Q3/2007

Wacker Construction Equipment AG Nine-month report

+++ Sales match +++ previous quarter's results

+++ Sales +++ growth in China

Region Europa Region Asien

+++ Sales in Germany +++ up considerably on last year

20.2

Key Figures1

July 1 through September 30 and January 1 through September 30

	WACKER GROUP						NEUSON KRAMER GROUP
	July1-	July1-		Jan. 1-	Jan.1-		Feb. 1-	Feb. 1-
	Sept. 30,	Sept. 30,		Sept. 30,	Sept. 30,		Sept. 30,	Oct. 31
	2007	2006	Change	2007	2006	Change	20073	20064	Change
	in € million	in € million	in %	in € million	in € million	in %	in € million	in € million	in %
Sales	162.5	154.6	5.1	504.2	470.6	7.1	243.4	195.1	24.8
By region
Europe	106.6	99.6	7.0	329.8	291.1	13.2	232.7	184.5	26.1
Americas	48.5	48.3	0.3	156.2	161.6	- 3.4	10.7	10.6	0.9
Asia	7.5	6.7	11.0	18.2	17.9	2.0
By business segment2
Light equipment	96.4	94.5	2.0	319.5	304.3	5.0
Compact equipment	23.9	21.7	9.9	70.2	67.2	4.4	243.4	195.1	24.8
Services	42.2	38.4	10.1	114.5	99.1	15.6
Gross profi t in %	41.5	42.2	- 0.7 PP	41.3	42.0	- 0.7 PP	38.6	39.5	- 0.9 PP
EBITDA	28.0	28.4	- 1.6	83.2	83.2	0.0	45.1	36.9	22.2
Above margin in %	17.2	18.4	- 1.2 PP	16.5	17.7	- 1.2 PP	18.5	18.9	- 0.4 PP
Depreciation and amortization	7.1	6.6	8.9	20.5	17.5	16.9	2.8	2.3	21.7
EBIT	20.8	21.9	- 4.8	62.7	65.7	- 4.5	42.3	34.6	22.2
Above margin in %	12.8	14.1	- 1.3 PP	12.4	14.0	- 1.6 PP	17.4	17.7	- 0.3 PP
EBT	21.4	21.5	- 0.5	62.1	64.7	- 4.0	41.0	37.7	9.0
Profi t for the period	17.9	13.3	34.6	42.7	40.9	4.4	27.1	26.8	1.1
Earnings per share in €	0.38	0.32	- 0.06	1.00	1.00	0.00	2.43	2.40	1.2
Cash fl ow
(from operating activities)	27.8	17.8	55.9	29.9	32.4	- 6.3	0.7	29.2	- 97.6
Purchase of property,
plant and equipment	17.2	5.1	234.2	58.4	29.7	96.6	7.2	1.0	620.0
Net borrowings	- 66.9	35.7	–	- 66.9	35.7	–	27.6	- 6.7	–
Working capital	189.2	178.8	5.9	189.2	178.8	5.9	106.9	69.4	54.0
Equity ratio in %	67.5	59.5	8.0 PP	67.5	59.5	8.0 PP	47.2	54.3	- 13.1 PP
Employees	2,961	2,824	4.9	2,961	2,824	4.9	693	590	17.5

1 Consolidated fi gures based on IFRS

2 Consolidated sales after discounts

3 NEUSON KRAMER Baumaschinen AG brought its fi nancial year 2007 in line with the calendar year by reducing it by 1 month. The 3rd quarter therefore covers two months only.

4 Financial year 2006/2007 (February 1 to January 31)

SALES DISTRIBUTION WACKER

in % (previous year)

BY REGION BY BUSINESS SEGMENT

BY REGION SALES DISTRIBUTION NEUSON KRAMER in % (previous year)

Content

Foreword by Executive Board | 03 Interim Review | 05 Interim Financial Statements | 23 Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Segmentation Notes to the Consolidated Interim Financial Statements | 29 Interim Financial Statements of Neuson Kramer | 34 Consolidated Income Statement, Consolidated Balance Sheet, Statement of Changes in Equity, Consolidated Cash Flow Statement Notes to the Consolidated Interim Financial Statements Neuson Kramer | 38 Financial Calendar | 43 IR / Press Contact | 43

+++ Q3 2007 news +++

Q3 HIGHLIGHTS

Americas: Third-quarter sales in the region up 0.3 percent on previous year despite crisis on US residential property market +++ Wacker Corporation subsidiary celebrates fi ftieth anniversary in US from position of strength as market leader
Europe: Merger completed with Neuson Kramer Baumaschinen AG +++ European construction market continues to drive growth +++ Sales in Germany 20.2 percent above previous year's level after nine months +++ Weidemann GmbH production plant operational ahead of schedule
Asia: Discounting major orders, expansion of sales activities leads to 92-percent sales increase in China after fi rst nine months +++ Production plant in Manila on schedule to commence operations at end of 2007

What are the main target markets for WACKER products?

Non-residential/residential

Residential and non-residential construction – two key drivers

Although the residential market in Europe and the US is on the decline, it nonetheless accounts for a large share of the total construction industry worldwide. Investments in commercial and industrial construction in particular continue to rise worldwide. This includes above all state-subsidized highway and bridge infrastructure projects as well as the associated maintenance work. Information provided by our subsidiaries shows that Wacker products are primarily used in the growing non-residential construction industry (see fi gure).

Our reaction to these trends

We aligned our strategy early with these trends and are capitalizing on the shift by launching new products, especially in the compact equipment segment. The recently closed merger with Neuson Kramer Baumaschinen AG has enabled us to expand our compact equipment product portfolio to include 53 new models for the construction and agriculture industries (skidsteer loaders, wheel loaders, telescopic loaders, dumpers and mini excavators).

I am delighted that the merger agreement between Wacker Construction Equipment AG and Neuson Kramer Baumaschinen AG was closed in Q3. This agreement between two companies that have maintained their traditional roots while driving growth and earnings has laid the foundations for the sustained expansion of our new company, whose name and legal form will be changed to Wacker Neuson SE at the AGM in June 2008.

The merger positions us as a major global player with an unparalleled portfolio of light and compact equipment. The product ranges offered by both companies complement each other ideally. The users, target markets and sales channels are almost identical. Neuson Kramer Baumaschinen AG compact equipment is at an early stage of the lifecycle and has previously been almost exclusively marketed in Europe. We now aim to harness our existing sales and service network to market these products worldwide.

In the first half of 2008, we already plan to launch compact products in the US market. The products we showcased in Q3 2007 were very well received by our sales partners in the US. As demand from the agricultural industry for wheel loaders manufactured by our subsidiary Weidemann is on the rise, we expect company growth to continue next year despite sluggish local construction markets, for example as a result of the US mortgage and property crisis.

One of the main worries on the capital market is that the US property and mortgage crisis will affect global construction markets and therefore also our company. This forecast contrasts our opinion. Although the past weeks have seen a number of institutional investors sell some or all of their shares in our company. We are aware that we still have to earn investors' trust on the capital market and are committed to fulfilling the promises we made at the time of our IPO.

In the third quarter of this year, both merger partners experienced strong performance in line with predictions. Our company has been able to weather the drop in new residential construction in the US as well as the slight downward trend in individual construction industries across Europe, enabling us to report a rise in sales across all three regions (Europe, the Americas and Asia) compared with the same quarter last year.

Based on these positive results and the outlook for Q4 2007, the projections we published in August this year still apply. That is, we still expect to achieve sales totaling between EUR 655 million and EUR 670 million for fiscal 2007, and profit before interest, tax, depreciation and amortization (EBITDA) ranging from EUR 110 million to EUR 115 million. We are confident that we will reach this result after reporting a lower EBITDA margin for the 4th quarter of the previous year caused by one-off

expenses. However, following initial consolidation of Neuson Kramer Baumaschinen AG on October 1, 2007, we decided to increase our sales and earnings forecasts for fi scal 2007. The Wacker Group now expects sales of at least EUR 720 million and profi t before interest, tax, depreciation and amortization (EBITDA) of at least EUR 120 million.

Compared with the pro forma sales of EUR 883.2 million for fi scal 2006 stated in the prospectus for the IPO, the current forecast of about EUR 970 million for the entire year on pro forma basis (eleven months of Neuson Kramer Baumaschinen AG) would represent an increase of 9.8 percent. This would then result in an 11.3 percent rise in EBITDA from EUR 149.2 million to about EUR 166 million, which, in turn, would correspond to an EBITDA margin of 17.1 percent. It should be noted here that Neuson Kramer Baumaschinen AG will only be reporting on sales and profi t for a reduced period of eleven months in fi scal 2007. This is due to the previous deferred fi scal year (February 1 through January 31) being brought into line with the calendar year. Against the background of a reduced reporting year we expect, these pro forma fi gures thus reveal double-fi gure growth in sales as well as an above-average rise in profi t. For improved comparability, I would like to point out that the effects of purchaseprice allocation under IFRS have not been included in either set of fi gures.

As you can see, ladies and gentlemen, the new company Wacker Neuson has got off to a great start and is on a strong fi nancial footing. I will be working intensively with my colleagues from the Executive Board to ensure a smooth, successful transition both within the company and in our relationships with our stakeholders.

Best regards,

Dr. Ing. Georg Sick, Chairman of the Executive Board

Interim Review

Group sales at record level after fi rst nine months of fi scal 2007; 10.2 percent growth discounting exchange rate fl uctuations
Sales up in all three regions (Europe, the Americas and Asia) in third quarter
Signifi cant growth in compact equipment business segment thanks to sustained high demand from the construction and agricultural industries
Sales up 15.6 percent in the services business segment, stemming in particular from the Central and Eastern European rental business
Positive impact on taxes due to revaluation of deferred tax in accordancewith German tax adjustment law
High investment activity continued
Initial consolidation of Neuson Kramer Baumaschinen AG on October 1, 2007
Neuson Kramer Baumaschinen AG sales up 24.8 percent and EBITDA up 22.2 percent despite the fi scal year being shortened by one month
Fiscal 2007 projections for sales increased to at least EUR 720 million and for EBITDA to at least EUR 120 million

Overall economic trends

Global economy buoyant and stable

According to fi nancial experts, the global economy was buoyant and stable during the fi rst nine months of fi scal 2007. This remained the case despite the overall global impact of turbulent fi nancial markets, the uncertain US property market and the weakening of the US dollar.

The overall situation is positive, with a favorable economic climate continuing to prevail in Asia and Europe and Latin and Central America remaining stable and buoyant. Despite the strong euro, the German economy also remained strong in the third quarter.

The graphics and tables in the following are not part of the Group Management Report as reviewed by the auditors. They are provided by way of additional information only.

Interim Review

The construction industry as a key economic driver

The construction industry remained a key economic driver in many countries during the fi rst nine months of 2007. Particularly in Europe, demand for residential and commercial construction was high. In the USA, development was marked by uncertainty on the property market. However, while the US Census Bureau reports a 16-percent downturn in residential construction investment over the fi rst eight months of the year, investment in commercial and industrial construction rose a substantial 14.7 percent. At the end of the fi rst eight months, residential construction accounted for around 45 percent of total investment volume, and commercial and industrial construction around 55 percent. According to the US Department of Commerce, construction expenditure in the USA was up 0.3 percent in September on the previous month.

According to Munich's ifo institute, the mood in mainstream construction grew less optimistic in Germany during the third quarter of 2007. Construction experts attribute this to the expected decrease in residential construction investment due to cancellation of the annual home-owners' allowance payable in Germany over an eight-year period. The Federation of the German Construction Industry estimates that the fi rst half-year was down 1 percent on the previous year. Construction projects were also completed earlier due to the mild winter, and there were delays to subsequent pro jects. On the other hand, commercial construction remains on an expansion path and the Federation of the German Construction Industry reports 9.5-percent growth in the fi rst half of 2007 in comparison with the previous year. According to the German Engineering Federation (VDMA), the German machine and plant construction industry continues to experience double-digit growth in order intake.

Group business development

Business trends in the Wacker Group continued according to plan in the third quarter of fi scal 2007, even though, isolated fl uctuations were apparent in individual segments due to developments in the US property sector. Demand for our products and services remained high, and we were able to meet our budgetary targets. Sales in the fi rst nine months increased 7.1 percent to EUR 504.2 million, up from EUR 470.6 million the previous year. Adjusted to refl ect exchange rate fl uctuations, this represents sales growth of 10.2 percent. Business development in line with company plans

In Q3 2007, sales were up 5.1 percent on the same quarter the previous year, increasing from EUR 154.6 million to EUR 162.5 million. We are particularly pleased to report that all three regions achieved sales growth in the third quarter. Adjusted to refl ect exchange rate fl uctuations, our sales increase in the third quarter was 7.6 percent.

Sales
9M / Q3 2007 and 2006	9M/2007	504,220
in EUR K	9M/2006	470,644
	Q3/2007	162,518
	Q3/2006	154,621

Performance here was infl uenced by a rise in the average euro-to-US-dollar exchange rate to EUR 1 = USD 1.35 in comparison with the previous year (previous year: EUR 1 = USD 1.25). At the end of the fi rst nine months this fi gure remained below the average exchange rate of USD 1.36 we had planned for 2007. The impact of the weak US dollar on our business development in comparison with the previous year was as follows:

Growth rates discounting exchange rate fl uctuations for the fi rst nine months of fi scal 2007 in comparison with the previous year

	Change
	in %
Sales	10.2
Gross profi t margin	7.5
EBIT	- 3.0

As anticipated, there was no signifi cant increase to the budgeted one-off expenses that arose in the fi rst half-year. At EUR 83.2 million, profi t before interest, tax, depreciation and amortization (EBITDA) – our main benchmark – was at exactly the previous year's level after the fi rst nine months. Without one-off expenses totaling EUR 8.3 million, EBITDA would have risen by 10 percent to EUR 91.5 million during the period under review.

EBITDA 9M / Q3 2007 and 2006 in EUR K

9M/2007*	91,525
9M/2007	83,224
9M/2006	83,238
Q3/2007*	28,403
Q3/2007	27,964
Q3/2006	28,417

* discounting one-off items

Profi t before interest and tax (EBIT) totaled EUR 62.7 million after nine months (previous year: EUR 65.7 million). EBIT was affected by one-off expenses totaling EUR 11 million, of which EUR 9.7 million was incurred in the fi rst half-year. Without one-off items, EBIT would have risen by 12.2 percent to EUR 73.7 million after the fi rst nine months.

* discounting one-off items

According to the asset history sheet, investments for the fi rst nine months of fi scal 2007 totaled EUR 51.8 million (previous year: EUR 30.6 million).

As part of the merger, Dr. Sick (right) congratulates Mr. Neunteufel (left) on his appointment to Chairman of the Supervisory Board of Wacker Construction Equipment AG.

Merger completed with Neuson Kramer Baumaschinen AG

On September 23, 2007, Wacker Construction Equipment AG, Neuson Kramer Baumaschinen AG (Austria) and the main shareholders of Neuson Kramer Baumaschinen AG (accounting for a total holding of 89.63%), signed an agreement to merge both companies on September 23, 2007. The other shareholders of Neuson Kramer Baumaschinen AG, who held the remaining 10.37% stake, signed the agreement on October 18, 2007.

Neuson Kramer Baumaschinen AG main shareholders transferred their shares to Wacker Construction Equipment AG in exchange for 16,702,912 new shares from a capital increase by means of contributions in kind and 4,349,961 treasury shares in Wacker Construction Equipment AG. The remaining shareholders transferred their shares to our company in exchange for 2,437,088 new shares from a further capital increase by means of contributions in kind. This completed our merger with Neuson Kramer Baumaschinen AG in line with our IPO prospectus. A resolution to change the legal form of the company to a European stock corporation (Societas Europaea or SE) and to rename the company Wacker Neuson SE will be proposed at the next Wacker Construction Equipment AG Annual General Meeting at the beginning of June 2008.

Strong results at Neuson Kramer Baumaschinen AG despite the fi scal year being shortened by one month

Neuson Kramer Baumaschinen AG was initially consolidated on October 1, 2007. At this point, the Company brought its fi scal year, previously February 1 through January 31, in line with the calendar year, reducing the third quarter to two months. Thanks to high product demand, business development at Neuson Kramer Baumaschinen AG has been very positive for the year to date. In the fi rst eight months of fi scal 2007/2008, sales (Expenditure Format) were up 24.8 percent in comparison with the fi rst nine months of the previous year, increasing from EUR 195 million to EUR 243.4 million. Around 96 percent of sales was generated in Europe. Profi t before interest, tax, depreciation and amortization (EBITDA) grew 22.2 percent to EUR 45.1 million (previous year: EUR 36.9 million). Profi t before interest and tax (EBIT) was up 22.3 percent to EUR 42.3 million (previous year: EUR 34.6 million), despite one-off merger expenses. Profi t for the period amounted to EUR 27.8 million (previous year: EUR 27.2 million).

The new plant in Manila will start production at the end of 2007 (left). The new plant in Korbach successfully commenced operations (production line seen here).

Manufacturing plant for wheel loaders opens ahead of schedule

Construction work being carried out by the Wacker Group is proceeding according to plan. The new manufacturing plant for Weidemann GmbH in Korbach opened for operations somewhat earlier than planned, at the beginning of November 2007. This enables us to meet increased demand for compact wheel loaders for the construction and agricultural industries. New facilities and machinery and restructured production processes will signifi cantly streamline production and optimize workplace ergonomics, air conditioning, heating and lighting. As a result of these effi ciency im provements, the company managed to reduce its headcount by 26 at the Diemelsee-Flechtdorf and Gotha sites on the basis of voluntary redundancy agreements mainly with workers in production.

The new production plant in Manila is also scheduled for completion in Q4 2007, and construction work on the European training center at the production site in Reichertshofen will fi nish at the end of this year. On August 3, 2007, work began on a new production plant for Ground Heaters, Inc., the Wacker affi liate company acquired in 2006. Located in Norton Shores, Michigan (USA), the new plant will expand production capacity for portable hydronic heating equipment, light towers and generators for the utility business fi eld and implement more effi cient production processes. The plant is due to be fi nished in the second half of 2008. The investment volume will total up to USD 10 million. The design of the production facility means it can be progressively expanded to meet increases in demand. Here we are currently considering whether we could also use this site to produce compact equipment for the US market.

Following the IPO on May 15, 2007, the Executive Board has been providing capital market players with regular information on the Company's development. Alongside the analysts' conference in Frankfurt, the Executive Board also used investor conferences and national and international roadshows to address questions from analysts and investors. We have regularly updated the company website and provided prompt, comprehensive answers to enquiries by private and institutional investors. Capital market communication and share price development

On September 24, 2007, Wacker Construction Equipment AG shares were listed on the Deutsche Börse SDAX. According to the Deutsche Börse equity index listings, Wacker Construction Equipment AG was rated 114th on the basis of free-fl oat market capitalization and 107th on the basis of stock exchange turnover on the inclusion date.

In the third quarter, our share price took a downward turn, although the company has not made any negative announcements since the IPO. Causes of this include investors selling for short-term profi ts following the IPO and, in particular, the uncertainties on the US property and mortgage market and concerns surrounding a knock-on effect on the international construction market. In the period from July 1, 2007 through September 30, 2007, the stock exchange price dropped from EUR 27.35 to EUR 19.54.

Profi t, fi nances and assets

Profi t

Positive sales trends

The Wacker Group sales and profi t results at the end of the fi rst nine months are in line with company projections. Sales increased 7.1 percent to EUR 504.2 million (previous year: EUR 470.6 million). Adjusted to refl ect exchange rate fl uctuations, sales were up 10.2 percent.

Manufacturing costs rose to EUR 296.2 million (previous year: EUR 273 million). This is attributable to increased unit sales, additional expenditure on materials to meet increased production levels, higher production and freight costs and expansion of the rental pool.

Gross profi t reached EUR 208 million (previous year: EUR 197.6 million). The gross profi t margin was at 41.3 percent (previous year: 42 percent). This is attributable to the increased role played by the compact equipment business segment, as the margins here are lower than in the light equipment segment due to a multiple-stage sales system in the agricultural market. We anticipate that the elimination from interim profi t due to an increase in stock on hand, as stated in the half-year report, will decrease by the end of the current fi scal year.

In the period under review, selling expenses rose by 10 percent to EUR 101.2 million. This increase is attributable to additional employees hired as part of our expansion of sales activities. Research and development costs rose 9.9 percent to EUR 13.7 million (previous year: EUR 12.5 million) due to active development work on new and enhanced products and increased headcount. General administrative costs increased by 5.8 percent to EUR 33 million (previous year: EUR 31.2 million) as a result of restructuring costs at Weidemann GmbH and legal and consulting costs relating to the merger with Neuson Kramer Baumaschinen AG. However, expressed as percentage of sales, administrative costs decreased slightly from Slight reduction in administrativecosts as percentage of sales

At the end of the fi rst nine months, profi t before interest, tax, depreciation and amortization (EBITDA) was at exactly the previous year's level of EUR 83.2 million. This corresponds to an EBITDA margin of 16.5 percent (previous year: 17.7 percent). In the fi rst nine months of 2007, EBITDA was affected by one-off expenses amounting to EUR 8.3 million. Without these one-off items, EBITDA would have risen by 10 percent to EUR 91.5 million. The Company's high level of investment in the rental business was one of the factors that caused depreciation and amortization to increase by 16.9 percent to EUR 20.5 million (previous year: EUR 17.5 million) during the fi rst nine months. Profi t for the period up 4.4 percent

6.6 to 6.5 percent.

Profi t before interest and tax (EBIT) totaled EUR 62.7 million after the fi rst nine months (previous year: EUR 65.7 million). This fi gure was affected by budgeted one-off expenses amounting to EUR 11 million, of which EUR 9.7 million were incurred in the fi rst half-year. Without these one-off items, EBIT would have risen 12.2 percent to EUR 73.7 million. In addition to the one-off expenses listed in the half-year report for 2007, the third quarter also entailed costs of EUR 0.7 million for restructuring measures at Weidemann GmbH as well as legal and consulting costs surrounding the merger with Neuson Kramer Baumaschinen AG.

Profi t before tax (EBT) totaled EUR 62.1 million (previous year: EUR 64.7 million). The fi nancial result after nine months amounted to EUR - 0.6 million (previous year: EUR - 0.9 million). Adjustment of deferred tax with regard to the upcoming Germantax reform of January 1, 2008 put the tax rate after nine months at 31.2 percent (previous year: 36.7 percent). Profi t for the period increased 4.4 percent to EUR 42.7 million (previous year: EUR 40.9 million), while earnings per share again reached EUR 1.00, as for the fi rst nine months of the previous year.

Finances

Cash fl ow from operating activities amounted to EUR 29.9 million (previous year: EUR 32.4 million). This is attributable to the drop in profi t due to one-off items as well as to a change in inventories and trade payables.

During the fi rst nine months of fi scal 2007, Wacker invested a total of EUR 58.4 million (previous year: EUR 29.7 million) in property, plant and equipment. Here it should be noted that investments as reported per fi xed asset schedule are adjusted to discount investments which will be settled at a later date and investments that were made last year but only paid in the period under review. Investments during this period involved expansion of the rental business in Central and Eastern Europe, construction work to enhance capacity at our production plants in Manila and Korbach and the construction of a training center at the production site in Reichertshofen.

In comparison with the same quarter last year, working capital rose 5.9 percent from EUR 178.8 million to EUR 189.2 million. This represents a 19.3-percent increase in working capital from December 31, 2006 (EUR 158.6 million). This is due to inventory build-up and increased trade receivables. Trade payables only grew slightly as a result of long payment periods for the expansion of the rental park.

Despite high levels of investment in Q3 2007 (at June 30, 2007: EUR 52.6 million), cash surplus increased by EUR 14.3 million to EUR 66.9 million after nine months (at December 31, 2006: EUR - 45.1 million). This was due to higher short-term loans for expanding the rental business as well as the effects of the IPO. IPO transforms net fi nancial debt into cash surplus

Sept. 30, 2007	Dec. 31, 2006
in EUR K	in EUR K
57,031	60,802
32,432	13,342
13,387	7,566
113,564	141
56,197	36,441
66,911	- 45,128

Cash fl ow from fi nancing activities totaled EUR 148.2 million (previous year: EUR - 15.1 million). This is mainly attributable to the EUR 165 million gross income generated by the IPO.

Assets

Net fi nancial debt

in EUR K

The balance sheet total increased to EUR 672.8 million (at December 31, 2006: EUR 475 million) at the end of the fi rst nine months thanks to income from the IPO. Non-current assets, including deferred tax, increased to EUR 257 million. This is attributable in particular to increased rental equipment inventory required for expanding the rental business. Current assets rose to EUR 415.8 million (at December 31, 2006: EUR 245.8 million) due to inventory build-up, increased trade receivables and the effects of the IPO. Equity ratio remains high

As a consequence of income generated by the IPO, equity capital rose to EUR 454.1 million (at December 31, 2006: EUR 282.4 million). This resulted in an equity ratio of 67.5 percent (at December 31, 2006: 59.5 percent).

Segment reporting by region

With its wide range of products and services, the Wacker Group caters both directly to end-customers and to dealers, rental companies and importers worldwide. The Group achieved sales growth in all three of its regions in the third quarter.

Segments Regions

in EUR K

	July 1-Sept. 30, 2007 vs.	Jan. 1-Sept. 30,2007 vs.
	July 1-Sept. 30, 2006	Jan. 1-Sept. 30, 2006
Europe
Sales	106,606 (99,614)	329,819 (291,149)
EBIT	13,823 (13,202)	41,245 (36,606)
EBT	14,340 (12,645)	40,744 (35,291)
Americas
Sales	48,452 (48,289)	156,200 (161,647)
EBIT	6,321 (8,776)	21,551 (26,923)
EBT	6,391 (8,951)	21,556 (27,238)
Asia
Sales	7,460 (6,718)	18,201 (17,848)
EBIT	1,302 (208)	2,420 (1,755)
EBT	1,254 (208)	2,325 (1,809)

Results for Europe, the Americas and Asia

Strong sales growth in Europe

In Europe, Wacker Group sales grew 13.3 percent to EUR 329.8 million in the fi rst nine months (previous year: EUR 291.1 million). Profi t before interest and tax (EBIT) prior to consolidation rose from EUR 36.6 million to EUR 41.2 million (an increase of 12.7 percent).

This growth after nine months was fuelled by strong demand for construction machinery, equipment and services throughout the entire region, with sales up in almost every country. A positive trend in commercial and industrial construction was the key factor here.

Our subsidiaries in several countries benefi ted from planned infrastructure measures subsidized by the state. This increasingly also applies to Eastern Europe and South Africa, with our subsidiary in Russia experiencing a sales increase of around 130 percent in the fi rst nine months of 2007, for instance. By contrast, the Southern Europe market was sluggish, and the fi rst signs of a long-predicted downturn in residential construction made themselves felt in Spain during the third quarter.

In Germany, consolidated external sales for Wacker Construction Equipment AG rose by a substantial 20.2 percent in the fi rst nine months to EUR 107.8 million (previous year: EUR 89.7 million). This is a particularly positive development since cancellation of the home-owners' allowance caused a drop in residential construction investment and the mild winter meant that construction projects in many areas were completed early and there were individual delays to subsequent projects.

Development in the Americas during the fi rst nine months of the year was shaped by the increased euro / US dollar parity and the uncertainties on the US property and mortgage market. Despite positive unit sales trends in individual business fi elds, overall sales in this region therefore fell 3.5 percent in this period, to EUR 156.2 million (previous year: EUR 161.6 million). However, adjusted to refl ect exchange rate fl uctuations, sales in the Americas actually rose 4 percent in the fi rst nine months. It is also worth noting that, adjusted for exchange rate fl uctuations, sales in the USA were only 0.4 percent below the record level of the previous year at the end of nine months. Profi t before interest and tax (EBIT) prior to consolidation dropped from EUR 26.9 million to EUR 21.5 million. Sales in the Americas up 4 percent discounting exchange rate fl uctuations

Q2 results in this region were almost at the previous year's level, and the third quarter saw further improvement, particularly in the USA. Q3 sales rose by 0.3 percent to EUR 48.5 million (previous year: EUR 48.3 million).

Sales
9M/2007	156,200
9M/2006	161,647
Q3/2007	48,452
Q3/2006	48,289
EBIT
9M/2007	21,551
9M/2006	26,923
Q3/2007	6,321
Q3/2006	8,776

All subsidiaries in this region reported strong demand for products, particularly within the concrete technology and utility business fi elds. Canada and South America experienced particularly strong growth in the period under review. State-subsidized infrastructure projects had a positive impact in South America, while Canada benefi ted from a positive trend in the oil and minerals industry. In Mexico, development was infl uenced by the US market and cancelled construction work due to weather conditions. A push in sales activities in the USA enabled us to broaden our customer base and acquire new rental customers there.

Americas 9M / Q3 2007 and 2006 in EUR K

Interim Review

Specializing in the manufacture of portable heating equipment, Ground Heaters, Inc. enjoyed increased demand for its products in the run-up to the peak season. Sales here rose 62.2 percent in the fi rst nine months, reaching EUR 6.6 million (previous year: EUR 4.1 million). Wacker's service-based franchise concept, EQUIPRO, Inc., also continued to develop according to plan. At EUR 546.000 sales generated through this concept in the fi rst nine months were slightly below the previous year's level.

Expansion of sales activities in Asia

In the fi rst nine months of 2007, sales in the Asia region were up 2 percent on last year, rising from EUR 17.8 million to EUR 18.2 million. Profi t before interest and tax (EBIT) prior to consolidation amounted to EUR 2.4 million (previous year: EUR 1.8 million).

We are pleased to report that the upwards trend established in the second quarter also continued during the third quarter in this region. Q3 sales rose 11 percent to EUR 7.5 million, although exchange rate movements did impact sales here. Growth remained particularly strong in Australia, New Zealand and China due to national infrastructure expansion. Discounting results from major orders, the ongoing expansion of sales activities in China led to a 92-percent increase in sales for the fi rst nine months. However, the effects of major orders placed in the fi rst half of 2006 continue to have an impact, meaning that sales for the period under review remain under the previous year's level in China. We expect to compensate for this by the end of the current fi scal year. Due to stagnation in the construction industry, the results from our subsidiaries in Japan and Thailand are still below those reported last year. The Manila production plant again reported high demand for small vibratory plates for the Asian market.

Segment reporting by business segments

Segment business segments

	Jan. 1- Sept. 30, 2007	Jan. 1- Sept. 30, 2006
	in EUR K	in EUR K
Light equipment sales	322,057	306,630
Compact equipment sales	70,787	67,765
Services sales	115,468	99,809
Minus cash discounts	4,092	3,560
Total sales	504,220	470,644

	July 1- Sept. 30, 2007	July 1- Sept. 30, 2006
	in EUR K	in EUR K
Light equipment sales	97,201	95,207
Compact equipment sales	24,118	21,929
Services sales	42,597	38,658
Minus cash discounts	1,398	1,173
Total sales	162,518	154,621

Strong demand in the light equipment business segment

The light equipment segment covers the Wacker Group's activities within the business fi elds of concrete technology, soil and asphalt compaction, demolition and utility. In the fi rst nine months of fi scal 2007, sales before discounts rose 5.1 percent from EUR 306.6 million to EUR 322.1 million in this business segment. This brought the segment's share of total sales (before discounts) to 63.4 percent.

Unit sales were again positive in all business fi elds. The heating equipment launched last year was particularly well-received by customers prior to the upcoming winter season. In Scandinavia, we will be broadening our portfolio with portable hydronic heating equipment from Ground Heaters, Inc. in Q4 2007. We intend to raise our prices by 3 percent for products in this business segment from January 1, 2008.

Addition of wheel loaders to the compact equipment business segment

The compact equipment business segment covers the manufacture and sale of compact machinery weighing approximately eight to ten metric tons. Up to September 30, 2007, this mainly comprised Weidemann GmbH operations, with compact products from Neuson Kramer Baumaschinen AG included in the results from October 1, 2007. The segment's share of total sales (before discounts) was 13.9 percent after nine months.

Sales before discounts in this segment rose 4.5 percent from EUR 67.8 million to EUR 70.8 million in the fi rst nine months of this year. Weidemann GmbH development is particularly pleasing despite preparations to move production to the new plant in Korbach. Thanks to strong demand and agricultural modernization, sales grew 16.9 percent to EUR 64.1 million (previous year: EUR 54.8 million). Discounting Group-internal sales, consolidated external sales were up 4.5 percent to EUR 51.5 million (previous year: EUR 49.3 million). This fi gure was affected by increased internal sales in the fi rst half-year, resulting from the inclusion of wheel loaders in the Company's rental park and the creation of a demo fl eet for the market launch of construction-industry wheel loaders. Reducing these activities in the third

Neuson Kramer showcased its new product portfolio at bauma 2007 in Munich. These products will expand Wacker Neuson's compact equipment range in the future.

quarter substantially improved results, assisted by growing investment in agricultural operations, which lead to signifi cantly higher unit sales. Third-quarter sales before discounts in this segment rose 10 percent to EUR 24.1 million (previous year: EUR 21.9 million) despite an ongoing shortage of industry materials due to delayed deliveries from suppliers and resultant inventory build-up.

The strong interest in our construction-industry wheel loaders launched at the bauma trade fair in April 2007 persisted during the third quarter, particularly in Germany, Austria, and now France. In the USA, we stepped up preparations for launching compact equipment in the fi rst half of 2008. We received very positive feedback from dealers on a presentation of compact products from Wacker and Neuson Kramer Baumaschinen AG in September. In Switzerland, a joint roll-out of compact equipment from Wacker and Neuson Kramer is scheduled for the fourth quarter of 2007.

The services business segment comprises the rental and after-market (repair and maintenance) business fi elds. In the fi rst nine months, sales before discounts rose signifi cantly by 15.7 percent to EUR 115.5 million (previous year: EUR 99.8 million) here. This brought the segment's share of total sales (before discounts) to 22.7 percent. Expansion of sales activities in the services business segment

Sales in the rental business in Central Europe increased 25 percent from EUR 29.4 million to EUR 36.7 million in the fi rst nine months, refl ecting our investments here. We are also continuing to expand our after-market business in various areas including Scandinavia and Eastern Europe. Demand for repair services and spare parts was high in the after-market (repair and maintenance) business fi eld, driving sales up 11.8 percent to EUR 78.7 million (previous year: EUR 70.4 million).

Strategy for the rental business

Wacker rents out construction equipment in Germany, Austria, Switzerland and the Netherlands. Our experience shows that construction companies in these countries regard equipment rental as a useful supplement to purchasing.

Wacker has identifi ed considerable growth potential for the rental business at locations in these countries. Our aim is to transfer this concept to a number of Eastern European countries (including Poland and the Czech Republic) and harness the potential for growth there. We will not be launching our rental concept in countries where we already have good working relationships with existing rental companies. Wacker neither wants nor intends to compete with these companies. This applies in particular to the US, the UK, France, Spain and Scandinavia.

Other factors that impacted on results

High production effi ciencies	Consistently strong demand for our products continues to ensure high capacity utili zation in relation to the season at our three manufacturing plants in Reichertshofen, Milwaukee and Manila as well as at the Weidemann GmbH production facilities in Diemelsee-Flechtdorf and Gotha. We have now been able to reduce the delivery period for wheel loaders to around four months. In the light equipment segment, we still deliver products within 24 to 48 hours.
Higher level of research and development	We continue to work intensively towards developing new products to be launched on the market in the coming years. Our research and development costs for the period under review therefore rose 9.9 percent, from EUR 12.5 million to EUR 13.7 million. Expressed as a ratio of sales, research and development thus amounted to 2.7 per cent (compared with 2.6 percent last year).
New jobs created	The Wacker Group HR situation refl ected the Company's growth during the fi rst nine months of fi scal 2007. At September 30, 2007, our staff totaled 2,961 employees (previous year: 2,824). This represents an increase of 4.8 percent. New hires were mainly concentrated in the sales and service areas as well as in R&D. 25 apprent ices also commenced their training at Wacker in Germany.
	Opportunity and risk report
	In the fi rst nine months of fi scal 2007, the Wacker Group continued to implement its risk management system as a key factor in business decisions and processes. The system enables us to identify and assess risks promptly and take appropriate preventative and protective measures.
	The Company identifi es the following changes to the general risk situation facing the Wacker Group as of September 30, 2007 compared with the situation reported in the

2006 annual fi nancial statements, the quarterly report to March 31, 2007, and the half-year report to June 30, 2007:

Mergers among our customer base and growing market concentration are intensifying international competition. Takeovers by fi nancial investors may also have an impact here. In Australia, for example, Coates Hire Limited received a takeover bid from the fi nancial investor Carlyle Group and the competitor company National Hire Group Limited in the third quarter of 2007. The same period saw a merger between our Denmark-based customers JJ Maskinudlejning A/S and DNE Materieludlejning A/S. These developments may have a long-term but also positive impact on Wacker Group sales and revenue, although we cannot yet provide an exact assessment at this time. The Wacker Group is countering this risk through close communication with its customers and further brand expansion.

The merger with Neuson Kramer Baumaschinen AG has positioned us as a major global player in the light and compact equipment market. The merger entails a risk of delays in distributing compact equipment using our existing sales and service network. Risks also arise from the challenges involved in harmonizing the two companies' existing sales channels, which may lead to the loss of sales partners in Europe. We are countering this risk by maintaining close ties with our sales partners.

There is also a risk that the integration process may prove more diffi cult, time-consuming or cost-intensive than anticipated. The merger and integration measures could prove to have a sustained negative impact on business development. We are countering this risk by actively involving our executives and employees and pursuing a systematic integration process.

If we encounter unexpected diffi culties in integrating Neuson Kramer Baumaschinen AG or our compact equipment business does not develop as planned, writedowns on goodwill and intangible assets accruing to Neuson Kramer Baumaschinen AG may become necessary in the future.

We are not currently aware of any other signifi cant new risks to the Wacker Group that have not already been mentioned in the Management Report for fi scal 2006, quarterly report to March 31, 2007, and half-year report to June 30, 2007. We also have not identifi ed any single or collective risks to our continued existence as a going concern that might negatively affect individual companies within the Group or the Group as whole in the foreseeable future.

Altogether, Wacker sees its own business development and the planned merger with Neuson Kramer Baumaschinen AG as good opportunities to expand the Company's leading market position during fi scal 2007. The outlook for the economy as a whole and the construction industry in particular is promising. We will be working intensively to steadily implement our strategic goals and increase unit sales, revenue and profi t.

Supplementary report

The following events since the reporting date may have an impact on future business development in the Wacker Group:

The main shareholders of Neuson Kramer Baumaschinen AG, who, together with Wacker shareholders, concluded a long-term syndicate agreement with preferential purchase rights, had signed the merger agreement on September 23, 2007. Following this, on October 18, 2007, the last remaining shareholders of Neuson Kramer Baumaschinen AG, accounting for a 10.37% interest, also signed the agreement to merge the two companies.

On October 31, 2007, the merger with Neuson Kramer Baumaschinen AG was completed and became fully effective. As announced in the IPO prospectus, 19,140,000 new and 4,349,961 treasury shares were transferred to the selling parties in exchange for the total acquisition of shares (100 percent) in Neuson Kramer Baumaschinen AG.

As stated in the IPO prospectus, this increased Wacker Construction Equipment AG share capital to a total of EUR 70,140,000. Approximately 90% of the total shares issued and transferred as part of the merger have been incorporated in the existing pool of voting rights held by Wacker family shareholders and former main shareholders of Neuson Kramer Baumaschinen AG. Preferential purchase rights are also incorporated in the pool agreement.

As of the date of publication of these interim fi nancial statements, it is only possible to provide a provisional statement of acquisition costs for the merger. This preliminary fi gure is EUR 451.5 million. The acquisition costs are determined by valuing each tranche of shares issued or transferred at the Xetra closing price on the date the capital increase by means of contributions in kind was entered in the Register of Companies.

At its meeting on October 18, 2007, the Wacker Construction Equipment AG Supervisory Board elected Hans Neunteufel, founder and former Chairman of the Executive Board at Neuson Kramer Baumaschinen AG, as the new Chairman of the Supervisory Board. Dr. Ulrich Wacker was appointed Deputy Chairman. The Supervisory Board also appointed Martin Lehner and Günther Binder (both former members of the Neuson Kramer Baumaschinen AG Executive Board) to the Executive Board of Wacker Construction Equipment AG.

Furthermore, at the meeting on November 13, 2007 the Executive and Supervisory Board decided to open a new subsidiary in India.

Outlook

Global economy set to remain favorable for remainder of 2007

The expert consensus is that economic development should remain favorable for the rest of 2007. Economic predictions for the second half-year have been adjusted upwards in line with an ifo institute survey from July 2007, in comparison with the April 2007 survey. A sustained economic upturn is forecast for Europe and Asia, in particular, and experts report favorable economic trends in Oceania and Latin and Central America. According to a survey of leading economic institutes, the upturn in Germany is set to continue in 2008.

Promising mid-term outlook for international construction

Prospects for the international construction industry remain promising, particularly in view of numerous infrastructure improvements. According to Euroconstruct, the outlook for the European construction industry is also positive, with commercial and underground construction exerting a particular infl uence here. By contrast, residential construction is set to lose momentum, especially in Spain and Ireland, but should still experience slight growth across Europe as a whole. The main growth potential stems from infrastructure projects and renovation and modernization activities. Studies report that investment in infrastructure projects as well as in residential and commercial construction is set to grow particularly strongly in China, Russia, India, the Middle East and Eastern Europe.

The US property market remains uncertain. In the USA and Canada, the Association of Equipment Manufacturers anticipates ongoing stable development for the light equipment sector in highway and industrial construction for the remainder of 2007 compared with the previous year. For 2008, the Association expects sales growth of around 4 percent. In Germany, commercial and underground construction are still the key drivers, and the Federation of the German Construction Industry expects this to remain the case in 2008.

In the construction industry, production is forecast to remain stable over the coming months, with strong demand for machinery, equipment and supplies set to continue. The German Engineering Federation (VDMA) expects the German construction and building materials industry will experience a 15-percent rise in sales for 2007 and real growth of 5 percent in 2008 compared with the previous year. Nevertheless, experts predict that exchange rate fl uctuations will lead to a slight downturn in the construction industry towards the end of this year.

Company forecast

Wacker Group aims for further sales and earnings growth The Company does not see any need to adjust its assessment of business trends for fi scal 2007 stated in the annual fi nancial statements for 2006. We anticipate that business in the fourth quarter of 2007 will remain in line with our predictions. This also includes a continuation of the extremely positive development enjoyed by Neuson Kramer Baumaschinen AG to date.

We assume here that the infl uence of the construction situation in the US on our business development will not worsen signifi cantly and that weather conditions in Europe will not have a major impact on developments compared with last year. In view of the overall economic forecast, the current outlook for the construction industry in Q4 2007, and growth realized during the fi rst nine months of 2007, the projections we published in August this year still apply. That is, we still expect to achieve sales totaling between EUR 655 million and EUR 670 million for fi scal 2007, and profi t before interest, tax, depreciation and amortization (EBITDA) ranging from EUR 110 million to EUR 115 million. We anticipate a particularly positive impact here from fourth-quarter volume and margin trends and the absence of one-off items arising in the same quarter last year that lead to an EBITDA margin of just 11.4 percent in Q4 2006.

However, following initial consolidation of Neuson Kramer Baumaschinen AG on October 1, 2007, we decided to increase our sales and earnings forecasts for fi scal 2007. The Wacker Group now expects sales of at least EUR 720 million (previously EUR 655 to 670 million) and profi t before interest, tax, depreciation and amortization (EBITDA) of at least EUR 120 million (previously EUR 110 to 115 million) adjusted to refl ect one-off items resulting from the purchase price allocation according to IFRS (initial consolidation). We anticipate that fi scal 2008 – the fi rst full fi scal year for the future Wacker Neuson SE – will see our revenue exceed the billion-euro mark.

The Wacker Group remains on a strong growth path and intends to expand its global market position. We plan to continue investing proceeds from the IPO to drive growth across our regions and business segments. The rental business will be expanded at existing locations in Central Europe and at new locations in Eastern Europe. We also aim to further expand our global sales and service network, particularly in China, Russia and India. The Wacker Group intends to continue enhancing its product portfolio and service offering across all business segments, and is planning further acquisitions in the future.

Income Statement

July 1 through September 30 and January 1 through September 30

	July 1- Sept. 30,	July 1- Sept. 30,	July 1- Sept. 30,	July 1- Sept. 30,
	2007	2006	2007	2006
	in EUR K	in EUR K	in EUR K	in EUR K
Revenue	162,518	154,621	504,220	470,644
Cost of sales	- 95,125	- 89,342	- 296,179	- 273,038
Gross profi t	67,393	65,279	208,041	197,606
Sales and service expenses	- 32,418	- 31,072	- 101,198	- 91,997
Research and development expenses	- 4,036	- 4,621	- 13,693	- 12,460
General administrative expenses	- 11,303	- 9,622	- 33,049	- 31,239
Other income	1,660	2,559	4,242	6,563
Other expenses	- 480	- 670	- 1,629	- 2,782
Profi t before interest and tax	20,816	21,853	62,714	65,691
Financial result	539	- 382	- 591	- 946
Profi t before tax	21,355	21,471	62,123	64,745
Taxes on income	- 3,431	- 8,152	- 19,393	- 23,815
Profi t for the quarter	17,924	13,319	42,730	40,930
Earnings per share (in euros)	0.38	0.32	1.00	1.00

Balance Sheet

As of September 30, 2007

	Sept. 30, 2007	Dec. 31, 2006
	in EUR K	in EUR K
ASSETS
Property, plant and equipment	176,141	147,526
Investment property	36	38
Goodwill	35,833	36,837
Other intangible assets	31,135	32,147
Investments	0	0
Deferred taxes	8,333	6,885
Other non-current assets	5,519	5,797
Total non-current assets	256,997	229,230

Inventories	109,281	100,168
Trade receivables	124,481	98,534
Marketable securities	113,564	141
Current tax receivables	3,523	2,977
Other current assets	8,758	7,522
Cash and cash equivalents	56,197	36,441
Total current assets	415,804	245,783
TOTAL ASSETS	672,801	475,013

EQUITY AND LIABILITIES
Subscribed capital	51,000	43,500
Other reserves	197,082	51,305
Treasury shares	- 36,691	- 36,691
Retained earnings	242,717	224,260
Total equity	454,108	282,374
Long-term borrowings	57,031	60,802
Deferred taxes	11,914	16,482
Long-term provisions	13,369	12,821
Total non-current liabilities	82,314	90,105
Trade payables	44,518	40,073
Short-term borrowings from banks	32,432	13,342
Current portion of long-term borrowings	13,387	7,566
Short-term provisions	8,206	8,797
Current tax payable	1,893	1,207
Other liabilities	35,943	31,549
Total current liabilities	136,379	102,534
TOTAL LIABILITIES	672,801	475,013

Statement of Changes in Equity

As of September 30

	Share	Capital	Exchange	Other neutral	Retained	Treasury
	capital	reserves	differences	changes	earnings	shares	Total
	in EUR K	in EUR K	in EUR K	in EUR K	in EUR K	in EUR K	in EUR K
Balance at
December 31, 2005	43,500	72,319	- 8,073	191	192,924	- 11,000	289,861
Exchange differences	0	0	- 9,466	0	0	0	- 9,466
Other neutral changes	0	0	0	199	0	0	199
Subtotal							- 9,267
Profi t for the quarter	0	0	0	0	40,930	0	40,930
Total profi t for the period							31,663
Dividends	0	0	0	0	- 15,621	0	- 15,621
Cost of capital	0	- 1,667	0	0	0	0	- 1,667
Balance at
September 30, 2006	43,500	70,652	- 17,539	390	218,233	- 11,000	304,236
Balance at
December 31, 2006	43,500	72,330	- 21,526	501	224,260	- 36,691	282,374
Exchange differences	0	0	- 7,246	0	0	0	- 7,246
Other neutral changes	0	0	0	161	0	0	161
Subtotal							- 7,085
Profi t for the quarter	0	0	0	0	42,730	0	42,730
Total profi t for the period							35,645
Dividends	0	0	0	0	- 24,273	0	- 24,273
New shares issued	7,500	157,500	0	0	0	0	165,000
Cost of capital	0	- 4,638	0	0	0	0	- 4,638
Balance at
September 30, 2007	51,000	225,192	- 28,772	662	242,717	- 36,691	454,108

Cash Flow Statement

January 1 through September 30

	Jan. 1- Sept. 30, 2007	Jan. 1- Sept. 30, 2006
	in EUR K	in EUR K
EBT	62,123	64,745
Depreciation and amortization	20,510	17,548
Foreign exchange result	- 5,031	- 5,469
Proceeds from sale of intangible assets and property, plant and equipment	- 53	- 1,304
Book losses from the disposal of rental equipment	1,785	710
Proceeds from sale of investments and marketable securities	161	199
Investment income	- 3,554	- 1,728
Interest expense	4,144	2,374
Changes in inventories	- 9,113	389
Changes in trade receivables and other assets	- 27,069	- 33,883
Changes in provisions	- 43	3,046
Changes in trade payables and other liabilities	15,200	11,195
Interest paid	- 3,875	- 2,205
Income tax paid	- 25,269	- 23,207
Cash fl ow from operating activities	29,916	32,410

Purchase of property, plant and equipment	- 58,441	- 29,725
Purchase of intangible assets	- 1,025	- 1,168
Proceeds from the sale of intangible assets and property, plant and equipment	660	2,950
Proceeds from sale/purchase of investments and marketable securities	- 113,423	0
Change in consolidation structure	441	- 14,148
Interest received	3,718	1,754
Cash fl ow from investing activities	- 168,070	- 40,337
New shares issued	165,000	0
Costs of increasing capital	- 4,638	- 1,667
Dividends	- 24,273	- 15,621
Proceeds from long-term borrowing	15,755	32,274
Repayment on long-term borrowings	- 3,600	- 30,117
Cash fl ow from fi nancing activities	148,244	- 15,131

Increase/decrease in cash and cash equivalents	10,090	- 23,058
Effect of exchange rates on cash and cash equivalents	681	- 999
Change in cash and cash equivalents	10,771	- 24,057
Cash and cash equivalents at beginning of period1	28,044	45,378
Cash and cash equivalents at end of period1	38,815	21,321

1 Borrowings from banks in the Group's cash pool accounts were offset.

Segmentation

January 1 through September 30

Primary segmentation (geographical segments)

	Europe	Americas	Asia	Consolidation	Group
Q3 2007	in EUR K	in EUR K	in EUR K	in EUR K	in EUR K
Segment revenue
Total external sales	144,992	69,499	13,592
Less intrasegment sales	- 30,513	- 8,579	- 619
	114,479	60,920	12,973
Intersegment sales	- 7,873	- 12,468	- 5,513
Total	106,606	48,452	7,460	0	162,518
Segment result (EBIT)
From continuing business
segments	13,823	6,321	1,302
From discontinued business
segments	0	0	0
Total	13,823	6,321	1,302	- 630	20,816
Q3 2006
Segment revenue
Total external sales	132,546	67,193	10,079
Less intrasegment sales	- 26,763	- 6,280	- 745
	105,783	60,913	9,334
Intersegment sales	- 6,169	- 12,624	- 2,616
Total	99,614	48,289	6,718	0	154,621
Segment result (EBIT)
From continuing business
segments	13,202	8,776	208
From discontinued business
segments	0	0	0
Total	13,202	8,776	208	- 333	21,853

Primary segmentation (geographical segments)

	Europe	Americas	Asia	Consolidation	Group
9M 2007	in EUR K	in EUR K	in EUR K	in EUR K	in EUR K
Segment revenue
Total external sales	469,512	228,840	34,108
Less intrasegment sales	- 114,166	- 27,959	- 1,554
	355,346	200,881	32,554
Intersegment sales	- 25,527	- 44,681	- 14,353
Total	329,819	156,200	18,201	0	504,220
Segment result (EBIT)
From continuing business
segments	41,245	21,551	2,420
From discontinued business
segments	0	0	0
Total	41,245	21,551	2,420	- 2,502	62,714
9M 2006
Segment revenue
Total external sales	407,054	225,382	29,493
Less intrasegment sales	- 91,495	- 23,388	- 2,038
	315,559	201,994	27,455
Intersegment sales	- 24,410	- 40,347	- 9,607
Total	291,149	161,647	17,848	0	470,644
Segment result (EBIT)
From continuing business
segments	36,606	26,923	1,755
From discontinued business
segments	0	0	0
Total	36,606	26,923	1,755	407	65,691

Secondary segmentation (business segments)

	July 1- Sept. 30,	July 1- Sept. 30,	Jan. 1- Sept. 30,	Jan. 1- Sept. 30,
	2007	2006	2007	2006
	in EUR K	in EUR K	in EUR K	in EUR K
Segment revenue from external customers
Light equipment	97,201	95,207	322,057	306,630
Compact equipment	24,118	21,929	70,787	67,765
Services	42,597	38,658	115,468	99,809
	163,916	155,794	508,312	474,204
Less discounts	- 1,398	- 1,173	- 4,092	- 3,560
Total	162,518	154,621	504,220	470,644

Notes to the Consolidated Interim Financial Statements for Third Quarter 2007

Accounting rules

The Wacker Construction Equipment AG consolidated interim fi nancial statements to September 30, 2007 have been prepared in accordance with International Financial Reporting Standards (IFRS) and their interpretation as valid on the reporting date. The statements adhere to International Accounting Standard (IAS) 34 for condensed statements.

All interim fi nancial statements of the domestic and foreign companies included in the consolidated statements were prepared according to the standardized Wacker Construction Equipment AG accounting principles and valuation methods.

As an information instrument, this interim report builds on the consolidated fi nancial statements. We therefore refer to the notes to the consolidated statements of December 31, 2006. The comments there also apply to the quarter and half-year statements for fi scal 2007, unless explicitly stated otherwise.

The general accounting principles and valuation methods used for the fi scal 2006 consolidated statements have also been applied to these interim fi nancial statements.

Legal changes to company structure

On May 15, 2007, trading in Wacker Construction Equipment AG shares commenced on the Prime Standard segment of the Frankfurt Stock Exchange. A total of 18,398,985 shares were placed during the IPO. 7,500,000 of these shares were from a capital increase, 8,499,117 were from the holdings of Wacker Beteiligungs GmbH & Co. KG and a family shareholder, and 2,399,868 shares were from a greenshoe option held by Wacker Beteiligungs GmbH & Co. KG. The increase in capital has resulted in net proceeds of approximately EUR 153 million for the Company. Following the IPO, the Company's share capital amounted to EUR 51 million. The Company retains 8.5 percent of treasury shares.

Seasonal fl uctuations

Due to the geographical distribution of its business, Wacker Group sales are subject to seasonal fl uctuations, which are attributable to climate conditions and construction industry trends at local level. The quarterly distribution of consolidated sales in fi scal 2006 and 2005 was as follows:

	2006 in %	2005 in %	Average in %
Quarter 1	24	22	23
Quarter 2	27	29	28
Quarter 3	25	26	25
Quarter 4	24	23	24

The turnover generated by Weidemann GmbH (acquired in 2005) is not included in the fi gures for 2005. The turnover generated by Ground Heaters,Inc. (included from March 2006 onwards) and Drillfi x AG (included from July 2006 onwards) only has a minor impact on the Group's seasonal fl uctuations and has therefore been included in the 2006 results.

The annual analysis of the distribution of consolidated sales clearly shows that seasonal fl uctuations in the Wacker Group only have a minor impact.

Earnings per share

In accordance with International Accounting Standard (IAS) 33, earnings per share are calculated by dividing the consolidated earnings by the average number of shares. There was no share dilution effect in the reporting periods shown.

	July 1-	July 1-	Jan. 1-	Jan. 1-
	Sept. 30,	Sept. 30,	Sept. 30,	Sept. 30,
	2007	2006	2007	2006
Quarterly earnings attributable to share
holders in € K	17,924	13,319	42,730	40,930
Weighted average number of issued
shares in thousands	51,000	43,500	47,250	43,500
Less treasury shares in thousands	4,350	2,393	4,350	2,393
Weighted average number of ordinary
shares in circulation during the period
in thousands	46,650	41,107	42,900	41,107
Earnings per share in €	0.38	0.32	1.00	1.00

Important events

In April, Wacker Construction Equipment AG paid out a dividend in the amount of EUR K 24,273 to shareholders. This corresponds to a dividend of EUR 0.62 per share.

The reform of corporate tax law in Germany will reduce the tax burden on Wacker Construction Equipment AG. We have therefore reevaluated long-term deferred tax in Q3 2007, resulting in tax proceeds of EUR 3.5 million.

Notes to Consolidated Interim Financial Statements

Events since reporting date

Wacker Construction Equipment AG, Neuson Kramer Baumaschinen AG (Austria) and the main shareholders of Neuson Kramer Baumaschinen AG (accounting for a total holding of 89.63 %), signed an agreement to merge both companies on September 23, 2007. The other shareholders of Neuson Kramer Baumaschinen AG, who held the remaining 10.37 % of the stock, also undertook to transfer their shares to Wacker Construction Equipment AG upon receipt of confi rmation that information requested from the fi scal authorities will be provided.

Neuson Kramer Baumaschinen AG main shareholders agreed to transfer their shares to Wacker Construction Equipment AG in exchange for 16,702,912 new shares in Wacker Construction Equipment AG from a capital increase by means of contributions in kind and 4,349,961 treasury shares in Wacker Construction Equipment AG. The Wacker Construction Equipment AG Executive Board received authorization to increase the capital at the Annual General Meeting on April 13, 2007 and approved a resolution to that effect on September 23, 2007. The Supervisory Board ratifi ed the resolution on the same day.

The capital increase by means of contributions in kind was registered on October 2, 2007. This move meant that Wacker Construction Equipment AG had completed the initial acquisition of a 80.08 % stake in Neuson Kramer Baumaschinen AG against the transfer of 2,106,773 treasury shares and the issue of 16,702,912 new shares. Issuing these new shares increased Wacker Construction Equipment AG share capital from EUR 51,000,000 to EUR 67,702,912.

On October 31, 2007, Wacker Construction Equipment AG transferred its remaining 2,243,188 treasury shares to a former main shareholder of Neuson Kramer Baumaschinen AG in exchange for 9.55 % of Neuson Kramer Baumaschinen AG shares. This transaction gave Wacker Construction Equipment AG an 89.63 % stake in Neuson Kramer Baumaschinen AG.

After the main shareholders, the remaining shareholders of Neuson Kramer Baumaschinen AG, accounting for a 10.37% interest, also signed the merger agreement on October 18, 2007 and undertook to transfer their shares to Wacker Construction Equipment AG. The remaining shareholders agreed to transfer the outstanding shares in Neuson Kramer Baumaschinen AG, which did not yet belong to Wacker Construction Equipment AG, to Wacker Construction Equipment AG in exchange for 2,437,088 new shares from a further capital increase by means of contributions in kind. The capital increase by means of contributions in kind was approved by the Executive Board and ratifi ed by the Supervisory Board on October 18, 2007, before entry in the Register of Companies on October 25, 2007. As stated in the IPO prospectus, the further capital increase by means of contributions in kind resulted in a EUR 2,437,088 rise in Wacker Construction Equipment AG share capital, from EUR 67,702,912 to EUR 70,140,000.

the capital increase by means of contributions in kind was entered in the Register of Companies. Allocation of the purchase price to individual assets and liabilities has not yet been fi nalized. The following shows the book values of the acquired assets and liabilities. Since no reliable information on current values or other assets and liabilities to be recognized in the balance sheet is available at the time of publication of the interim fi nancial statements, the excess is stated without further allocation as preliminary goodwill:

	As of purchase
	date in EUR K
Property, plant and equipment	30,465
Goodwill	3,139
Other intangible assets	4,244
Investments	2,308
Trade receivables and other receivables	100,095
Deferred tax	3,307
Inventories	55,288
Marketable securities	11,866
Cash and cash equivalents	7,093
	217,805
Borrowings	26,562
Bonds	20,000
Trade payables and other payables	35,020
Deferred tax	3,257
Provisions	18,735
Tax accruals and deferrals	11,462
Minority interests	1,690
	116,726
Pro rata equity at book value	101,079
Provisional difference before acquisition price allocation according to IFRS 3	350,458
Acquisition cost according to IFRS 3	451,537

At its meeting on October 18, 2007, the Wacker Construction Equipment AG Supervisory Board elected Hans Neunteufel the new Chairman of the Supervisory Board. Dr. Ulrich Wacker was appointed Deputy Chairman. The Supervisory Board also appointed Martin Lehner and Günther Binder to the Executive Board of Wacker Construction Equipment AG, which is headed by Dr. Georg Sick.

There have been no other signifi cant events since the interim statements reporting date.

Munich, November 9, 2007

The Executive Board

Dr. Ing. Georg Sick (CEO)

Günther C. Binder Werner Schwind

Review Report by the Auditors

For Wacker Construction Equipment AG, Munich, Germany

We have reviewed the condensed consolidated interim fi nancial statements prepared by Wacker Construction Equipment AG, comprising the condensed income statement, the consolidated balance sheets, the consolidated cash fl ow statement, the condensed statement of changes in equity as well as selected explanatory notes, together with the interim management review for the reporting period from January 1 through September 30, 2007, which are components of the quarterly fi nancial report pursuant to Article 37x, Paragraph 3 of the German Securities Trading Act (WpHG). The preparation of the condensed consolidated interim fi nancial statements in accordance with IFRS for interim reporting such as are to be applied in the EU and of the interim management review in accordance with the provisions of the German Securities Trading Act applicable to interim management reviews is the responsibility of the parent company's management. Our responsibility is to issue a review report on the condensed consolidated interim fi nancial statements and on the interim management review based on our review.

We conducted our review of the condensed consolidated interim fi nancial statements and the interim management review in accordance with German generally accepted standards for the review of fi nancial statements promulgated by the Institute of Public Auditors in Germany (Institut der Wirtschaftsprüfer – IDW). These principles require that we plan and perform our review such that, upon critical assessment, we can reasonably determine that the material concerns of the condensed consolidated interim fi nancial statements comply with IFRS for interim reporting such as are to be applied in the EU, and that the material concerns of the consolidated interim review comply with German Securities Trading Act regulations to be applied for group interim reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore does not provide the assurance attainable in a fi nancial statement audit. In accordance with our engagement, we have not performed an audit of the fi nancial statements and, accordingly, we are not in a position to express an auditor's opinion.

Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim fi nancial statements have not been prepared, in all material respects, in accordance with the IFRS for interim reporting such as are to be applied in the EU nor that the interim management review has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reviews.

Munich, November 9, 2007 Rölfs WP Partner AG Auditors

Reinke Dr. Wenk Wirtschaftsprüfer (Public Auditor) Wirtschaftsprüfer (Public Auditor)

Interim Financial Statements of Neuson Kramer Baumaschinen AG

Consolidated Income Statements

February 1 through September 30, 2007, August 1 through September 30, 2007, February 1 through October 31, 2006 and August 1 through October 31, 2006 *

	Feb. 1-Sept. 30,	Feb. 1-Oct. 31,	Aug. 1-Sept. 30,	Aug. 1- Oct. 31,
	2007	2006	2007	2006
	in EUR	in EUR	in EUR	in EUR
1. Revenue	243,440,158.73	195,041,174.81	62,232,522.49	56,065,812.28
2. Changes in inventories of the fi nished goods
and work in progress	- 5,605,893.47	- 4,125,907.83	2,974,174.72	1,750,895.04
3. Factory output	237,834,265.26	190,915,266.98	65,206,697.21	57,816,707.32
4. Other operating income	5,133,790.18	3,105,284.64	1,645,707.83	1,315,277.71
5. Cost of materials	- 151,175,067.97	- 118,691,630.33	- 44,319,200.79	- 36,656,588.64
6. Gross profi t	91,792,987.47	75,328,921.29	22,533,204.25	22,475,396.39
7. Personnel expenses	- 23,603,059.95	- 21,918,490.76	- 7,302,111.06	- 7,452,210.02
8. Depreciation and amortization expense	- 2,762,416.08	- 2,333,415.73	- 817,413.79	- 708,064.53
9. Other operating expenses	- 23,097,235.21	- 16,440,881.36	- 6,915,421.68	- 4,515,744.73
10. Total operating expenses	- 49,462,711.24	- 40,692,787.85	- 15,034,946.53	- 12,676,019.28
11. Profi t before interest and tax (EBIT)	42,330,276.23	34,636,133.44	7,498,257.72	9,799,377.11
12. Financial result	- 1,284,348.55	3,078,659.13	- 1,369,413.86	3,018,085.22
13. Profi t before tax (EBT)	41,045,927.68	37,714,792.57	6,128,843.86	12,817,462.33
14. Taxes on income	- 13,285,534.77	- 10,544,990.86	- 2,011,563.78	- 3,283,721.46
15. Profi t after tax	27,760,392.91	27,169,801.71	4,117,280.08	9,533,740.87
16. Profi t from discontinued operations	2,824.88	0.00	0.00	0.00
17. Taxes	- 5,457.96	0.00	0.00	0.00
18. Profi t from discontinued operations after tax	- 2,633.08	–	0.00	–
19. Net Income	27,757,759.83	27,169,801.71	4,117,280.08	9,533,740.87

thereof minority interests	624,723.67	383,886.65	103,943.16	17,393.82
thereof shares held by Group owners	27,133,036.16	26,785,915.06	4,013,336.92	9,516,347.05

* The company brought its fi nancial year, previously February 1 through January 31, in line with the calendar year, reducing the third quarter to two months.

Consolidated Balance Sheet

As at September 30, 2007 and January 31, 2007 *

	Sept. 30, 2007 in EUR	Jan. 31, 2007 in EUR
ASSETS:
Non-current assets:
Property, plant and equipment	30,465,098.88	25,171,136.41
Goodwill	3,139,129.00	5,075,721.29
Intangible assets	4,243,728.47	3,769,131.15
Other investments	2,308,605.95	4,432,065.95
Trade receivables and other receivables	21,146,421.33	22,763,824.42
Deferred tax	3,306,761.88	0.00
	64,609,745.51	61,211,879.22
Current assets:
Inventories	55,287,998.25	52,419,054.50
Trade receivables and other receivables	78,948,483.21	45,182,773.89
Marketable securities	11,865,760.00	5,000,687.34
Cash and cash equivalents	7,093,237.61	34,666,596.87
	153,195,479.07	137,269,112.60
Total assets	217,805,224.58	198,480,991.82

EQUITY AND LIABILITIES:
Equity:
Share capital	11,157,600.00	11,157,600.00
Capital reserves	14,504,190.89	14,504,190.89
Retained earnings	75,417,318.59	85,795,036.93
Minority interest	1,690,448.45	1,526,582.85
	102,769,557.93	112,983,410.67
Long-term liabilities:
Interest-bearing loans	5,315,684.59	5,486,121.27
Bonds	20,000,000.00	20,000,000.00
Trade payables and other liabilities	475,313.72	387,287.28
Deferred tax	3,257,086.11	241,592.61
Other long-term provisions	1,064,721.02	852,614.89
Pensions and other long-term personnel provisions	15,742,166.52	15,071,124.98
	45,854,971.96	42,038,741.03
Current liabilities:
Trade payables and other liabilities	34,545,058.83	26,934,862.12
Short-term loans	21,020,520.14	1,461,953.22
Short-term portion of interest-bearing loans	225,546.68	215,692.75
Provisions for taxes	11,461,848.03	13,365,717.15
Other provisions	1,927,721.02	1,480,614.89
	69,180,694.70	43,458,840.13
Total equity and liabilities	217,805,224.58	198,480,991.82

* The company brought its fi nancial year, previously February 1 through January 31, in line with the calendar year, reducing the third quarter to two months.

Statement of Changes in Equity

As at September 30, 2007 and October 31, 2006 *

	Equity	Minority interests	Total
Balance as at January 31, 2006	94,497,480.63	5,007,636.02	99,505,116.65
Consolidated net income	26,785,915.06	383,886.67	27,169,801.73
Dividends paid by parent company	- 10,738,621.00	0.00	- 10,738,621.00
Dividends paid by subsidiaries	0.00	- 63,800.00	- 63,800.00
Purchase of shares from minority interests	- 3,671,031.06	- 4,325,496.41	- 7,996,527.47
Exchange rate differences not affecting the P&L	42,052.22	0.00	42,052.22
Reversal of revaluation reserves	- 3,289,470.06	0.00	- 3,289,470.06
Balance as at October 31, 2006	103,626,325.79	1,002,226.28	104,628,552.07

Balance as at January 31, 2007	111,456,827.82	1,526,582.85	112,983,410.67
Consolidated net income	27,133,036.16	624,723.67	27,757,759.83
Dividends paid by parent company	- 36,505,911.60	0.00	- 36,505,911.60
Dividends paid by subsidiaries	0.00	- 471,000.00	- 471,000.00
Changes in minority interests	- 7,213.00	10,000.00	2,787.00
Exchange rate differences not affecting the P&L	- 203,320.12	0.00	- 203,320.12
Reversal of revaluation reserves	- 794,309.80	0.00	- 794,309.80
Other changes	0.02	141.93	141.95
Balance as at September 30, 2007	101,079,109.48	1,690,448.45	102,769,557.93

* The company brought its financial year, previously February 1 through January 31, in line with the calendar year, reducing the third quarter to two months.

Consolidated Cash Flow Statement

February 1 through September 30, 2007 and February 1 through October 2006 *

	Feb. 1- Sept. 30, 2007	Feb. 1- Oct. 31, 2006
	in EUR	in EUR
Profi t before tax	41,045,927.68	37,714,792.57
- Taxes on income	- 13,285,534.77	- 10,544,990.86
+(-) depreciation and write-downs (write-ups) on property, plants and equipment	2,762,416.08	2,333,415.73
-(+) gains (losses) on disposal of property, plant and equipment	- 38,377.11	4,134.89
-(+) gains (losses) on disposal of investments	- 987,536.08	- 2,022,810.61
+(-) increase (decrease) in long-term provisions	926,297.67	391,223.56
= Consolidated cash fl ow from earnings	30,423,193.47	27,875,765.28
-(+) Increase (decrease) in inventories and advance payments	- 5,279,205.76	- 178,666.01
-(+) Increase (decrease) in trade receivables and other receivables	- 31,464,056.41	4,745,326.72
-(+) Increase (decrease) in deferred tax asset	- 3,266,144.72	2,094,696.38
+(-) Increase (decrease) in deferred tax liabilities	3,015,493.50	0.00
+(-) Increase (decrease) in trade payables	9,917,954.28	- 4,861,771.37
+(-) Increase (decrease) in current provisions	512,106.13	84,266.23
+(-) Increase (decrease) in provisions for taxes	- 1,903,869.12	4,715,536.93
+(-) Changes related to exchange differences	- 90,388.68	- 123,227.50
= Consolidated cash fl ow from operating activities I	1,865,082.69	34,351,926.66
-(+) Increase (decrease) in trade receivables from fi nancing transactions	- 1,190,135.32	- 5,108,033.60
Consolidated cash fl ow from operating activities II	674,947.37	29,243,893.06

- Additions to intangible assets	- 1,633,890.91	- 69,986.37
- Additions to property, plant and equipment	- 7,217,485.72	- 965,574.02
- Purchase of investments	- 500.00	0.00
+(-) Discontinued operations	2,687,992.12	0.00
+ Disposals of property, plant and equipment	128,598.46	83,465.83
+ Sale of investments	2,238,192.51	5,153,573.71
= Consolidated cash fl ow from investing activities	- 3,797,093.54	4,201,479.15
+(-) Increase (decrease) in interest-bearing loans and borrowings from banks	19,397,984.17	- 5,308,119.83
- Dividends paid	- 36,976,911.61	- 10,738,621.00
+(-) Other changes in equity, purchase of minority interests	- 7,213.00	-7,996,527.47
= Consolidated cash fl ow from fi nancing activities	- 17,586,140.44	- 24,043,268.30

+(-) Consolidated cash fl ow from operating activities II	674,947.37	29,243,893.06
+(-) Consolidated cash fl ow from investing activities	- 3,797,093.54	4,201,479.15
+(-) Consolidated cash fl ow from fi nancing activities	- 17,586,140.44	- 24,043,268.30
= Change in cash and cash equivalents	- 20,708,286.61	9,402,103.91
+ Balance at the beginning of period	39,667,284.21	36,508,950.15
= Balance at the end of period	18,958,997.61	45,911,054.06

* The company brought its fi nancial year, previosly February 1 through January 31, in line with the calendar year, reducing the third quarter to two months.

Notes to the Consolidated Interim Financial Statements of NEUSON KRAMER Baumaschinen AG, Leonding, dated September 30, 2007

NEUSON KRAMER is an internationally active industrial group, which is involved in the development, production and sale of compact construction machinery.

a) Important accounting principles:

The group interim financial statements for NEUSON KRAMER Baumaschinen AG and its subsidiaries were drawn up in accordance with the provisions of the International Financial Reporting Standard (IFRS), specifically IAS 34 – Interim Financial Reporting. We have continued to apply the accounting and assessment principles that were in force for the financial statements for fiscal year 2006/07, without amendment.

These group interim financial statements have been compiled in EURO. The information for the 2007 group interim financial statements pertains to the balance sheet dated September 30, 2007, or the period from February 1, 2007 to September 30, 2007. As the group's balance sheet date has been moved to December 31, the current 3rd quarter only covers the months from August 1 to September 30, 2007. During the previous financial year, however, the 3rd quarter covered the months from August 1 to October 31, 2006. Therefore comparability to previous year's figures is limited.

b) Basis of consolidation

The basis of consolidation was determined following the principles of IAS 27 (Consolidated and Separate Financial Statements). Correspondingly, this group incorporates 5 (6 as at January 31, 2007) domestic and 4 international subsidiaries, which are subject to the legal and actual control of NEUSON KRAMER Baumaschinen AG.

In March 2007, the wholly-owned subsidiary MHT MECHTHYDTRONIC Ges.m.b.H. was sold to PIN Privatstiftung. March 31, 2007 was set as the date for deconsolidation.

Consequently, as at the balance sheet date of September 30, 2007, the basis of consolidation is as follows:

The balance sheet date of September 30, 2007 applies to (all of) the following companies

NEUSON KRAMER Baumaschinen AG (individual company)
NEUSON Baumaschinen GmbH
NEUSON Finance GmbH
NEUSON KRAMER FINANCE IMMORENT GmbH
Stambach Baumaschinen GesmbH
Neuson Ltd. (previously Lifton Dumpers Ltd.)
Kramer Werke GmbH
Stahl- und Maschinenbautechnik Gutmadingen GmbH
PADEM Grundstücks-Vermietungsgesellschaft mbH & Co Objekt Gutmadingen KG

The following companies are not included in the basis of consolidation:

Kramer Allrad of North America Inc.
Kramer Allrad France S.A.R.L.
Haus+Wohnen Immobilien GmbH
Kramer Wohnungsbau GmbH
NK Administration s.r.l. (previously NEUSON KRAMER France S.A.)
NK Administration Ltd (deconsolidation February 1, 2006)
MHT MECHHYDTRONIC Ges.m.b.H. (deconsolidation March 31, 2007)

c) Explanatory comments on the Income Statement

In comparison to the fi rst three quarters of fi nancial year 2006/07, the consolidated turnover of the NEUSON KRAMER Baumaschinen AG group rose organically from EUR K 195,041 to EUR K 243,440 (+24.81%). Over the same period, operating profi t (EBIT) rose to EUR K 42,330, equivalent to an increase of EUR K 7,694 or +22.22% compared with the same period in the previous year. In addition, it should be noted that the fi rst three quarters include EUR K 2,290 of expenses connected to the merger with Wacker Construction Equipment AG, Germany. Of these expenses, EUR K 577 have been passed on to Wacker Construction Equipment AG, Germany.

In the fi rst quarter of 2007, the sales revenue of the discontinued operation (MHT MECHTHYDTRONIC Ges.m.b.H) amounted before deconsolidation to EUR K 1,468 (Q1-Q3 previous year: EUR K 2,567) and the operating result amounted to EUR K 285 (Q1-Q3 previous year: EUR K 228). The net sales result for the sold company amounted to EUR K -3.

The tax burden for the period was calculated on the basis of the actual fi scal situation amounting to a group tax rate of approximately 32%.

The operating profi t (EBIT) was calculated on the basis of the cost of sales method for the period from February 1 to September 30, 2007, as follows:

COST OF SALES METHOD	EUR K
Revenue	245,376
Cost of sales	175,473
Gross profi t on sales	69,903
Marketing costs	- 13,452
Research and development costs	- 3,538
General administration costs	- 12,542
Other operational earnings	3,198
Other operational expenses	- 1,239
Operating profi t (EBIT)	42,330

The number of shares issued is unchanged at 11,157,600, meaning that a profi t of EUR 2.43 per share (previous year: EUR 2.40) was made over the fi rst eight months.

d) Explanatory comments on the Cash Flow Statement

Due to the very strong result over the fi rst three quarters, the cash fl ow from earnings rose by 9.14% from EUR K 27,876 (comparable period) to EUR K 30,423. The signifi cant growth in net working capital, particularly inventories and receivables, led to a cash fl ow of EUR K 675 from operating activities. Compared with the same period in the previous year (EUR K 29,244), this signifi es a decrease of -98%. After deduction of the cash fl ow from investment activities, which is equivalent to EUR K -3,797 (including EUR K 2,688 cash fl ow from the discontinued operation), the free cash fl ow is shown to be EUR K -3,122 (comparable period: EUR K 33,444).

e) Explanatory comments on the Balance Sheet

With regard to goodwill, the signifi cant reduction pertains to the sale of MHT MECHHYDTRONIC Ges.m.b.H. In the area of fi nance investments, the reduction related to sale of the remaining shares in the Gehl Company. This means that the NEUSON KRAMER Baumaschinen AG Group no longer holds any shares in the Gehl Company.

As a result of the strong increase in turnover, signifi cant growth was recorded in the area of net working capital, specifi cally the area of accounts receivable. The net debt is currently EUR K 27,603 (comparable period: EUR K - 6,731).

Equity decreased to EUR K 102,770 (level as at January 31, 2007: EUR K 112,983). Consequently, NEUSON KRAMER Baumaschinen AG has an equity capital ratio of 47.18%. The dividend paid by the parent company, amounting to a total of EUR K 36,505, was distributed in July 2007 (EUR K 18,505) and in September (EUR K 18,000). The decision to distribute dividends in September was made in an extraordinary general meeting on September 13, 2007. A document showing the changes in equity is enclosed with the fi nancial statements.

The primary format of the segment information is reported by production groups, refl ecting the management information system of the NEUSON KRAMER Baumaschinen AG. The secondary segment reporting (detailed only in the annual fi nancial statements) is subdivided by regions; the sales are based on customer location, the other information is based on the site of the production plants or the services provided.

The turnover and the operating profi t are displayed in the primary format.

	Actual Q3 Accumu lated	Actual Q3 Accumu lated	Actual Q3 Accumu lated	Actual Q3 Accumu lated
	Turnover	EBIT	Turnover	EBIT	Turnover	EBIT
	2007	2007	2006/07	2006/07	Change	Change
	EUR K	EUR K	EUR K	EUR K	%	%
Compact machines	214,388	36,714	177,676	33,093	20.66	10.94
Telehandlers	20,939	1,476	11,105	830	88.55	77.83
Compact loaders	3,675	535	0	0	n/a	n/a
Miscellaneous 1)	2,969	3,320	3,694	485	- 19.63	584.54
Discontinued operation	1,469	285	2,566	228	- 42.76	25.00
Total	243,440	42,330	195,041	34,636	24.81	22.22

The miscellaneous segment includes:

Stambach trade in third party products, Harvesters (from deconsolidation onwards) or in 2006/07 Compact loaders

g) Events after the balance sheet date for these interim fi nancial statements

NEUSON KRAMER Baumaschinen AG and Wacker Construction Equipment AG, Germany, signed and executed the contracts for the merger of the two companies in October 2007. On September 30, 2007, Mr Neunteufel stepped down from the Executive Board of NEUSON KRAMER Baumaschinen AG, and now holds the offi ce of Chairman of the Supervisory Board at Wacker Construction Equipment AG, Germany.

No other signifi cant events have occurred.

Leonding, November 8, 2007

The Executive Board

Günther Binder e.h. Martin Lehner e.h.

Notes

Review Report by the Auditors

To the Executive Board of NEUSON KRAMER Baumaschinen AG, Leonding, Austria

We have reviewed the accompanying condensed consolidated interim fi nancial information of NEUSON KRAMER Baumaschinen AG as at 30 September 2007. This condensed consolidated interim fi nancial information comprises the consolidated balance sheet as at 30 September 2007, and the related consolidated statements of income, changes in equity and cash fl ows for the eight month period then ended and a condensed summary of signifi cant accounting policies and other explanatory notes. The Company's management is responsible for the preparation and fair presentation of this condensed consolidated interim fi nancial information in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU. Our responsibility is to express a conclusion on this condensed consolidated interim fi nancial information based on our review. Our liability towards the Company and third parties with respect to this review is limited in accordance with para 275 Austrian Commercial Code (§ 275 UGB). Introduction

We conducted our review in accordance with Austrian standards for chartered accountants and with International Standard on Review Engagements (ISRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim fi nancial information consists of making inquiries, primarily of persons responsible for fi nancial and accounting matters, and applying analytical and other review procedures. Scope of Review

A review is substantially less in scope than an audit conducted in accordance with Austrian and/or International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all signifi cant matters that might be identifi ed in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim fi nancial information is not prepared in all material aspects in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU. Conclusion

Linz, 8. November 2007 KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

This report is a translation of the original report in German, which is solely valid.

Financial Calendar and IR / Press Contact

Financial Calendar 2007

November 15, 2007 Publication of nine-month report for fi scal 2007

Financial Calendar 2008

January 15, 2008	Investor conference, Dubai
January 22, 2008	Investor conference, Frankfurt
April 10, 2008	Press conference on fi nancial results, Munich
May 15, 2008	Publication of fi rst-quarter report for fi scal 2008
June 2008	AGM, Munich
August 14, 2008	Publication of half-year report for fi scal 2008
November 2008	Publication of nine-month report for 2008

IR / Press Contact

Imre Szerdahelyi Head of Corporate Communication

Wacker Construction Equipment AG

Preußenstraße 41 80809 Munich Germany Phone +49 - (0)89 - 354 02 - 251 Fax +49 - (0)89 - 354 02 - 298 mailto: [email protected]

www.wackergroup.com

Katrin Neuffer Managerin Investor Relations

Wacker Construction Equipment AG

Preußenstraße 41 80809 Munich Germany Phone +49 - (0)89 - 354 02 - 173 Fax +49 - (0)89 - 354 02 - 298 mailto: [email protected]

www.wackergroup.com

Publishing Details

Issued by: Wacker Construction Equipment AG, Corporate Communication department

Concept & design: Kirchhoff Consult AG, Munich, Germany

Content: Wacker Construction Equipment AG

All rights reserved. Valid November 2007. Wacker Construction Equipment AG accepts no liability for the accuracy and completeness of informationprovided in this report. Reprint only with the written approval of Wacker Construction Equipment AG in Munich, Germany.

44 Disclaimer

This publication constitutes neither an offer to sell nor an invitation to buy securities.

This document does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in The United States. The shares in Wacker Construction Equipment AG (the "Shares") may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. It is not intended to register any Shares in the United States or to conduct an offering of Shares in the United States.

This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons").

This document contains forward-looking statements which are based on the current estimates and assumptions by the corporate management of Wacker Construction Equipment AG. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Wacker Construction Equipment AG and its affi liated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Wacker's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Wacker neither plans nor undertakes to update any forward-looking statements.

Wacker Construction Equipment AG Preußenstraße 41 80809 Munich Germany Tel. +49 - (0)89 - 354 02 - 0 Fax +49 - (0)89 - 354 02 - 390 www.wackergroup.com

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Wacker Neuson SE — Interim / Quarterly Report 2007

480_10-q_2007-11-15_76b5ce5a-fb82-4231-89cb-07822d40ddab.pdf

Q3/2007

Key Figures1

July 1 through September 30 and January 1 through September 30

SALES DISTRIBUTION WACKER

BY REGION BY BUSINESS SEGMENT

Content

What are the main target markets for WACKER products?

Residential and non-residential construction – two key drivers

Our reaction to these trends

Interim Review

Overall economic trends

Global economy buoyant and stable

Interim Review

Group business development

EBITDA 9M / Q3 2007 and 2006 in EUR K

Profi t, fi nances and assets

Profi t

Finances

Assets

Segment reporting by region

Segments Regions

Results for Europe, the Americas and Asia

Americas 9M / Q3 2007 and 2006 in EUR K

Expansion of sales activities in Asia

Segment reporting by business segments

Segment business segments

Strong demand in the light equipment business segment

Strategy for the rental business

Other factors that impacted on results

Supplementary report

Outlook

Promising mid-term outlook for international construction

Company forecast

Income Statement

July 1 through September 30 and January 1 through September 30

Balance Sheet

Statement of Changes in Equity

Cash Flow Statement

Segmentation

Primary segmentation (geographical segments)

Primary segmentation (geographical segments)

Secondary segmentation (business segments)

Notes to the Consolidated Interim Financial Statements for Third Quarter 2007

Accounting rules

Legal changes to company structure

Seasonal fl uctuations

Earnings per share

Important events

Events since reporting date

Review Report by the Auditors

Interim Financial Statements of Neuson Kramer Baumaschinen AG

Consolidated Income Statements

Consolidated Balance Sheet

Statement of Changes in Equity

Consolidated Cash Flow Statement

Notes to the Consolidated Interim Financial Statements of NEUSON KRAMER Baumaschinen AG, Leonding, dated September 30, 2007

a) Important accounting principles:

b) Basis of consolidation

The balance sheet date of September 30, 2007 applies to (all of) the following companies

The following companies are not included in the basis of consolidation:

c) Explanatory comments on the Income Statement

d) Explanatory comments on the Cash Flow Statement

e) Explanatory comments on the Balance Sheet

g) Events after the balance sheet date for these interim fi nancial statements

Review Report by the Auditors

Financial Calendar and IR / Press Contact

Financial Calendar 2007

Financial Calendar 2008

IR / Press Contact

Wacker Construction Equipment AG

Wacker Construction Equipment AG

Publishing Details

44

Disclaimer

More from Wacker Neuson SE

Wacker Neuson SE Interim / Quarterly Report 2007