Wacker Neuson SE — Interim / Quarterly Report 2008

Aug 18, 2008

Half-year report 2008

Good progress on the integration front

Construction project | CityCenter Location | Las Vegas, Nevada, USA Special features | Largest privately funded construction project in the US Construction duration | November 2004 – 2009 Size/area of construction site | Approx. 1.7 km2 Wacker Neuson products on site | Vibratory plates, rammers, cutters, light towers, generators, trench rollers, external vibrators

Above: Las Vegas construction project CityCenter Left: AR36 external vibrator Center: BTS 1035 cut-off saw Right: BS602i rammer

CityCenter is designed to be a "city-within-a-city" with its own hotels, a casino, retail and entertainment space, private residences, a theater, spa, car parking garages, an on-site power plant and lots of pedestrian space. 8,000 construction workers and 39 cranes will be on site at the peak of construction. The project will create 12,000 new permanent positions. CityCenter is the single most expensive privately funded construction project in the US.

H1 2008 news

• Revenues increase by 38.3 percent to EUR 472.4 million as a result of the merger.
• EBITDA rises 14.4 percent to EUR 63.2 million.
• Upturn in revenues in Eastern Europe, South Africa, Asia, Canada and South America.
• Lively demand for agricultural machinery produced by our affi liate company Weidemann.
• Rental business maintains high level of previous year.
• Equity ratio remains in excess of 70 percent.
• Two new plants in US and Germany start production ahead of schedule.
• Integration of Neuson Kramer subgroup is proceeding better than planned.
• Positive customer feedback to our signifi cantly broadened product portfolio.

Forecast

We have revised our forecast for fi scal 2008. This precautionary measure was taken for a number of different reasons:

• Weakness on the international construction markets in the US and Western Europe.
• Rising pressure fuelled by the weakening of the dollar and rising material prices.
• Economic climate expected to infl uence customer orders for compact equipment in the second half of the year.
• Internal delivery with products from our own manufacturing plants has initial negative impact on sales and profi t.
• As a result of the merger, purchase price allocation negatively impacts profi t and loss statement.

Strategy

• We intend to pursue our growth strategy.
• Investments scheduled for fi scal 2008 will be made as planned.
• We will continue to apply stringent cost control.
• The global market introduction of compact equipment will provide us with new impetus for 2009 and beyond.
• We will continue to consider acquisitions in the future, with the aim of enhancing our product portfolio.

| 02 Foreword by Executive Board

| 04 Figures at a Glance

Segmentation

• | 06 Interim Review
• | 17 Interim Financial Statements

H1/ Income Statement Balance Sheet Statement of Changes in Equity Cash Flow Statement

Selected Explanatory Notes to the

• | 23 Consolidated Interim Financial Statements
• 2008 | 27 Additional Tables Financial Calendar, IR/Press Contact

Dear Ladies and Gentlemen,

With its solid product portfolio, strong international positioning and high equity ratio of around 72 percent, the future Wacker Neuson SE is a fi nancially sound and profi table company. Our business model puts us in a strong position, which we aim to consolidate by pursuing our long-term strategy. This includes maintaining the high levels of investment required to expand our development and manufacturing capacities.

Despite presently uncertain market conditions, the Group made good progress during the fi rst six months of this year, focusing in particular on measures aimed at cementing the merger's success. We have, for instance, been working intensive ly on the global launch of compact equipment and expanding our rental business in various countries in Central and Eastern Europe where we are not operating in competition with other customers. As part of this expansion and transition phase, we have deliberately opted to ramp up deliveries to our rental and demo fl eets using products produced at our own facilities. In view of the high demand for compact equipment, this internal sales does have an initial dampening effect on total sales and profi t, but enables us to fast-track the introduction of compact equipment and strengthen our profi table rental business in the long term.

Fueled by the merger, sales rose 38.3 percent to EUR 472.4 million in the fi rst six months of 2008. Profi t before interest, tax, depreciation and amortization (EBITDA) rose 14.4 percent to EUR 63.2 million. Evident here is a drop in margins. This must be viewed, however, in the wider context of our internal sourcing strategy. These effects are explained in greater detail in the following report.

Following strong performance in April, deteriorating conditions in key markets in the US and Western Europe had a signifi cant impact on our sales during the subsequent two months. In fact, the downturn in construction markets, fueled by the US subprime crisis, and the slowdown in business in the US, Spain and the UK also affected a large number of our competitors. This negative trend has been further exacerbated by the continued weakening of the US dollar as well as a rise in raw material prices.

Although these developments primarily impacted the light equipment business segment in the fi rst six months of this year, we expect this trend to infl uence customer orders for compact equipment over the rest of the year. This has led us to revise our forecast for fi scal 2008, despite positive performance in the agricultural sector and strong light equipment sales in Asia, South America, Eastern Europe and South Africa. We now expect sales of at least EUR 870 million and a minimum EBITDA margin of 11 percent after purchase price allocation effects.

We will continue to keep a tight rein on sales and service expenses, plus R&D and adminis trative costs, which are already well below budget. We also intend to cut back on new hires. However, we are still committed to a course of expansion and to implement ing measures aimed at achieving our medium- to long-term objectives. This particularly applies to Eastern Europe and China, where we will continue to expand our sales organization to capitalize on what remains a positive construction climate in these regions. We also intend to build on the strong performance of our affi liate company Weidemann GmbH in the agricultural sector during H1 2008 and further consolidate its position here. The on-schedule completion of Weidemann's new production plant in Korbach in November 2007 enables us to meet rising demand.

The decision to revise our forecast had a negative impact on our share price, trigger ing large-scale trading in our shares. Although we are not pleased with this development, we remain committed to our long-term strategy. This will not only enable us to capitalize on long-overdue global infrastructure projects and new residential developments, but also allow us to make the most of the positive climate in the agricultural markets – keeping us fi rmly on the path to further medium-term growth.

The merger has put us on course for a successful future and has been well received by our customers. The measures we have implemented are proceeding better than planned and are already showing signs of success. Our employees have come closer together, our processes are being gradually aligned and our product portfolios complement each other perfectly. Top product quality and best-in-class services geared towards serving our customers' needs remain at the very heart of what we do. Which is not only good news for customers, but also translates into medium-term gains for shareholders of the future Wacker Neuson SE.

Yours sincerely Dr.-Ing. Georg Sick CEO and President

Figures at a Glance

January 1 through June 30

in € million	Apr. 1 – Jun. 30, 2008	Apr. 1 – Jun. 30, 20071 Jan.1 – Jun. 30, 2008		Jan.1 – Jun. 30, 20071
	Wacker Neuson with PPA2 (without PPA)		Wacker Neuson with PPA2 (without PPA)
Key fi gures
Sales	244.2	181.3	472.4	341.7
by region
Europe	190.9	119.4	369.3	223.2
Americas	45.6	56.0	89.7	107.7
Asia	7.7	5.9	13.4	10.7
by business segment3
Light Equipment	95.0	117.5	185.9	223.1
Compact Equipment	101.9	25.0	200.2	46.3
Services	47.3	38.8	86.3	72.3
EBITDA (without PPA)	33.8 (34.2)	30.8	63.2 (64.2)	55.3
Depreciation and amortization	9.9		20.2	13.4
EBIT (without PPA)	23.9 (25.2)	23.8	43.0 (47.1)	41.9
EBT	23.9	23.4	42.4	40.8
Profi t for the period (without PPA)	16.5 (17.5)	14.2	28.8 (31.7)	24.8
Number of employees	3,793	2,932	3,793	2,932
Share
Earnings per share in €4	0.24	0.33	0.41	0.60
Key profi t fi gures
Gross profi t in %	33.9	41.4	34.1	41.2
EBITDA margin as in % (without PPA)	13.8	17.0	13.4 (13.6)	16.2
EBIT margin as in % (without PPA)	9.8	13.1	9.1 (10.0)	12.3
Key fi gures from the balance sheet			June 30, 2008	December 31, 2007
Property, plant and equipment			739.3	697.0
Current assets			510.3	517.5
Equity			898.6	912.7
Net borrowings			52.4	- 43.1
Liabilities			351.0	301.8
Equity ratio as in %			71.9	75.2
Working capital			312.3	271.5
Cash fl ow	Apr. 1 – Jun. 30, 2008	Apr. 1 – Jun. 30, 20071	Jan.1 – Jun. 30, 2008	Jan.1 – Jun. 30, 2007
Cash fl ow from operating activities	12.0	9.6	- 0.7	2.6
Cash fl ow from investing activities	24.9	- 139.6	19.5	- 162.0

Free cash fl ow 38.5 30.8 20.3 0.6

1 Excluding Neuson Kramer subgroup

2 PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated to individually acquired assets, liabilities and contingent liabilities, which are measured at fair value.

Cash fl ow from fi nancing activities - 59.8 149.2 - 34.6 159.7

3 Consolidated sales after discounts

4 2008: 70.14 million shares, 2007: 41.03 million shares

H1 2008 trends

As in Q1 2008, H1 2008 results refl ect the high level of Group investments. A signifi cant volume of compact equipment from our own production facilities was delivered to the rental and demo fl eets of other Group-owned companies. This resulted in high levels of internal sales. Consequently, the proceeds that would normally have been generated had this equipment been sold to external companies was not realized.

We have achieved a profi t before interest, tax, depreciation and amortization (EBITDA) of EUR 63.2 million. This amount has already been reduced by around EUR 20 million to refl ect consolidation effects resulting from the elimination of interim profi t. The table includes as example the effects for deliveries from the Neuson Kramer subgroup only. These machineries delivered within the Group are recognized at manufacturing cost, which affects Group EBITDA to the tune of EUR 13.4 million. In addition there is the effect of non-cash purchase price allocation for the merger in the amount of EUR 1 million for the fi rst six months of the year. Discounting these effects, Group EBITDA would have totaled EUR 77.6 million for the fi rst half year.

It is therefore important to take these factors into consideration when evaluating the company's earnings capacity.

In the balance sheet these investments and internal sales are refl ected in the higher posting for property, plant and equipment realized for rental and inventory. Demo inventories will be sold over time. Subsequently, depreciation on rental equipment has also risen. The lucrative rental proceeds from this equipment will be distributed over the coming years.

Effects from consolidation1

in € million	Jan.1 – Jun. 30, 2008	Factors affecting earnings3	PPA2	Jan.1 – Jun. 30, 2008
	Wacker Neuson with PPA2			Wacker Neuson adjusted
EBITDA	63.2	20.3	1.0	84.5
Neuson Kramer consolidation effects	–	13.4	1.0	77.6
EBITDA margin as in %	13.4	–	–	–
EBIT	43.0	19.8	4.0	66.8
EBIT margin as in %	9.1	–	–	–
Profi t for the period	28.8	14.2	2.9	45.9

You will fi nd more information in the tables on pages 27 – 28.

PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated to individually acquired assets, liabilities and contingent liabilities, which are measured at fair value.

Mainly proceeds from the sale of equipment that would normally have accrued to the company had the products been sold to third parties, but which were not realized. The reason was that these products were channeled into rental and demo fl eets as part of our investment policy to stock our fl eets with compact machines from our own production facilities.

Sales distribution

in % (previous year)

by region by business segment

H1/2008		472.4
H1/2007		341.7
H1/2006		316.0

Multi-year comparison sales

in € million

Interim review

Economic and business trends

Global economic downturn

The fi rst half of 2008 was marked by a downturn in the global economy. The big picture was overshadowed by increasing energy and raw materials prices, further weakening of the US dollar, the impact of the US subprime crisis, turbulence on the international fi nancial markets and the threat of US economic recession. While some emerging economies in Asia, in particular, reported signifi cant growth rates, economic development and industrial production lost momentum in Europe. This increasingly dampened German economic growth over the fi rst six months of the year.

Construction industry trends

Negative impact on US and European construction

The changing global economic climate, and especially the US subprime crisis, had a sustained impact on construction industry development in both the US and Europe during the fi rst half of 2008. Despite positive trends due to national infrastructure projects, Europe, in particular, was hit harder than expected. In both regions, the shift in market conditions heightened competitive intensity, resulting in price pressure.

The decline in private residential investment continued in the US. The US Census Bureau reports a 27.0 percent downturn over the year to the end of May here, with total construction investment down 6.0 percent. However, over the same period, investment in non-residential and industrial construction rose a substantial 14.5 percent. As of May 2008, residential construction accounted for around 36.0 percent of total construction investment volume, and the non-residential and industrial segment for around 64.0 percent.

In Europe, the downturn in residential construction, particularly in Spain, Ireland and Great Britain, had a negative impact on the market. In June, the UEFA European Championship in soccer stopped construction work on Austrian infrastructure projects nationwide at times. The mild winter meant that major infrastructure projects across Europe were completed ahead of schedule, resulting in time lags with respect to follow-up projects.

According to industry federations, the German construction climate developed positively during the fi rst four months of the year in spite of a downturn in new residential developments. However, they also recorded a slower rate of production in the industry since March. The German Engineering Federation (VDMA) reported that orders received by the German machine and plant construction industry between March and May 2008 were up 4 percent on the previous year.

Growing demand for agricultural equipment

The signifi cance of the agricultural industry within individual national economies continued to rise in H1 2008, with trends towards improved global food production and alternative fuel sources key driving factors. In addition, further concentration and industrialization of agricultural holdings in Europe increased the need for investment in machinery. Demand for agricultural equipment was high throughout Europe in the fi rst half-year.

Group business development

Corporate strategy continued

The Group took signifi cant further steps within its long-term growth strategy during the reporting period. The focus here remained on implementing measures to introduce compact construction equipment worldwide via our established global sales and service network, as well as on expanding our rental business in Central and Eastern Europe with products supplied by our own manufacturing facilities. We also continued integration of our merger partner, Neuson Kramer, while at the same time expanding capacity and further pursuing our regional expansion program.

After sound performance in April, signifi cant deterioration of market conditions in May and June exacerbated the downturn in demand for products in the light equipment business segment. Further devaluation of the US dollar also resulted in revenue losses during the second quarter. Unit sales of light equipment dropped sharply in the US and particularly in the Western European countries, such as Spain and Great Britain, where rental chains form the bulk of our customer base. On the other hand, we were able to increase both unit sales and revenue in the compact equipment segment in comparison with the previous year. Further acquisitions were considered but ultimately discarded during the period under review.

Increased sales due to merger

In the fi rst six months of fi scal 2008, sales increased as a result of the merger by 38.3 percent to EUR 472.4 million (previous year: EUR 341.7 million). Discounting fi gures from the Neuson Kramer subgroup, sales amounted to EUR 315.4 million – a downturn of 7.7 percent.

Expanded capacity in Norton Shores and Pfullendorf

After operations commenced at our new production plant in Manila at the start of the year, the second quarter saw completion of the facilities in Pfullendorf (Germany) and Norton Shores (USA) ahead of the scheduled start-up date. Products manufactured in Norton Shores include portable hydronic heating equipment and light towers, while our affi liate company Kramer-Werke GmbH's new Pfullendorf plant supplies all-wheel telescopic handlers and wheel loaders. In Munich, demolition of old factory facilities was completed, paving the way for the new research and development center and company headquarters. Construction work began in July and will be completed in stages between now and 2011. The new production plant for wheel dumpers in Tredegar (Wales) should be ready for commissioning in the course of 2009.

Completion ahead of the scheduled start-up date of the new facility of Kramer-Werke GmbH supplies all-wheel telescopic handlers and wheel loaders.

The new production facility at Norton Shores, USA and was also completed ahead of schedule.

Interim Review

Change to Wacker Neuson SE approved

At the Annual General Meeting of June 3, 2008 in Munich, the shareholders ratifi ed the proposal to change the Group's name and legal form to Wacker Neuson SE (Societas Europaea). They also authorized paying out a dividend of EUR 0.27 per share, along with a bonus of EUR 0.23, bringing the total to EUR 0.50 per eligible share. The actions of the Executive and Supervisory Boards were offi cially approved for fi scal 2007.

Capital market communication and share trends

Over the course of the fi rst half-year, the Executive Board regularly made an active effort to keep capital market players updated on current company developments. They accomplished this through a variety of channels, including investor conferences and national and international roadshows. Share price trends in the fi rst six months refl ected general developments on the international fi nancial markets. At the end of the period under review, the share was listed at EUR 9.44.

Share price trends

in %

WACKER SDAX DAX

Share price trends plotted against peers

Profi t, fi nances and assets

Results infl uenced by compact equipment supplies to own rental and demo fl eets

Following initial consolidation of our merger partner Neuson Kramer on October 1, 2007, the results of Neuson Kramer were consolidated in full for the fi rst time as of the fi rst quarter of 2008. This explanation of profi t, fi nances and assets/ liabilities compares the accumulated Wacker Group fi nancial data for the fi rst half of fi scal 2008, including H1 fi gures from the Neuson Kramer subgroup taking purchase price allocation into account, with Wacker Group fi nancial data reported for the fi rst half of fi scal 2007. When making these comparisons, however, it should be noted that the results from the same period of the previous year do not include fi gures from the Neuson Kramer subgroup.

H1 results were infl uenced by the high levels of Group investment and sales activities. A signifi cant volume of compact equipment from our own production facilities was delivered to the rental and demo fl eets of other Group-owned companies. As a result, this equipment did not generate the pro ceeds that would normally be achieved through sales to external companies in the period under review.

Profi t

Sales growth due to merger

Fueled by the merger, sales rose 38.3 percent to EUR 472.4 million in the fi rst six months of 2008 (previous year: EUR 341.7 million). Adjusted to discount currency fl uctuations, this corresponds to an increase of 44.4 percent. Disregard ing fi gures from the Neuson Kramer subgroup, sales amount ed to EUR 315.4 million, down 7.7 percent.

Sales

Q2/H1 2008 and 2007 in € million

Q2/2008	244.2
Q2/2007	181.3
H1/2008	472.4
H1/2007	341.7

Manufacturing costs rose to EUR 311.1 million (previous year: EUR 201.1 million). Alongside merger-related expenses, reasons for this include expansion of the rental pool and price increases for raw materials such as steel, aluminum and copper. Discounting fi gures from the Neuson Kramer subgroup, manufacturing costs totaled EUR 191.0 million.

In the fi rst half-year, gross profi t on revenue totaled EUR 161.3 million as a result of the merger (previous year: EUR 140.6 million). The gross profi t margin amounted to 34.1 percent, down from 41.2 percent the previous year. Of particular note here is the increased role played by the compact equipment business segment, which typically realizes a lower gross profi t margin but also reports lower selling expenses. Discounting fi gures from the Neuson Kramer subgroup, gross profi t amounted to EUR 124.4 million – a reduction of 11.6 percent.

Reduction in selling expenses, plus R&D and administrative costs as percentage of revenue

In the fi rst six months, selling expenses rose by 12.4 percent to EUR 77.3 million (previous year: EUR 68.8 million). This increase is attributable to the merger and new hires to support our expanding sales and rental activities, particularly in Eastern Europe. Here it should be noted that the selling expenses as a percentage of revenue have dropped for the new merged company relative to the Wacker Group for the same period last year as a result of the dealer network operated by Neuson Kramer. Discounting fi gures for the Neuson Kramer subgroup, selling expenses amounted to EUR 69.7 million.

Research and development costs were up 31.3 percent to EUR 12.7 million (previous year: EUR 9.7 million) due to the merger. It is worth mentioning in this context that former Group affi liates have also now fulfi lled the prerequisites required for capitalizing development costs, with EUR 1.9 million capitalized in H1 2008. In relation to sales, the R&D ratio fell slightly to 2.7 percent, in comparison with 2.8 percent the previous year. Discounting fi gures for the Neuson Kramer subgroup, research and development costs totaled EUR 8.0 million.

General administrative costs rose 39.8 percent to EUR 30.4 million (previous year: EUR 21.7 million). This increase is attributable to an increase in the workforce following the merger, and to merger costs, including those of renaming the subsidiaries Wacker Neuson. Expressed as percentage of sales, administrative costs were at 6.4 percent (previous year: 6.4 percent). Discounting fi gures for the Neuson Kramer subgroup, administrative costs amounted to EUR 22.6 million. Expressed as a percentage of sales, selling expenses, R&D and administrative costs were down to 25.5 percent as a result of the merger (previous year: 28.9 percent).

Profi t impacted by downturn in light equipment unit sales, US dollar devaluation, compact equipment supplies to own rental pool and purchase price allocation

In the fi rst half-year, profi t before interest, tax, depreciation and amortization (EBITDA) rose 14.4 percent from EUR 55.3 million to EUR 63.2 million as a result of the merger, taking purchase price allocation into account. The EBITDA margin amounted to 13.4 percent (previous year: 16.2 percent). Purchase price allocation amounted to EUR 1.0 million. Excluding fi gures from the Neuson Kramer subgroup, EBITDA totaled EUR 40.2 million.

EBITDA

Q2/H1 2008 and 2007 in € million

Q2/2008	33.8
Q2/2007	30.8
H1/2008	63.2
H1/2007	55.3

Depreciation and amortization increased from EUR 13.4 million to EUR 20.2 million in H1. This was primarily due to the merger, increased investment in the Central and Eastern European rental business, capacity expansion and purchase price allocation. Discounting fi gures for the Neuson Kramer subgroup, depreciation and amortization amounted to EUR 15.2 million.

Profi t before interest and tax (EBIT) rose 2.7 percent to EUR 43.0 million as a result of the merger (previous year: EUR 41.9 million), taking purchase price allocation into account. The EBIT margin amounted to 9.1 percent (previous year: 12.3 percent). Purchase price allocation amount ed to EUR 4.0 million. Excluding Neuson Kramer subgroup fi gures, EBIT totaled EUR 24.9 million.

EBIT

Q2/H1 2008 and 2007 in € million

Q2/2008	23.9
Q2/2007	23.8
H1/2008	43.0
H1/2007	41.9

The fi nancial result after six months amounted to EUR - 0.6 million (previous year: EUR -1.1 million). Profi t before tax (EBT) increased 4.1 percent to EUR 42.4 million as a result of the merger (previous year: EUR 40.8 million). Without taking Neuson Kramer subgroup fi gures into consideration, EBT amounted to EUR 26.2 million. Tax expenditure fell to EUR 13.2 million (previous year: EUR 16.0 million). The tax ratio decreased to 31.1 percent, from 39.2 percent the previous year, as a result of the German tax reform of January 1, 2008.

As a result of the merger and allowing for purchase price allocation, profi t for the fi rst six months increased to EUR 28.8 million, 16.0 percent above the previous year's result of EUR 24.8 million. Purchase price allocation totaled EUR 2.9 million. Discounting fi gures for the Neuson Kramer subgroup, profi t for the period amounted to EUR 17.2 million.

Based on the number of ordinary shares in circulation during the period, which totaled 70.14 million, earnings per share amounted to EUR 0.41 (previous year: EUR 0.60 at 41.03 million shares).

Earnings were also negatively impacted by the euro's advance against the dollar relative to the same period last year with an average exchange rate of EUR 1 to USD 1.55 (previous year: EUR 1 to USD 1.33).

Finances

Investments considerably higher than previous year Cash fl ow from operating activities amounted to EUR - 0.7 million at the end of H1 2008 (previous year: EUR 2.6 million).

Once again, cash fl ow in the fi rst half-year was characterized by continued high levels of investment. In the fi rst six months of fi scal 2008, we invested a total of EUR 57.5 million in property, plant and equipment (previous year: EUR 41.3 million). This included expansion of the rental business in Central and Eastern Europe, which accounted for investments to the sum of EUR 25.7 million, plus measures to expand capacity with the new manufacturing plants in Norton Shores (USA) and Pfullendorf (Germany). Cash fl ow from investment activities came to EUR 19.5 million in the reporting period (previous year: EUR - 162.0 million).

Cash fl ow from fi nancing activities totaled EUR - 34.6 million, down from EUR 159.7 million the previous year. The previous year's fi gure was primarily due to the issue of new shares at a value of EUR 165 million. Free cash fl ow amounted to EUR 20.3 million (previous year: EUR 0.6 million).

Free Cashfl ow

in € K	H1/2008	H1/2007
Cash fl ow from operating activities	- 675	2,598
Cash fl ow from investment activities	19,484	- 162,027
Changes to consolidation structure	1,501	- 441
Costs of procuring capital	- 40	- 4,523
Issue of new shares	0	165,000
Free cash fl ow	20,270	607

The change in working capital in relation to sales refl ects the company's expansion policy. At EUR 312.3 million, working capital was up 15.0 percent as a result of merger-related expenses (at December 31, 2007: EUR 271.5 million). Inventory increased to EUR 192.5 million (at December 31, 2007: EUR 175.1 million) due to activities surrounding the global compact equipment launch, production delays due to supply bottlenecks for compact equipment components, and an increased volume of goods in circulation. Trade payables dropped to EUR 61.8 million (at December 31, 2007: EUR 63.1 million). Trade receivables reached EUR 181.6 million (at December 31, 2007: EUR 159.5 million).

Assets

Equity ratio remains high

The balance sheet total for the fi rst six months of the year is EUR 1,249.6 million (EUR 1,214.5 million at December 31, 2007). Assets rose to EUR 689.5 million (EUR 651.5 million at December 31, 2007). This is due in particular to an increase in property, plant and equipment and expansion of the rental pool. Despite inventory build-up and increased trade receivables, current assets dropped to EUR 510.3 million (down from EUR 517.5 million at December 31, 2007) due to changes in securities.

Equity in the reporting period decreased to EUR 898.6 million (EUR 912.7 million at December 31, 2007). This resulted in an equity ratio of 71.9 percent (at December 31, 2007: 75.2 percent). Total non-current liabilities dropped to EUR 102.6 million (EUR 107.1 million at December 31, 2007). Total current liabilities grew to EUR 248.4 million (EUR 194.6 million at December 31, 2007).

At the end of H1 2008, net fi nancial debt totaled EUR 52.4 million (EUR - 43.1 million at December 31, 2007).

Segment reporting

With its wide range of products and services, the Group caters both directly to end-customers and to dealers, rental companies and importers worldwide.

Results for Europe, the Americas and Asia

Sales up in Europe due to merger

In Europe, sales after six months reached EUR 369.3 million (previous year: EUR 223.2 million) – an increase of 65.4 percent attributable to the merger. At 78.2 percent of total sales (previous year: 65.3 percent), this region was again the strongest sales driver. Profi t before interest and tax (EBIT) rose from EUR 27.4 million to EUR 33.6 million. Discounting the Neuson Kramer subgroup, sales for the region totaled EUR 210.7 million.

Europe

Q2/H1 2008 and 2007

in € million

Sales

EBIT

Q2/2008		19.1
Q2/2007		15.9
H1/2008		33.6
H1/2007		27.4

Overall, growing customer uncertainty was evident here refl ecting the current market climate. Countries particularly affected by this included Spain and Great Britain. However, the fi rst half-year also saw healthy demand in this region both for services and for compact equipment targeted at the construction and agricultural industries, in particular.

Performance was positive in Eastern Europe and South Africa. In Poland, preparations are underway to establish a new branch offi ce in Krakow. During the second quarter, the French, Spanish and Hungarian affi liates assumed responsibility for distributing compact equipment products acquired through the merger.

Compact equipment market introduction continued in US

In the fi rst half-year, sales in the Americas were down 16.7 percent on the previous year, to EUR 89.7 million (previous year: EUR 107.7 million). Profi t before interest and tax (EBIT) fell from EUR 15.2 million to EUR 13.2 million. However, discounting exchange rate fl uctuations, sales in this region only decreased by 6.2 percent. Following the merger, this region's share of total sales amounted to 19.0 percent (previous year: 31.5 percent).

Americas

Q2/H1 2008 and 2007 in € million

Sales

EBIT

Q2/2008				5.6
Q2/2007				8.5
H1/2008				13.2
H1/2007				15.2

In the US, we continued to implement measures for introducing compact equipment and thus expanding our product offering. We are pleased to report that during the fi rst six months of this year, we were already able to sign numerous agreements with dealers for exclusive distribution of Wacker Neuson products. Considered in the local currency (US dollars), the US production and sales affi liate, Wacker Neuson Corporation, recorded revenue only 2.0 percent below the previous year's level. The affi liate achieved this by increasing its exports to Europe and Asia. Performance was also positive in Canada, Mexico and South America. In Canada, we concluded an agreement with the 4-Way Equipment Rentals company for distribution of the complete product portfolio.

Expansion of sales activities in Asia

In the fi rst half of 2008, sales in the Asia region were up 24.7 percent on the previous year, from EUR 10.7 million to EUR 13.4 million. This represents a 32.3 percent increase discounting exchange rate fl uctuations. Profi t before interest and tax (EBIT) totaled EUR 1.1 million (previous year: EUR 1.1 million). Following the merger, this region's share of total sales amounted to 2.8 percent (previous year: 3.1 percent).

Asia

Q2/H1 2008 and 2007 in € million

Sales

Q2/2008	7.6
Q2/2007	6.0
H1/2008	13.4
H1/2007	10.7

EBIT

Q2/2008	0.8
Q2/2007	0.6
H1/2008	1.1
H1/2007	1.1

In order to capitalize more effectively on the positive construction climate in this region, we improved our market presence by stepping up sales operations during the fi rst half-year. Revenue in China rose 68.5 percent. Performance also remained positive in Australia, New Zealand and Thailand, but was down slightly in Japan.

Results for light equipment, compact equipment and services segments

Sales by business segment

H1
in € K	Jan. 1 – Jun. 30, 2008	Jan. 1 – Jun. 30, 2007
Segment revenue from external customers
Light Equipment	186,808	224,856
Compact Equipment	201,252	46,669
Services	86,772	72,871
	474,832	344,396
Less cash discounts	- 2,399	- 2,694
Total	472,433	341,702

Sales by business segment

Q2

in € K	Apr. 1 – Jun. 30, 2008	Apr. 1 – Jun. 30, 2007
Segment revenue from external customers
Light Equipment	95,538	118,520
Compact Equipment	102,428	25,236
Services	47,596	39,111
	245,562	182,867
Less cash discounts	- 1,374	- 1,542
Total	244,188	181,325

Technical innovations

Two-cycle WM 80 engine

• Proprietary two-cycle engine for rammers and gas breakers now delivers more power
• Meets EU emissions standards by reducing hydrocarbon emissions by over 70 percent, and carbon monoxide emissions by around 50 percent

• Signifi cantly reduces fuel consumption

• Reversible vibratory plates

• Wacker Neuson's reversible vibratory plates travel forwards and backwards to deliver best-in-class compaction performance
• Innovative technology signifi cantly cuts vibration impact for the operator
• Specially designed shockmounts and new low-vibration handles enhance operator experience and increase effi ciency levels.

Reduced product sales in light equipment segment

The light equipment segment covers the Group's activities within the business fi elds of concrete technology, soil and asphalt compaction, demolition and utility. In this segment, sales before discounts fell to EUR 186.8 million in the fi rst six months of fi scal 2008 (previous year: EUR 224.9 million). The primary causes of this were dwindling new equipment sales in the US, Spain and Great Britain (including sales to major customers), and the weakening of the US dollar. Discounting exchange rate fl uctuations, sales totaled EUR 211.7 million. Following the merger, this segment's share of total sales (before discounts) amounted to 39.3 percent (previous year: 65.3 percent).

The second quarter saw the launch of further new products in this business segment, including a new line of internal vibrators and new trowels for the concrete technology fi eld.

Increased revenue in compact equipment segment

In the fi rst six months of 2008, sales before discounts in the compact equipment segment (which covers the manufacture and sale of compact equipment up to a weight of around 14 tons) rose from EUR 46.7 million to EUR 201.3 million due to the merger. This boosted the segment's share of total sales (before discounts) following the merger to 42.4 percent (previous year: 13.5 percent). However, it should be noted that some of this compact equipment was used to stock our own rental pool and build up demo fl eets, so this portion of sales should be deconsolidated.

Development in this business segment was characterized by measures to launch compact equipment via our global sales and service network, primarily in Spain, Switzerland, France and the US. Customer feedback on the products has been positive. During the second quarter, we launched two new skid-steer loaders. Effective April 1, 2008, we increased the prices of excavators, skid-steer loaders and dumpers by be t ween 1.5 and 4.0 percent, according to product group.

Demand for agricultural products also remained high, for instance for articulated wheel loaders and Hoftrac models from Weidemann GmbH and telescopic handlers from Kramer Werke. These devices increase the effi ciency of everyday agricultural operations, making them more cost-effective. Sales by our affi liate company Weidemann GmbH to external customers were up 10.9 percent in the fi rst half-year, from EUR 33.7 million to EUR 37.4 million.

Positive performance in services segment

Thanks to the merger, the fi rst half-year saw an increase in sales before discounts in the services segment. This segment comprises the fi elds after-market (repair and maintenance) and rental business in Central and Eastern Europe. Sales were up 19.1 percent in the period under review, to EUR 86.8 million (previous year: EUR 72.9 million). Follow ing the merger, this segment's share of total sales (before dis counts) amounted to 18.3 percent (previous year: 21.2 percent).

Increased demand in the after-market business fi eld (which covers the traditional repair and spare parts business) fueled sales growth of 27.5 percent, to EUR 65.3 million (previous year: EUR 51.2 million). In response to this rising demand, we again invested heavily in expanding the rental pool in the fi rst six months of the year and established further rental stations in Eastern Europe. Sales from the rental business in Central and Eastern Europe remained almost unchanged at EUR 21.4 million (previous year: EUR 21.6 million). During the second quarter, we expanded our rental offering to include Hungary. Altogether, we invested EUR 25.7 million in expanding Central and Eastern European rental operations by supplying products from our own manufacturing facilities over the fi rst half-year.

Other factors that impacted on results

Delivery periods within normal range

Capacity utilization at our manufacturing plants refl ected market conditions and demand for our products during the fi rst half-year. While products from the light equipment segment can be delivered within 24 to 48 hours, delivery periods for compact equipment currently fall within a normal range of two to fi ve months.

Strong attendance at Spanish trade fair

The company attracted a high number of visitors and held rewarding discussions with customers at numerous trade fairs in Europe, including Spain, Great Britain and the Netherlands. Customer feedback on our extensive product and service offering was consistently positive.

Increased headcount due to merger

At June 30, 2008, Group headcount totaled 3,793 (previous year: 2,932). This fi gure does not refl ect the actual number of employees, but the number of positions as calculated on a full-time basis. The high level of growth here is attributable to the merger and to new hires in sales and service. At December 31, 2007, the Group employed 3,659 people.

Changes to the opportunity and risk situation

Despite the current downturn in the global economy and construction industry, we see sound medium to long-term growth prospects for the Group. These stem both from organic growth and from the merger with Neuson Kramer. We will be working intensively to continue our steady implementation of the goals outlined in our business strategy, which include increasing unit sales, revenue and profi t.

In the fi rst half of 2008, the Group continued to implement its risk and opportunity management system as a key steering tool for business decisions and processes. This system covers planning for each of the core business segments; comprehensive Group reporting covering all business processes and affi liates. These reports are regularly analyzed, discussed and evaluated and made available to all decisionmakers. It also includes process defi nitions for all business segments and Group auditing.

The company has identifi ed the following risks to the Group as of June 30, 2008 that deviate from the 2007 annual fi nancial statements and Q1 report for fi scal 2008.

As a result of the current macroeconomic and construction industry conditions, defi ned above all by the subprime crisis on the US market and the weakening of the US dollar, the Group is exposed to a negative climate on certain national markets. The effects of this may include a further drop in product sales due to changed customer order patterns and increased exposure to local parity risks. These effects had a defi nite impact in the US and various European countries in the fi rst half of 2008, and we anticipate that this will continue for the rest of the year. At June 30, 2008, the volume of open orders for compact equipment for the construction and ag -

ricultural industries was over 12.0 percent below the equivalent fi gure for the previous year. The company is mitigating these risks by adopting proactive go-to-market strategies in these regions and stepping up activities in growth segments such as agriculture and dynamic markets such as Russia.

The Group requires components and raw materials to use in product manufacturing – particularly steel, aluminum and copper. During the fi rst half-year, prices for energy and key raw materials, particularly steel, have risen. Our production uses structural steel components and cast parts, for in stance, as well as hydraulic and chassis components containing varying amounts of crude steel. A further increase in steel prices and corresponding impact on manufacturing costs is anticipated over the course of the year. We are actively countering this by aiming for longer-term agreements in our negotiations with suppliers, particularly in the compact equipment segment. The company is also stepping up procurement from the Asian market. Our second-tier affi liate in Serbia is set to manufacture and supply the Group with steel construction components for compact equipment.

We are not currently aware of any other signifi cant risks to the Group. We have not identifi ed any individual 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.

Supplementary report

There have been no signifi cant events since the reporting date that could have an impact on future Group business development.

At its meeting on July 4, 2008, the Supervisory Board determined with the Executive Board that the company would purchase a site in the Austrian district of Hörsching, in close proximity to Linz airport. This could potentially be used for a new manufacturing plant to replace the previous facility, which is operating at full capacity. An option agreement for the acquisition of this site was signed on July 30, 2008. The company has not yet decided whether to proceed with construction work.

On July 21, 2008, Wacker Beteiligungs GmbH & Co. KG i.L., Munich, Germany, informed us in accordance with Article 21 of the German Securities Trading Act (WpHG) that its voting rights in our company fell below the threshold of 3 per cent on July 17, 2008, due to the transfer of shares back to its limited partners against a reduction in the limited partner stake. At that date, voting shares amounted to 0 per cent (0 voting rights). Wacker Beteiligungs GmbH & Co. KG was founded in October 2006 to purchase the shares in Wacker Construction Equipment AG held by a former fi nancial investor (a fund managed by Lindsay Goldberg & Bessemer GP LLC) and former consultants of the company, and subsequently to resell these shares, primarily within the IPO. Formed for this purpose, Wacker Beteiligungs GmbH & Co. KG i.L. is now being dissolved. Via this organization, its partners held an indirect interest in Wacker Construction Equipment AG. These shares have now been directly allocated to the shareholders (direct interest).

Outlook

Slowdown in global economic expansion

According to a joint survey by leading economic research institutes, global economic expansion is expected to slow down during 2008 as a result of current conditions. The biggest risks remain the uncertain progression of the fi nancial crisis, progressive weakening of the US dollar and the sustained increase in raw materials prices. Experts anticipate gradual recovery of the US economy only in 2009. In Asia and the euro zone, infl ation is expected to rise in the second half-year. Due to the prevailing global economic conditions, experts forecast an ongoing adverse impact on German economic development during the second half of 2008.

International construction prospects dampened but mid-term outlook good

The international construction industry is facing dampened prospects for 2008, although numerous infrastructure improvements are being planned and implemented worldwide, including highway construction, telecommunications, and transport and traffi c projects. In India, for instance, industry sales are set to quadruple to USD 13 billion by 2015 due to increased demand for construction equipment in connection with infrastructure projects. In the US, experts anticipate that the downturn in private residential construction will continue over the course of 2008. As a result of the economic slowdown and US subprime crisis, a further reduction in construction investment is expected in the euro zone, particularly in residential construction. Experts from Euroconstruct, the European research and consulting network, predict a slight drop in construction activity in Europe during 2008 and have recently reduced their forecast for annual construction volume growth in Western Europe to 1.5 percent for the period from 2008 to 2010. Positive momentum should stem from nonresidential and underground construction, in particular, due to essential infrastructure projects and renovation and modernization work. Driven by these sectors, the Federation of the German Construction Industry forecasts nominal growth of 4.0 percent in construction sales and 1.1 percent in construction investment for 2008.

The European agricultural machinery market is forecast to experience annual growth of 2.7 percent until 2010. Euroconstruct expects that increasing concentration and industrialization of agricultural holdings in Europe will raise demand for investment in machinery.

Growth targets for sales and earnings

The company's assessment is that global economic trends in the construction industry are characterized by growing uncertainty. The rapid and increasingly negative impact of the US subprime crisis, the degree of which has been diffi cult to foresee, has had a particularly adverse effect on the company's key construction markets in the US and, increasingly, Western Europe, and therefore on product sales. We anticipate that this will remain the case in the second half-year, with worsening consequences on customer order patterns for products in the light and compact equipment segments. Due to altered market conditions, we are now anticipating sales of at least EUR 870 million for fi scal 2008. Including purchase price allocation, the EBITDA margin should amount to at least 11 percent. This also takes account of consolidation effects from eliminating interim profi t as a result of internal delivery into the Group's own rental pool and building up the demo fl eet for the compact equipment launch via our global sales and service network.

For the rest of fi scal 2008 – the fi rst full year for the future Wacker Neuson SE – integration and implementing market penetration measures will remain top priorities, and we intend to continue with our investment activities as planned. We aim to go on driving growth across all regions and business segments, further extend our sales and service network across the globe, expand our rental business in Central and Eastern Europe and broaden our portfolio by rolling out numerous new products and product variants across all business fi elds. Process optimization remains a major focus for our company, and we will continue to apply stringent cost control.

The Group occupies a strong position in the wake of the merger. Taking into account the forecast global development for the construction and agricultural industries, we view the Group's medium-term prospects as positive. Alongside the recognized quality of our post-merger products and services, our global presence and customer proximity in our key target markets provides a sound basis for our efforts to consolidate our strong market position worldwide and increase sales and profi t in the medium to long term. Our intention is to achieve this largely through organic growth, although we will continue to consider acquisitions along the way. We are particularly looking to harness sales opportunities by launching compact equipment through our established global sales and service network.

Income Statement

April 1 through June 30 and January 1 through June 30

in € K	Apr. 1 – Jun. 30, 20081	Apr. 1 – Jun. 30, 2007	Jan.1 – Jun. 30, 20081	Jan.1 – Jun. 30, 2007
Revenue	244,188	181,325	472,433	341,702
Cost of sales	- 161,306	- 106,258	- 311,121	- 201,054
Gross profi t	82,882	75,067	161,312	140,648
Sales and service expenses	- 39,907	- 35,841	- 77,329	- 68,780
Research and development expenses	- 6,071	- 5,203	- 12,681	- 9,657
General administrative expenses	- 14,229	- 11,054	- 30,395	- 21,746
Other income	1,267	1,475	4,301	2,582
Other expenses	- 27	- 617	- 2,186	- 1,149
Profi t before interest and tax (EBIT)	23,915	23,827	43,022	41,898
Financial result	- 24	- 434	- 589	- 1,130
Profi t before tax (EBT)	23,891	23,393	42,433	40,768
Taxes on income	- 7,226	- 9,171	- 13,189	- 15,962
Profi t before minority interests	16,665	14,222	29,244	24,806
Minority interests	- 208	0	- 459	0
Profi t	16,457	14,222	28,785	24,806
Earnings per share in euros	0.24	0.33	0.41	0.60

1 PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated to individually acquired assets, liabilities and contingent liabilities, which are measured at fair value.

Balance Sheet

Balance at June 30

in € K	Jun. 30 , 2008	Dec. 31, 2007
Assets
Property, plant and equipment	260,365	221,869
Investment property	2,014	2,105
Goodwill	325,200	325,676
Intangible assets	98,817	100,220
Other investments	3,105	1,649
Deferred taxes	15,173	10,994
Other non-current assets	34,680	34,523
Total non-current assets	739,354	697,036
Inventories	192,506	175,130
Trade receivables	181,612	159,477
Marketable securities	9,902	88,656
Current tax receivables	5,064	3,492
Other current assets	14,203	13,903
Cash and cash equivalents	107,004	76,816
Total current assets	510,291	517,474
Total assets	1,249,645	1,214,510
Equity and liabilities
Subscribed capital	70,140	70,140
Other reserves	577,903	586,186
Retained earnings	247,828	254,113
Equity before minority interests	895,871	910,439
Minority interests	2,739	2,280
Total equity	898,610	912,719
Long-term borrowings	42,127	44,219
Deferred taxes	31,091	33,724
Long-term provisions	29,407	29,200
Total non-current liabilities	102,625	107,143
Trade payables	61,803	63,084
Short-term borrowings from banks	121,320	72,103
Current portion of long-term borrowings	5,875	6,073
Short-term provisions	9,665	9,324
Current tax payable	1,469	1,366
Other current liabilities	48,278	42,698
Total current liabilities	248,410	194,648
Total liabilities	1,249,645	1,214,510

Statement of Changes in Equity

Balance at June 30

	Sub scribed	Capital	Exchange differ	Other neutral	Retained	Treasury	Equity before minority	Minority	Total
in € K	capital	reserves	ences	changes	earnings	shares	interests	interests	equity
Balance at December 31, 2006	43,500	72,330	- 21,526	501	224,260	- 36,691	282,374	0	282,374
Exchange differences	0	0	- 2,145	0	0	0	- 2,145	0	- 2,145
Other neutral changes	0	0	0	182	0	0	182	0	182
Subtotal							- 1,963	0	- 1,963
Midyear result	0	0	0	0	24,806	0	24,806	0	24,806
Total Pofi t for the period							22,843	0	22,843
Dividends	0	0	0	0	- 24,273	0	- 24,273	0	- 24,273
New shares issued	7,500	157,500	0	0	0	0	165,000	0	165,000
Costs of procuring capital	0	- 4,523	0	0	0	0	- 4,523	0	- 4,523
Balance at June 30, 2007	51,000	225,307	- 23,671	683	224,793	- 36,691	441,421	0	441,421
Balance at December 31, 2007	70,140	618,450	- 32,845	581	254,113	0	910,439	2,280	912,719
Exchange differences	0	0	- 8,332	0	0	0	- 8,332	0	- 8,332
Other neutral changes	0	0	0	89	0	0	89	0	89
Subtotal							- 8,243	0	- 8,243
Midyear result	0	0	0	0	28,785	0	28,785	459	29,244
Total profi t for the period							20,542	459	21,001
Dividends	0	- 40	0	0	- 35,070	0	- 35,070	0	- 35,070
Costs of procuring capital			0	0	0	0	- 40	0	- 40
Balance at June 30, 2008	70,140	618,410	- 41,177	670	247,828	0	895,871	2,739	898,610

Cash Flow Statement

For the period from January 1 through June 30

	Jan. 1 – Jun. 30, 2008	Jan.1 – Jun. 30, 2007
in € K
EBT	42,433	40,768
Depreciation and amortization	20,178	13,362
Foreign exchange result	- 5,032	510
Gains/losses from sale of intangible assets and property, plant and equipment	- 25	77
Book losses from the disposal of rental equipment	953	1,539
Gains/losses from sale of investments and marketable securities	134	182
Investment income	- 2,855	- 1,616
Interest expense	3,444	2,747
Changes in inventories	- 17,376	- 5,506
Changes in trade receivables and other assets	- 22,461	- 41,849
Changes in provisions	548	752
Changes in trade payables and other liabilities	4,297	12,217
Interest paid	- 3,442	- 2,427
Income tax paid	- 21,471	- 18,158
Cash fl ow from operating activities	- 675	2,598
Purchase of property, plant and equipment	- 57,539	- 41,252
Purchase of intangible assets	- 3,624	- 704
Proceeds from the sale of property, plant and equipment and intangible assets	670	414
Proceeds from sale/purchase of marketable securities	77,273	- 122,548
Change in consolidation structure	- 1,501	441
Interest received	4,205	1,622
Cash fl ow from investing activities	19,484	- 162,027
New shares issued	0	165,000
Costs of procuring capital	- 40	- 4,523
Dividends	- 35,070	- 24,273
Proceeds from long-term borrowings	3,242	27,123
Repayment on long-term borrowings	- 2,700	- 3,600
Cash fl ow from fi nancing activities	- 34,568	159,727
Increase/decrease in cash and cash equivalents	- 15,759	298
Effect of exchange rates on cash and cash equivalents	- 438	- 1,583
Change in cash and cash equivalents	- 16,197	- 1,285
Cash and cash equivalents at beginning of period1	38,792	28,044
Cash and cash equivalents at end of period1	22,595	26,759

Borrowings from banks from the Group's cash pool accounts are netted.

Segmentation

For the period from January 1 through June 30

Primary segmentation (geographical segments)

in € K	Europe	Americas	Asia	Consolidation	Group
Q2 2008
Segment revenue
Total external sales	271,179	71,148	11,625
Less intrasegment sales	- 66,807	- 10,227	- 471
	204,372	60,921	11,154
Intersegment sales	- 13,501	- 15,245	- 3,513
Total	190,871	45,676	7,641	0	244,188
Segment result (EBIT)
From continuing business segments	19,098	5,623	786
From discontinued business segments	0	0	0
Total	19,098	5,623	786	- 1,592	23,915
Q2 2007
Segment revenue
Total external sales	170,064	81,861	10,848
Less intrasegment sales	- 41,478	- 11,720	- 464
	128,586	70,141	10,384
Intersegment sales	- 9,136	- 14,251	- 4,399
Total	119,450	55,890	5,985	0	181,325
Segment result (EBIT)
From continuing business segments	15,940	8,464	588
From discontinued business
segments	0	0	0
Total	15,940	8,464	588	- 1,165	23,827

in € K	Europe	Americas	Asia	Consolidation	Group
H1 2008
Segment revenue
Total external sales	530,205	142,169	19,828
Less intrasegment sales	- 133,692	- 20,213	- 869
	396,513	121,956	18,959
Intersegment sales	- 27,219	- 32,210	- 5,566
Total	369,294	89,746	13,393	0	472,433
Segment result (EBIT)
From continuing business segments	33,599	13,210	1,088
From discontinued business
segments	0	0	0
Total	33,599	13,210	1,088	- 4,875	43,022
H1 2007
Segment revenue
Total external sales	324,520	159,341	20,516
Less intrasegment sales	- 83,653	- 19,380	- 935
	240,867	139,961	19,581
Intersegment sales	- 17,654	- 32,213	- 8,840
Total	223,213	107,748	10,741	0	341,702
Segment result (EBIT)
From continuing business segments	27,422	15,230	1,118
From discontinued business
segments	0	0	0
Total	27,422	15,230	1,118	- 1,872	41,898

Secondary segmentation (business segments)

in € K	Apr. 1 – Jun. 30, 2008	Apr. 1 – Jun. 30, 2007	Jan. 1 – Jun. 30, 2008	Jan. 1 – Jun. 30, 2007
Segment revenue from external customers
Light Equipment	95,538	118,520	186,808	224,856
Compact Equipment	102,428	25,236	201,252	46,669
Services	47,596	39,111	86,772	72,871
	245,562	182,867	474,832	344,396
Less cash discounts	- 1,374	- 1,542	- 2,399	- 2,694
Total	244,188	181,325	472,433	341,702

Selected explanatory notes to the interim fi nancial statements for the fi rst half year 2008

Accounting principles

The Wacker Construction Equipment AG ("Wacker Neuson Group") consolidated interim fi nancial statements to June 30, 2008 have been prepared in accordance with International Financial Reporting Standards (IFRS) and their interpretation as valid on the reporting date. The statements adhere to Inter national 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, 2007. The comments there also apply to the quarter and half-year statements for fi scal 2008, unless explicitly stated otherwise.

The general accounting principles and valuation methods used for the fi scal 2007 consolidated statements have also been applied to these interim fi nancial statements. Several equipment producing companies within the Wacker Neuson Group have started establishing internal reporting structures that distinguish between research and development costs by documenting and reporting both of these cost factors separately. This will give the company the information baseline it needs to comply with the terms of IAS 38.57 governing capitalization of development costs. Development investments made in 2008 and capitalized under IAS 38.57 are written down over a period of 6 years. Development costs capitalized in previous years are written down over a period of 4 to 5 years. The straight-line method is used for amortization. The development costs realized for the period under review as recognized under the requirements governing capitalization amounted to around EUR 1.9 million.

Legal changes to company structure

With effect as of March 1, 2008, the affi liate Wacker Neuson GmbH in Vienna purchased the entire business operations of Stambach Baumaschinen GesmbH, also a consolidated company of the Wacker Neuson Group.

The asset deal between Wacker Neuson GmbH as the purchaser and Stambach Baumaschinen GesmbH as the seller does not classify as a business combination under IFRS 3, as both companies are under the common control of Wacker Construction Equipment AG.

On June 30, 2008, Stambach Baumaschinen GesmbH was incorporated into NEUSON Baumaschinen GmbH.

The company established an affi liate in India in the fi rst quarter of 2008. During the course of 2008, it is not expected that this affi liate will have any signifi cant impact on the assets, liabilities, fi nancial position or earnings of the Group.

At the end of second quarter, the legal form and name of NEUSON KRAMER Baumaschinen AG were changed to Wacker Neuson Beteiligungs GmbH. This took place as part of the merger with the Neuson Kramer subgroup.

Furthermore, a second-tier affi liate was established in Serbia (Wacker Neuson Lapovo d.o.o) during the second quarter. This involved an outlay of EUR 1.5 million. During the course of 2008, it is not expected that this affi liate will have any signifi cant impact on the assets, liabilities, fi nancial position or earnings of the Group. The company is set to supply the Group with steel construction components.

During the AGM on June 3, 2008 in Munich, shareholders approv ed the proposal to change the company's legal form to an SE (Societas Europaea) and its name to Wacker Neuson SE. The majority of affi liates have already renamed in anticipation of this change.

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 2007 and 2006 was as follows:

in %	2007	2006	Average
Q1	24	24	24
Q2	28	27	27
Q3	25	25	25
Q4	23	24	24

Here it must be noted that revenue from the Neuson Kramer sub group, which merged with Wacker on October 1, 2007, is not included in the 2007 fi gures. The annual analysis of the distribution of consolidated sales clearly shows that seasonal fl uctuations in the Group (without the Neuson Kramer subgroup) 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.

	2008	2007
Q2
Quarterly earnings attributable to shareholders in € K	16,457	14,222
Weighted average number of issued shares in thousands	70,140	47,250
Less treasury shares in thousands		4,350
Weighted average number of ordinary shares in circulation
during the period in thousands	70,140	42,900
Earnings per share in EUR	0.24	0.33
H1
Quarterly earnings attributable to shareholders in € K	28,785	24,806
Weighted average number of issued shares in thousands	70,140	45,375
Less treasury shares in thousands		4,350
Weighted average number of ordinary shares in circulation
during the period in thousands	70,140	41,025
Earnings per share in EUR	0.41	0.60

Important events

On June 3, 2008, the AGM in Munich approved the proposal to pay out a dividend of EUR 0.27 along with a bonus of EUR 0.23, which brings the total to EUR 0.50 per eligible share. The total dividend payment of EUR K 35,070 was made on June 4, 2008. Executive and Supervisory Board members' actions were approved for fi scal 2007.

Events since reporting date

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

Responsibility statement by the management (statement in accordance with section 37y of the German Securities Trading Act (WpHG) in conjunction with section 37w, paragraph 2, number 3 of the WpHG; section 289, paragraph 1, clause 5 of the German Commercial Code (HGB))

To the best of our knowledge, and in accordance with the appli c able reporting principles for interim fi nancial reporting, the interim consolidated fi nancial statements give a true and fair view of the assets, liabilities, fi nancial position and profi t or loss of the Group, and the interim management review of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the fi nancial year.

Munich, August 14, 2008

The Executive Board

Dr. Ing. Georg Sick (CEO and President)

Martin Lehner Richard Mayer (Deputy CEO)

Günther Binder Werner Schwind

Review Report by the Auditors

To Wacker Construction Equipment AG, Munich, Germany

We have reviewed the condensed consolidated interim fi nancial statements of the Wacker Construction Equipment AG, comprising the condensed income statement, the condensed balance sheet, the condensed cash fl ow statement, the condensed statement of changes in equity as well as selected explanatory notes, together with the interim group management report of the Wacker Construction Equipment for the period from January 1 to June 30, 2008 that are components of the half year fi nancial report pursuant to § 37w WpHG (German Securities Trading Act). The preparation of the condensed consolidated interim fi nancial statements in accordance with those IFRS applicable to interim fi nancial reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management report, is the responsibility of the Company´s management. Our responsibility is to issue a report on the condensed consolidated interim fi nancial statements and on the interim group management report based on our review.

We performed our review of the condensed consolidated interim fi nancial statements and the interim group management report in accordance with German generally accepted standards for the review of fi nancial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with a certain level of assurance, that the condensed consolidated interim fi nancial statements have not been prepared, in material aspects, in accordance with the IFRS applicable to interim fi nancial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material aspects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a fi nancial statement audit. Since, in accordance with our engagement, we have not performed a fi nancial statement audit , we cannot issue an auditor´s report.

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 re spects, in accordance with the IFRS applicable to interim fi nan cial reporting as adopted by the EU, or that the interim group manage ment report has not been prepared, in all material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.

Munich, August 14, 2008

Rölfs WP Partner AG Wirtschaftsprüfungsgesellschaft

Reinke Jagosch Wirtschaftsprüfer (Public Auditor)

Wirtschaftsprüfer (Public Auditor)

Income Statements

Wacker Construction Equipment AG and NEUSON KRAMER Baumaschinen AG

for the period from January 1 through June 30

Jan. 1 – Jun. 30, 2008	Jan. 1 – Jun. 30, 2007
315,392	341,702
- 190,999	- 201,054
124,393	140,648
- 69,747	- 68,780
- 7,966	- 9,657
- 22,565	- 21,746
1,689	2,582
- 868	- 1,149
24,936	41,898
1,274	- 1,130
26,210	40,768
- 8,988	- 15,962
17,222	24,806
0	0
0	0
17,222	24,806
24,936	41,898
15,227	13,362
40,163	55,260

Excluding Neuson Kramer subgroup

in € K	Jan. 1 – Jun. 30, 2008	Jan. 1 – July 31, 20072
Neuson Kramer
Revenue3	208,400	182,562
Cost of sales	- 156,146	- 128,626
Gross profi t	52,254	53,936
Sales and service expenses	- 7,582	- 9,800
Research and development expenses	- 3,135	- 2,344
General administrative expenses	- 7,672	- 8,215
Other income	2,612	2,132
Other expenses	- 1,318	- 877
Profi t before interest and tax (EBIT)	35,159	34,832
Financial result	- 1,707	85
Profi t before tax (EBT)	33,452	34,917
Taxes on income	- 9,015	- 11,273
Profi t before disc. operations, minority interests	24,437	23,644
Result from discontinued operations	0	- 3
Minority interests	- 533	- 520
Profi t for the period	23,904	23,121
Profi t before interest and tax (EBIT)	35,159	34,832
Depreciation and amortization	2,252	1,945
EBITDA	37,411	36,777

February 1 through July 31, 2007. Converted to the calendar year on October 1, 2007.

Revenue in cost of sales format.

Wacker Neuson – Overview of purchase price allocation

in € K	Jan. 1– Jun. 30, 2008	Purchase price allocation	Jan. 1– Jun. 30, 2008
	without PPA1		with PPA
Revenue	472,433		472,433
Cost of sales	- 308,836	- 2,285	- 311,121
Gross profi t	163,597	- 2,285	161,312
Sales and service expenses	- 77,329		- 77,329
Research and development expenses	- 11,101	- 1,580	- 12,681
General administrative expenses	- 30,227	- 168	- 30,395
Other income	4,301		4,301
Other expenses	- 2,186		- 2,186
Profi t before interest and tax (EBIT)	47,055	- 4,033	43,022
Financial result	- 433	- 156	- 589
Profi t before tax (EBT)	46,622	- 4,189	42,433
Taxes on income	- 14,421	1,232	- 13,189
Profi t before disc. operations, minority interests	32,201	- 2,957	29,244
Result from discontinued operations	0		0
Minority interests	- 533	74	- 459
Profi t for the period	31,668	- 2,883	28,785
Profi t before interest and tax (EBIT)	47,055	- 4,033	43,022
Depreciation and amortization	17,115	3,063	20,178
EBITDA	64,170	- 970	63,200

PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated to individually acquired assets, liabilities and contingent liabilities, which are measured at fair value.

Financial Calendar and IR/Press Contact

Contact

Wacker Construction Equipment AG

Ressort Investor Relations Preußenstraße 41 80809 Munich Germany

Phone +49 - (0)89 - 354 02 - 173 Fax +49 - (0)89 - 354 02 - 203

ir@eu.wackergroup.com www.wackerneuson.com

Publishing Details

Issued by: Wacker Construction Equipment AG, Ressort Investor Relations

Concept & design: Kirchhoff Consult AG, Munich, Germany

Content: Wacker Construction Equipment AG

Print: p d peschke druck, Munich, Germany

Financial Calendar 2008

August 14, 2008	Publication of half-year report for fi scal 2008
	September 24/25, 2008 Capital Markets Day, Pfullendorf, Germany
November 11, 2008	Publication of nine-month report for 2008
November 12, 2008	German Equity Forum, Deutsche Börse AG, Frankfurt, Germany

Disclaimer

This half-year report 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 anyway 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.

All rights reserved. Valid August 2008. Wacker Construction Equipment AG accepts no liability for the accuracy and completeness of information provided in this brochure. Reprint only with the written approval of Wacker Construction Equipment AG in Munich, Germany.

Wacker Construction Equipment AG

Preußenstraße 41 80809 Munich Germany Tel. +49 - (0)89 - 354 02 - 0 Fax +49 - (0)89 - 354 02 - 390 www.wackerneuson.com