Wacker Neuson SE — Earnings Release 2009

Aug 13, 2009

News Details

Corporate | 13 August 2009 07:32

Wacker Neuson SE:Wacker Neuson SE reports second-quarter profit and consolidates healthy financial position

Wacker Neuson SE / Interim Report/Half Year Results

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Cost-cutting measures have desired impact - revenue increase on previous
quarter for first time in a year - continued turbulent market conditions

(Munich, August 13, 2009) Wacker Neuson SE generated positive earnings in
the second quarter of fiscal 2009, with the cost-cutting measures having
the desired effect here. In the second quarter, revenue was up on the
previous three months, but significantly lower than the same period for the
previous year due to the current market climate. The Group was able to
further improve its exceptionally sound financial position during the
quarter by maintaining its high equity ratio, positive operative cash flow
and low net financial debt.

Positive second-quarter earnings
Although the overall recession continues to have a massive impact on the
construction industry, particularly in foreign markets, the Wacker Neuson
Group experienced a slight upturn in business during the second quarter.
'We have seen a quarter-on-quarter rise in revenue for the first time in a
year. The measures we announced in the Q1 report aimed at cutting costs and
streamlining the organizational structure started to take effect, enabling
us to generate a positive result,' explains Dr.-Ing. Georg Sick, CEO of
Wacker Neuson SE. Revenue for the second quarter totaled EUR 156.5 million
(Q1: EUR 137.3 million) and profit for the period amounted to EUR 1.4
million (Q1: EUR -16.6 million). As anticipated, this rise was not
sufficient to prevent the Group from reporting a loss for the first half
year, as order intake was significantly below figures for the same period
last year, especially in the core markets of the US and Europe. The Group's
cost-saving measures resulted in a sharp drop in selling expenses as well
as R&D and administration costs, with particular focus placed on cutting
back investments and limiting the scope of projects, as well as reducing
personnel costs and working hours. 'We practically achieved our target of
reducing work capacity by 20 percent by mid-2009 (compared with figures at
the close of 2008). We will continue to focus our efforts here on expanding
flexitime frameworks and short-time work. However, in countries where these
measures are not possible, we have had to lay off more than 700 members of
staff since the end of September 2008. This figure includes temporary
workers,' continues Sick. The cost of these restructuring measures amounted
to EUR 5.7 million.

Very healthy financial position further consolidated
Working capital was cut by EUR 32.4 million (target reduction: EUR 20
million) through intensive downsizing of inventory. Equity ratio rose to
78.9 percent and operative cash flow reached very healthy levels. Despite
the dividend payment, net financial debt dropped by more than EUR 20
million to EUR 42.4 million, with gearing (net financial debt as a
percentage of equity) also falling to 4.8 percent. 'We therefore have
excellent liquidity levels, enabling us to navigate the difficulties of the
current market situation without having to rely on banks or government
aid,' emphasizes Sick.

Winning market share in the midst of the recession
Unfavorable overall market trends will continue to negatively impact the
construction and agricultural sectors in the short and mid-term. The Group
does not anticipate positive effects from government economic recovery
packages before the end of 2009. As a result, the backlog of infrastructure
projects worldwide is increasing, which will translate into growth
opportunities in the long term. 'Despite an improvement in business, we
remain extremely cautious about the remainder of the current fiscal year.
Should revenue and earnings continue to fall, we cannot currently rule out
an annual loss,' explains Sick. Although the Group remains committed to
implementing cost-cutting measures in order to improve profit levels, it
also intends to invest wisely to maintain its renowned high levels of
product and service quality as well as its highly-rated customer proximity.
Activities aimed at launching compact equipment in new countries will be
continued as part of the Group's strategy of increasing market share.
Possible alliances and acquisitions are also continually being evaluated.

Key figures: Wacker Neuson Group*
In EUR million
Q2/2009 Q1/2009 H1/2009 H1/2008 Difference (as a %)
Revenue 156.5 137.3 293.8 472.4 -37.8
EBITDA 13.4 -12.3 1.1 63.2 -98.2
EBIT 3.2 -22.6 -19.3 43.0 -
EBT 2.6 -23.0 -20.4 42.4 -
Profit for
the period 1.4 -16.6 -15.2 28.8 -

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

Your contact partner 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.
13.08.2009 Financial News transmitted by DGAP

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Language: English
Issuer: 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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