Wacker Neuson SE — Earnings Release 2010

Jul 26, 2010

News Details

Corporate | 26 July 2010 06:33

Wacker Neuson SE profitable in H1 as order book shows strong signs of revival

Wacker Neuson SE / Preliminary Results

26.07.2010 06:33

Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.

---

Wacker Neuson SE profitable in H1 as order book shows strong signs of
revival
Trend confirmed - Q2 revenue up on first quarter and same quarter last year
-Order intake has positive impact on capacity utilization

(Munich, July 26, 2010) According to provisional figures, the Wacker Neuson
Group managed as expected to increase Q2 revenue relative to both the first
quarter of the current fiscal year and the same quarter last year and post
positive earnings once again. In addition, the Group reports a healthy
revival of order intake. Order backlog for compact equipment at the end of
June 2010 was 350 percent higher than the corresponding figure for the same
period last year.

Further increase in revenue and earnings in Q2
Although sales in the first quarter were squeezed by a harsh winter in the
US and Europe, demand in the second quarter picked up further as expected
and as indicated at the world's largest construction fair bauma in April.
According to provisional figures, quarterly revenue for the Wacker Neuson
Group is expected to reach EUR 205.3 million, up 36.6 percent on the first
quarter and 31.2 percent on the same period last year (Q1 2010: EUR 150.3
million, Q2 2009: EUR 156.5 million). These figures reflect the positive
trend in the light equipment segment in particular. The forward-looking
cost-efficiency measures introduced back at the end of 2008 also
contributed - as anticipated - to the results. The provisional Q2 profit
before interest, tax, depreciation and amortization (EBITDA) amounts to
around EUR 27.0 million (previous year: EUR 13.4 million). Provisional
earnings before interest and tax (EBIT) are posted at around EUR 17.2
million (previous year: EUR 3.2 million) with provisional Q2 profit for the
period after tax and minority interests set at around EUR 10.9 million
(previous year: EUR 1.4 million). The Wacker Neuson Group was thus able to
more than compensate for Q1 losses (posted at EUR 5.7 million) and has
returned to profit as planned in the first half year. The company remains
on a strong financial footing with an equity quota of 79 percent and a low
net financial debt.

Order backlog up 350 percent on previous year's figure
Accumulated order income for compact equipment - fuelled by the
construction and agricultural industries - almost doubled in the first
half-year of 2010 relative to the same period last year. By the end of June
2010, order backlog was even 350 percent higher than the figure reported
for 2009. This upturn was, however, also accompanied by delivery
bottlenecks among certain suppliers and this affected the entire industry.
The Group assumes that pressure will ease further and products will
increasingly be ready for delivery on time. 'Our production facilities for
light and compact equipment such as wheel loaders, dumpers and excavators
show a healthy level of capacity utilization. In addition, our recent
alliance with Caterpillar has the effect of accelerating construction plans
for our new production facility in Hörsching, near Linz in Austria,'
explains Dr. Georg Sick, CEO of Wacker Neuson SE. Additional reasons for
the Group to feel optimistic for fiscal 2010 overall is the demand for
light equipment that remains strong in Europe, the US and Asia.

Global perspective underpins future prospects
Under the umbrella of a strategic alliance recently concluded between
Wacker Neuson SE and Caterpillar Inc., Peoria, US, both companies have
agreed to collaborate over the next 20 years. Starting in 2011, Wacker
Neuson will exclusively develop mini excavators up to a total weight of
three tons and manufacture these at Wacker Neuson's plant in Austria.
Caterpillar will use these machines to meet worldwide demand for its mini
excavators (with the exception of Japan). 'Caterpillar has the world's
strongest distribution network. This strategic alliance allows us to
increase production volumes, reduce manufacturing costs and strengthen the
competitive positions of both companies in what is a highly fragmented
market,' continues Sick. The Group is looking to the future with optimism.
'Mid-term, we are planning to more than double unit production in this
product class. And this strategic alliance will also impact positively on
our development and manufacturing competencies,' concludes Sick.

The full half-year report will be published on August 13, 2010.

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
E-mail: katrin.neuffer@wackerneuson.com
Internet: www.wackerneuson.com

26.07.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

---

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

End of News DGAP News-Service

---