Wacker Neuson SE — Earnings Release 2008

Mar 30, 2009

News Details

Corporate | 30 March 2009 09:28

Wacker Neuson SE: Wacker Neuson SE increases sales in 2008 due to merger and exceeds targets

Wacker Neuson SE / Final Results

Announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Group in stable financial position with high equity ratio - cost-saving
measures intensified - no forecast for fiscal 2009

(Munich, March 30, 2009) Wacker Neuson SE has exceeded its fiscal 2008
forecasts for sales (at least EUR 870 million) and EBITDA margin after
purchase price allocation (at least 11 percent) despite a significant
market slowdown in the second half of the year. The Group remains committed
to its long-term strategy and is implementing extensive cost-cutting
measures in response to current recessive market trends. It has initially
decided not to release fiscal 2009 targets.

Focus on market penetration activities in 2008
Although business in 2008 initially developed in line with predictions, the
second half of the year was characterized by a significant downturn on
international construction markets in the US and Europe. 'This had a
negative impact on light equipment sales, which then extended to compact
equipment in the last six months of the year. We subsequently revised our
forecast back in July 2008, and, thanks to our strict cost management
strategy, were still able to exceed this target' states Dr.-Ing. Georg
Sick, CEO of Wacker Neuson SE, at the company's annual report press
conference in Munich, Germany. Sales were up 17.3 percent to EUR 870.3
million (previous year: EUR 742.1 million) due to the merger. Profit before
interest, tax, depreciation and amortization (EBITDA) after purchase price
allocation totaled EUR 100.9 million (previous year: EUR 117.0 million),
resulting in an EBITDA margin of 11.6 percent (previous year: 15.8
percent). Following its first full fiscal year as the Wacker Neuson Group,
the company is pleased with market penetration measures thus far
implemented. This especially applies to the launch of compact equipment in
numerous countries, including the US, via the existing global sales
network. A large number of Wacker Neuson products from the company's own
plants were used to stock the rental and demo fleets of other Group
members. This negatively impacted profit as expected. Regional expansion
was given further impetus through the opening of a new affiliate in India;
internal processes were streamlined; the sales system aligned with national
requirements; and a wide range of new products launched.

Positive trends in the agricultural industry
While sales in Asia and the services segment developed positively, market
trends had a negative impact on sales in Europe and the Americas as well as
in the light and compact equipment segments. The affiliate Weidemann GmbH,
however, saw sales rise 27 percent from EUR 84.7 million to EUR 107.5
million during fiscal 2008, fuelled by strong demand from the agricultural
sector.

Company in a healthy and stable financial position
Numerous cost-saving measures were implemented throughout the Group in 2008
to align its cost structure with prevailing market dynamics. 'Our
consistently high equity ratio of 77.4 percent and net financial debt of
just EUR 59 million puts us in a good position. We do not envisage
financing difficulties,' emphasizes Sick. Day-to-day operations are to be
funded with cash flow from operating activities where possible and working
capital reduced throughout the course of the year.

Cost-saving measures intensified
Long-term perspectives for the construction industry are good. In the short
term, however, the climate is dampened by the overall economic crisis and
industry-specific downturns. 'We remain extremely cautious about business
development in fiscal 2009 - especially as low demand levels in January and
February have been further significantly compounded by the harsh winter.
Although we have intensified cost-saving measures, we cannot rule out
negative quarterly results this year,' adds Sick. Selling and
administrative costs are set to be further reduced in 2009. Outlay in all
business segments has been reduced and the investment budget cut by around
40 percent. 'It is also necessary to align our human resources at a time
like this,' says Sick. 'We currently plan to cut capacity by around 20
percent over the course of the year by extending our flexitime framework,
introducing short-time work at certain plants and letting some staff go.'
Activities aimed at launching compact equipment in new countries will be
continued. Due to current uncertainties, the Group has decided not to
release forecasts for sales and earnings for fiscal 2009.

Markets in motion, Strategy in place
The company does not expect the construction industry to feel the benefits
of various national action policies aimed at stabilizing economies until
the end of 2009. However, it does predict that current trends will lead to
increasing numbers of infrastructure projects being put on hold worldwide,
resulting in high levels of activity when economies pick up again. The
Wacker Neuson Group remains focused on this development and is leveraging
proven strategies plus its wealth of experience in dealing with periods of
recession to strengthen its market position. 'We have always focused on
delivering high product and service quality and maintaining close proximity
to customers. As a family-run business, we will continue to build on these
success factors - even in times of crisis,' concludes Sick. The company is
fully aware that the threatened global downturn in the construction
industry may very well run into 2010 and that this, in conjunction with
increasing competition, will further impact customer order patterns.

Key figures: Wacker Neuson Group
in EUR million 2008 2008 2007 Difference
without PPA* PPA* with PPA* with PPA* as a %
Revenue 870.3 0 870.3 742.1 +17.3%
EBITDA 102.2 1.3 100.9 117.0 -13.7%
EBIT 64.1 6.1 58.0 78.9 -26.5%
EBT 62.1 6.4 55.7 78.2 -28.8%
Group profit 41.9 4.5 37.4 54.1 -30.9%

* PPA = purchase price allocation

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:
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 company are now 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. A European company since February 2009, the group trades under the
name Wacker Neuson SE.
30.03.2009 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, Hannover, Düsseldorf, Hamburg, München, Stuttgart

End of News DGAP News-Service

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