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Wacker Neuson SE — Earnings Release 2007
Apr 10, 2008
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Earnings Release
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Corporate | 10 April 2008 09:39
Wacker Construction Equipment AG: Wacker Construction Equipment AG remains on growth path
Wacker Construction Equipment AG / Final Results
Announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
Wacker Construction Equipment AG remains on growth path
Record year for the company and merger partner Neuson Kramer
(Munich, April 10, 2007) Wacker Construction Equipment AG experienced
strong growth in fiscal 2007, achieving the best results in company
history. In a year that saw Wacker go public, sales increased from EUR
619.3 million to EUR 742.1 million, while profit before interest, tax,
depreciation and amortization (EBITDA) rose from EUR 100.2 million to EUR
119.6 million, discounting purchase-price allocation. These values include
figures from the fourth quarter (October 1 to December 31) for the
company’s merger partner Neuson Kramer Baumaschinen AG, which also achieved
a record year.
Best year in company history
'Thanks to robust demand for our products and services, both Wacker
Construction Equipment AG and Neuson Kramer Baumaschinen AG set new sales
and earnings records in fiscal 2007,' explains Dr. Georg Sick, Group CEO
and President, at today’s press conference to present the company’s
financial results in Munich. He went on to emphasize that management is
satisfied with the company’s performance and the fact that it met its
targets. Especially in such an eventful year, which included the IPO, the
merger, high levels of investment and the opening of production plants in
Manila (Philippines) and Korbach (Germany), all of which collectively
placed a EUR 9.9 million drain on EBITDA for one-off expenses. Another
challenge presented itself in the shape of uncertainty on the US property
and mortgage market, which, at the end of the year, resulted in exchange
rate losses and a slight drop in light equipment sales in the US. As a
result, business in the Americas region was down slightly. Discounting
exchange rate fluctuations, however, sales rose by 3.5 percent. Business
for the entire year was up in the Europe and Asia regions and across all
business segments (light equipment, compact equipment and services). Sales
generated by the rental business in Central and Eastern Europe increased by
26.2 percent. 47 new products and product variants were launched. Sales,
development and administration costs expressed as a percentage of revenue
fell to 28.2 percent. Group profit rose 11.3 percent to EUR 54.1 million
despite the impact of price-purchase allocation.
Proposed dividend payment of EUR 0.50
'Our strong performance this year is reflected in our dividend payout,'
continues Sick. A dividend of EUR 0.27 plus a bonus of EUR 0.23 per
eligible share will be proposed to shareholders at the AGM in Munich on
June 3, 2008. This brings the total to 0.50 euros per eligible share, of
which there are 70.14 million. Last year the company paid out EUR 0.62 for
each of its 39.15 million eligible shares. In total therefore, the company
will be paying out EUR 35.07 million compared with EUR 24.27 million last
year. At the AGM, a proposal will also be made to rename the Group Wacker
Neuson SE and change its legal form to a European company (Societas
Europaea).
IPO and merger with Neuson Kramer Baumaschinen AG
On May 15, 2007, trading in Wacker Construction Equipment AG shares
commenced on the Prime Standard segment of the Frankfurt Stock Exchange.
Proceeds from the IPO will be channeled into financing strategic
investments and projects to drive profitable growth. On September 24, 2007,
Wacker Construction Equipment AG shares were listed on the Deutsche Börse
SDAX. 'As announced in our IPO prospectus, this move was accompanied by
closure of our merger with Neuson Kramer Baumaschinen AG,' adds Sick. He
went on to explain that the compact equipment portfolio of Wacker’s merger
partner is still at the beginning of its lifecycle and has been distributed
almost exclusively in Europe thus far.
Positive outlook for fiscal 2008
'2008 has been earmarked as the year of integration and market penetration.
During this period, we will be pushing ahead with our growth-focused
business strategy. With the merger behind us, we are aiming to break the
billion-euro mark for sales and achieve EBITDA of at least 17 percent,'
continues Sick. He went on to explain that the company plans to invest over
EUR 100 million in various measures, including expansion of its sales and
service network, the rental business in Central and Eastern Europe and
production capacity. The company will also be launching compact equipment
globally via its existing sales network. Overall, the company is optimistic
about the prospect of achieving sustainable growth, especially as the
mid-term outlook for global construction and agricultural markets is
positive.
Key figures: Wacker Group (including Q4 figures for Neuson Kramer):
In EUR million
2007 without PPA* /PPA* /2007 with PPA*/ 2006 / Difference as a %
Revenue 742.1 0 742.1 619.3 +19.8%
EBITDA 119.6 -2.6 117.0 100.2 +16.7%
EBIT 90.4 -11.5 78.9 76.7 +2.9%
EBT 89.8 -11.6 78.2 76.2 +2.6%
Group profit 62.0 -7.9 54.1 48.6 +11.3%
Key figures: Pro-forma figures for Wacker Neuson Group:
In EUR million
2007 without PPA* /PPA* /2007 with PPA*/ 2006 / Difference as a %
Revenue 979.5 0 979.5 883.1 +10.6%
EBITDA 162.2 -4.8 157.4 142.8 +10.3%
EBIT 130.3 -17.6 112.6 105.6 +7.5%
EBT 128.4 -17.9 110.5 110.2 +1.1%
Group profit 87.3 -12.3 75.0 72.8 +3.1%
*PPA=purchase-price allocation
About Wacker Neuson:
Completed in 2007, the merger between the parent company Wacker
Construction Equipment AG and Neuson Kramer Baumaschinen AG has created a
major global manufacturer of light and compact equipment. With over 30
affiliates and more than 180 sales and service stations across the globe,
the new company offers an unparalleled product portfolio. All products
manufactured by the new organization will in future be branded Wacker
Neuson. The exceptions to this in Europe are Kramer all-wheel loaders and
the Weidemann brand, which will be retained and further developed for the
agricultural industry. With over 300 product categories and extensive
rental, spare parts and repair services, 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 the
industrial and recycling sectors.
Wacker Construction Equipment AG
Imre Szerdahelyi
Head of Corporate Communication
Preussenstr. 41
80809 Munich, Germany
Tel. +49 - (0)89 - 354 02 - 251
[email protected]
www.wackerneuson.com
10.04.2008 Financial News transmitted by DGAP
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: [email protected]
Internet: www.wackergroup.com
ISIN: DE000WACK012
WKN: WACK01
End of News DGAP News-Service