Wacker Neuson SE — Earnings Release 2008

Nov 6, 2008

News Details

Ad-hoc | 6 November 2008 13:53

Wacker Construction Equipment AG: Wacker Construction Equipment AG to close British plant

Wacker Construction Equipment AG / Strategic Company Decision/Preliminary Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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(Munich, November 6, 2008) The Executive and Supervisory Boards of Wacker
Construction Equipment AG (ISIN DE000WACK012), to trade in future under the
name Wacker Neuson SE, have today decided to close their production plant
in Tredegar (Wales, Great Britain), resulting in the dissolution of the
Group company Wacker Neuson Rhymney Ltd. The Group will transfer production
of Wacker Neuson wheel dumpers to its plant in Linz (Austria) and close the
Welsh company soon thereafter.

The decision was driven by the downturn in global economic growth, which
escalated within an unusually short space of time into a global economic
crisis during the third quarter. As anticipated, this has had a sustained
effect on customer order patterns in the compact equipment segment. The
market for wheel dumpers, a product sold predominantly in Great Britain,
Spain and Switzerland, has felt the worst effects of the downturn. In the
first nine months of 2008, this product group saw order intake fall 48
percent on the same period last year, with figures for the overall Group
compact equipment business segment down approximately 18 percent at
September 30 (accumulated).

The closure of the Welsh plant is expected to greatly relieve pressure on
the company’s cost structure. Furthermore, the transfer of production
activities and their integration in the existing compact equipment plant in
Linz promise substantial savings for the company. The shutdown in Wales
will result in around 90 job losses. Group management is committed to
finding socially responsible solutions for all staff affected by the
forthcoming layoffs.

The Group expects the prevailing global economic conditions to continue to
negatively impact investment decisions and customer order patterns
throughout the rest of the year. In recent weeks, the company has
intensified its cost-saving measures in all areas to effectively
counteract the change in market trends. The closure of the Welsh plant is
therefore part of a planned package of measures aimed at cutting costs.

Already at the end of July, the company revised its forecast for the
overall Group and is now aiming to achieve sales of at least EUR 870
million and an EBITDA margin of at least 11 percent. Based on provisional
figures for the first nine months of the year, Group sales grew from EUR
504.2 million to around EUR 684 million as a result of the merger, while
profit before interest, tax, depreciation and amortization (EBITDA) after
Purchase Price Allocation rose from EUR 83.2 million to around EUR 91
million, corresponding to an EBITDA margin of over 13 percent. At around 74
percent, the equity ratio for the Group remains at a high level
at the end of the third quarter.

Additional information on Wacker Construction Equipment AG shares:
ISIN: DE000WACK012
WKN: WACK01
Admission: Official market / Prime Standard; Frankfurt Stock Exchange
Company headquarters: Germany

Contact partner:
Wacker Construction Equipment AG
Imre Szerdahelyi
Head of Corporate Communication
Preußenstr. 41
80809 Munich, Germany
Tel. + 49 - (0)89 - 354 02 – 251
E-mail: ir@eu.wackergroup.com
Internet: www.wackerneuson.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. None of the parties involved intends to register any portion of
the offering in the United States or to conduct a public offering of the
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').
06.11.2008 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.wackerneuson.com
ISIN: DE000WACK012
WKN: WACK01
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart

End of News DGAP News-Service

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