discount one-off items resulting from the acquisition
price allocation according to IFRS (initial consolidation). In addition,
the company anticipates that fiscal 2008 – the first full fiscal year for
the future Wacker Neuson SE – will see its revenue exceed the billion-euro
mark. At the meeting on November 13, 2007 the Executive and Supervisory
Board decided to open a new subsidiary in India.

Preliminary key figures for Q3 (January 1 through September 30), fiscal
2007
2007
€ million 2006
€ million Difference

Sales 504.2 470.6 + 7.1%
By region
- Europe 329.8 291.1 + 13.2%
- America 156.2 161.6 - 3.4%
- Asia 18.2 17.9 + 2.0%
By business segment1
- Light equipment 319.5 304.3 + 5.0%
- Compact equipment 70.2 67.2 + 4.4%
- Services 114.5 99.1 + 15.6%
EBITDA 83.2 83.2 0.0%
EBIT 62.7 65.7 - 4.5%
EBT 62.1 64.7 - 4.0%
Profit for the period 42.7 40.9 + 4.4%
Employees 2.961 2.824 + 4.9%
1Consolidated sales after discounts

The nine-month report is available under Investor Relations at
www.company.wackergroup.com.

Your Contact:

Wacker Construction Equipment AG Wacker Construction Equipment AG
Imre Szerdahelyi Katrin Neuffer
Head of Corporate Communication Investor Relations Manager
Preußenstr. 41 Preußenstr. 41
80809 Munich, Germany 80809 Munich, Germany
Phone: +49 - (0)89 - 354 02 - 251 Phone: +49 - (0)89 - 354 02 - 173
Fax: +49 - (0)89 - 354 02 - 298 Fax: +49 - (0)89 - 354 02 - 298
ir@eu.wackergroup.com ir@eu.wackergroup.com
www.wackergroup.com www.wackergroup.com

Disclaimer:

This publication constitutes neither an offer to sell nor an invitation to
buy securities.

This document does not constitute an offer of securities for sale or a
solicitation of an offer to purchase securities in The United States. The
shares in Wacker Construction Equipment AG (the 'Shares') may not be
offered or sold in the United States absent registration or an exemption
from registration under the U.S. Securities Act of 1933, as amended. It is
not intended to register any Shares in the United States or to conduct an
offering of Shares in the United States.

This document is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii)
high net worth entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as 'relevant persons').
15.11.2007 Financial News transmitted by DGAP

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Language: English
Issuer: Wacker Construction Equipment AG
Preußenstr. 41
80809 München
Deutschland
Phone: +49 - (0)89 - 354 02 - 0
Fax: +49 - (0)89 - 354 02 - 390
E-mail: info@eu.wackergroup.com
Internet: www.wackergroup.com
ISIN: DE000WACK012
WKN: WACK01
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart

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