Wacker Neuson SE — Earnings Release 2010

Aug 13, 2010

News Details

Corporate | 13 August 2010 07:39

Wacker Neuson SE: Wacker Neuson SE strengthens earnings power in first half of fiscal 2010

Wacker Neuson SE / Half Year Results/Quarter Results

13.08.2010 07:39

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Wacker Neuson SE strengthens earnings power in first half of fiscal 2010
Increased demand for construction and agricultural machinery across all
regions - return to the profit zone - promising market outlook - company
raises overall growth forecast for 2010

(Munich, August 13, 2010) The Wacker Neuson Group significantly increased
revenue for the first half-year relative to the previous year, enabling the
company to return to the profit zone as planned. The upswing was reflected
in a clear rise in revenue across all regions and business segments. The
positive market climate has led the company to revise its forecast for
fiscal 2010 upwards.

Revenue and earnings up significantly in the first half-year
The first six months of fiscal 2010 were characterized by a rise in demand
for construction and agricultural machinery fuelled by the economic
recovery. The Wacker Neuson Group benefited from this development reflected
in a clear rise in revenue by 21.0 percent to EUR 355.6 million (previous
year: EUR 293.8 million). With net earnings totaling EUR 5.2 million
(previous year: EUR -15.2 million), the Group returned to the profit zone
as planned at the half-year mark. Revenue was up on the previous year in
all regions and business segments. Economic recovery continued in the
Americas (+63.3 percent) and the Group also reported clear revenue gains in
Europe (+11.9 percent) and Asia (+18.2 percent). A rise in construction
activity and catch-up effects led to a continued upward trend in light
equipment sales (+40.0 percent). The compact equipment segment also
experienced significant growth (+16.0 percent) as supplier bottlenecks,
which initially delayed deliveries, gradually began to clear. 'For our
business, the upbeat trends and strong increase in order volume in the
compact equipment segment mean that we are caught in a v-shaped recovery
cycle,' explains Dr. Georg Sick, CEO and President of Wacker Neuson SE. The
order book for compact equipment at the reporting date was up 350 percent
on the previous year.

Earnings up for Wacker Neuson
At EUR 205.3 million, second-quarter revenue for the Group was up 31.2
percent on the previous year's figure of EUR 156.5 million. The second
quarter of 2010 in particular is testament to the lasting impact of the
company's long-term cost-cutting measures. Profit before interest, tax,
depreciation and amortization (EBITDA) rose to EUR 27.0 million (previous
year: EUR 13.4 million) and net earnings to EUR 10.9 million (previous
year: EUR 1.4 million). 'The company's earnings power has rebounded faster
than might be expected thanks to the cost-cutting measures we implemented
at an early stage. Our EBITDA margin of 13.2 percent in the second quarter
sees us return to pre-crisis profitability. The recovery across markets
needs to continue, however, if we are to be sure of maintaining this
level,' continues Sick. Wacker Neuson remains on firm financial footing and
its finances are extremely healthy, with an equity ratio of 79 percent and
low net financial debt. Working capital increased in line with revenue as
planned.

Forecast for entire year adjusted upwards
As a result of the positive market climate the Wacker Neuson Group now
expects revenue for fiscal 2010 to be over ten percent up on the figure for
last year (2009: EUR 597.0 million). Profit before interest, tax,
depreciation and amortization (EBITDA) is expected to improve and account
for at least 9.0 percent of revenue (2009: 4.6 percent).

Key figures: Wacker Neuson Group*
In EUR million

Q2_2010/Q2_2009/Difference/H1_2010/H1_2009/Difference

Revenue 205,3/156,5/+31,2%/355,6/293,8/+21,0%
EBITDA 27,0/13,4/+101,4%/30,7/1,1/-
EBITDA margin 13,2%/8,6%/-/8,6%/0,4%/-
EBIT 17,1/3,2/+430,4%/11,2/-19,3/-
EBIT margin 8,4%/2,1%/-/3,2%/-6,6%/-
EBT 15,8/2,6/+511,1%/9,1/-20,4/-
Profit for the period 10,9/1,4/+670,8%/5,2/-15,2/-

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

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 company offers an exceptionally broad product portfolio.
Manufacturing activities are distributed across three German, one Austrian,
two American and one Philippine production sites. Almost all products
manufactured by the company are branded Wacker Neuson. The only exceptions
to this in Europe are Kramer Allrad products and Weidemann-branded
agricultural machinery. 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.

Your contact partner at Wacker Neuson:

Wacker Neuson SE
Katrin Neuffer
Preussenstr. 41
80809 Munich, Germany
Tel. +49 - (0)89 - 354 02 - 173
katrin.neuffer@wackerneuson.com
Internet: www.wackerneuson.com

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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 Hamburg, München, Düsseldorf, Berlin, Hannover, Stuttgart

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