Wacker Neuson SE — Earnings Release 2009

Nov 11, 2009

News Details

Corporate | 11 November 2009 07:28

Wacker Neuson SE: Wacker Neuson SE again reports quarter-on-quarter increase in profit for Q3 and is almost debt free

Wacker Neuson SE / Quarter Results

11.11.2009

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Significant improvement in financial and asset position - continued market
turbulence - upturn in business expected for 2010

(Munich, November 11, 2009) Wacker Neuson SE has strengthened its healthy
financial position in Q3 2009 and is almost debt free. Cost-cutting
measures had a stronger impact during this quarter, thus enabling the
upward trend in Group earnings to continue from Q2 into Q3 despite ongoing
recessive market conditions. The Group expects to report an annual loss for
fiscal 2009 for the first time in the company's history as a result of
first quarter losses.

Strict, forward-looking financial and cost management policies
Dampened by the general economic recession, turbulent international
construction and agricultural markets continue to affect the Wacker Neuson
Group's performance. 'Nevertheless, we have again succeeded in
significantly improving profit relative to the previous quarter thanks to
our strict, forward-looking cost management strategy. At 10.5 percent, the
EBITDA margin for the quarter has returned to positive two-digit figures
for the first time in a year,' explains Dr.-Ing. Georg Sick, CEO of Wacker
Neuson SE. Although revenue for the third quarter was down slightly on the
previous quarter at EUR 149.0 million (Q2: EUR 156.5 million) due to
seasonal fluctuations, profit for the period rose significantly to EUR 4.8
million (Q2: EUR 1.4 million). 'We are currently seeing early signs of
low-level stabilization in the light equipment segment and in the US.
Nonetheless, customer orders remain down on the previous year and we also
expect revenue for the fourth quarter to be below last year's figures. The
sizeable rise in profit will not be sufficient to prevent us from reporting
an operative annual loss for 2009 for the first time in the company's
history,' continues Sick. The Group continues to maintain its strong
financial and asset position. Equity ratio climbed to 79.8 percent and
operative cash flow was clearly in the black. Net financial debt fell
considerably to just EUR 5.4 million (Q2: EUR 42.4 million). As a result,
gearing (net financial debt as a percentage of equity) dropped to 0.6
percent, meaning that the Group has cleared almost all of its debt. The
Group has also continued to make good progress in reducing inventory levels
and brought working capital down by EUR 25.4 million during the third
quarter.

Group maintains ability to deliver, perform and succeed in the future
'We introduced cost-saving measures at an early stage during the second
half of 2008, always keeping a close eye on maintaining our ability to
deliver, perform and succeed in the future,' confirms Sick. As announced,
the company has reduced personnel costs and working hours by around 20
percent compared with figures at December 31, 2008. This involved reducing
headcount by around 800, including temporary staff, in comparison to the
figure at the end of September 2008. In the US alone, headcount was further
reduced by 80 during the third quarter. The Group has now introduced
short-time working schemes in all of its European plants, reflecting the
negative impact market conditions are now having on the agricultural
sector. Costs for HR adjustments have thus far amounted to EUR 8.1 million.

Positive forecast for 2010
'We are getting ready for an upturn in business, fueled above all by a
backlog of infrastructure projects. We are cautiously optimistic about 2010
and expect business to pick up during the coming year,' states Sick. In
order to win market share, the Group remains committed to launching compact
equipment worldwide via its global sales and service network. It will also
be launching its Farm Mobility concept during the course of 2010. Under the
umbrella of this program, the Group will be adapting proven compact
equipment to meet the needs of the agricultural sector, thus enabling it to
expand its range of agricultural products and widen the affiliate Weidemann
GmbH's footprint in the agricultural sector. The company will also be
unveiling numerous new products at bauma, the world's largest construction
trade fair, held in Munich in April 2010. Sick also confirms that, in view
of its excellent liquidity level, the Group will continue to evaluate
possible alliances and acquisitions.

Key Wacker Neuson Group figures*
In EUR million
Q3/2009 Q2/2009 Q1/2009 9M/2009 9M/2008 Change as a %
Revenue 149.0 156.5 137.3 442.8 684.7 -35.3
EBITDA 15.6 13.4 -12.3 16.8 91.4 -81.6
EBIT 5.9 3.2 -22.6 -13.4 60.8 -
EBT 5.2 2.6 -23.0 -15.2 59.1 -
Profit for
the period 4.8 1.4 -16.6 -10.4 38.4 -

* All figures include effects from purchase price allocation; differences
may occur as a result of figures being rounded up or down.

Your contact at Wacker Neuson:

Wacker Neuson SE
Imre Szerdahelyi
Head of Corporate Communication
Preußenstr. 41
80809 Munich, Germany
Tel. +49 - (0)89 - 354 02 - 251
imre.szerdahelyi@wackerneuson.com
www.wackerneuson.com

About Wacker Neuson:
Wacker Neuson SE is a 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. Almost
all products manufactured by the company are branded Wacker Neuson. The
only exceptions to this in Europe are Kramer-branded all-wheel loaders and
Weidemann-branded agricultural machinery, which the company plans to
strengthen and expand. With over 300 product categories and complementary
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.

11.11.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: Wacker Neuson SE
Preußenstr. 41
80809 München
Deutschland
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
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hannover, München, Hamburg, Stuttgart

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