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Wacker Neuson SE — Management Reports 2012
Nov 20, 2012
480_10-q_2012-11-20_b42a5c67-9c77-4c1e-b408-ffd9911c47aa.pdf
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A Group Management Report
Wacker Neuson SE | Nine-month report 2012
Figures at a Glance
July 1 through September 30 and January 1 through September 30
| Jul. 1–Sep. 30, | Jul. 1–Sep. 30, | Jan. 1–Sep. 30, | Jan. 1–Sep. 30, | |||
|---|---|---|---|---|---|---|
| in € million | 2012 | 2011 | Changes | 2012 | 2011 | Changes |
| Key figures | ||||||
| Revenue | 254.5 | 248.9 | 2.2% | 812.6 | 727.6 | 11.7% |
| by region | ||||||
| Europe | 179.1 | 181.1 | -1.1% | 577.6 | 532.5 | 8.5% |
| Americas | 64.2 | 58.3 | 10.1% | 205.4 | 168.5 | 21.9% |
| Asia-Pacific | 11.1 | 9.5 | 16.8% | 29.6 | 26.6 | 11.3% |
| by business segment1 | ||||||
| Light Equipment | 96.7 | 94.0 | 2.9% | 306.2 | 277.7 | 10.3% |
| Compact Equipment | 95.1 | 100.4 | -5.3% | 344.8 | 302.8 | 13.9% |
| Services | 66.2 | 58.4 | 13.4% | 173.0 | 156.9 | 10.3% |
| EBITDA | 34.2 | 49.6 | -31.0% | 110.3 | 121.2 | -9.0% |
| Depreciation and amortization | 14.0 | 12.0 | 16.7% | 41.0 | 35.0 | 17.1% |
| EBIT | 20.1 | 37.6 | -46.5% | 69.3 | 86.2 | -19.6% |
| EBT | 18.2 | 36.7 | -50.4% | 63.9 | 83.5 | -23.5% |
| Profit for the period | 13.5 | 27.4 | -50.7% | 44.5 | 59.0 | -24.6% |
| Number of employees | 4,0232 | 3,406 | 18.1% | 4,0232 | 3,406 | 18.1%2 |
| Share | ||||||
| Earnings per share in € | 0.19 | 0.39 | -51.3% | 0.63 | 0.84 | -25.0% |
| Key profit figures | ||||||
| Gross profit as a % | 32.3 | 34.3 | -2.0 PP | 30.9 | 33.2 | -2.3 PP |
| EBITDA margin as a % | 13.4 | 19.9 | -6.5 PP | 13.6 | 16.7 | -3.1 PP |
| EBIT margin as a % | 7.9 | 15.1 | -7.2 PP | 8.5 | 11.9 | -3.4 PP |
| Key figures from the balance sheet | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Changes Dec. 31, 2011 |
|---|---|---|---|---|
| Non-current assets | 782.2 | 742.1 | 706.8 | 5.4% |
| Current assets | 550.3 | 471.2 | 453.4 | 16.8% |
| Equity before minority interests | 916.9 | 905.0 | 870.8 | 1.3% |
| Net financial debt | 194.9 | 90.4 | 70.6 | 115.6% |
| Liabilities | 412.3 | 305.4 | 286.7 | 35.0% |
| Equity ratio before minority interests as a % | 68.8 | 74.6 | 75.1 | -5.8 PP |
| Working capital | 440.4 | 370.5 | 350.1 | 18.9% |
| Jul. 1–Sep. 30, | Jul. 1–Sep. 30, | Jan. 1–Sep. 30, | Jan. 1–Sep. 30, | |||
|---|---|---|---|---|---|---|
| Cash flow | 2012 | 2011 | Changes | 2012 | 2011 | Changes |
| Cash flow from operating activities |
21.5 | 14.4 | 49.3% | 12.7 | 24.7 | -48.6% |
| Cash flow from investing activities |
-20.6 | -16.2 | 27.2% | -79.7 | -68.7 | 16.0% |
| Capital expenditure (property, plant and equipment and intangible assets) |
-20.9 | -22.0 | -5.0% | -83.6 | -75.5 | 10.7% |
| Cash flow from financing activities |
5.3 | 0.2 | >100% | 69.1 | 24.8 | 178.6% |
| Free cash flow | 1.0 | -1.8 | -155.6% | -66.9 | -44.0 | 52.0% |
1 Consolidated sales before discounts.
2 Includes consolidation of Serbian production company as of January 1, 2012
(Wacker Neuson Kragujevac d.o.o.; September 30, 2012: 240 employees).
All consolidated figures prepared according to IFRS.
9M 2012 Highlights
Overview
Wacker Neuson performed well overall in the first nine months of 2012. During the third quarter, there was a slight drop in demand for our products in Europe.
9M 2012 compared with 9M 2011
Revenue increased 12 percent to EUR 813 million.
- At product level, both light equipment (+10 percent) and compact equipment (+14 percent) contributed to this positive trend. At regional level, the Americas region grew 22 percent and Europe 8 percent.
- Profit figures weakened as the year progressed: the EBIT margin was 8.5 percent and the EBITDA margin 13.6 percent – both below the previous year's figures. This was caused by a drop in demand in Europe and one-off costs necessary to relocation and start-up phase for increased production capacity.
Forecast
Wacker Neuson remains cautiously optimistic about 2012 overall. The company continues to expect revenue to increase to around EUR 1.1 billion, with an EBITDA margin of between 13 and 15 percent. In fiscal 2011, the Group reported revenue of EUR 991.6 million and an EBITDA margin of 16.4 percent. Wacker Neuson remains committed to its strategy and thus intends to increase its presence in core markets and continued as planned with its expansion measures.
- Letter from the CEO | 02
- Group Management Report | 04
- Interim Financial Statements Consolidated Income Statement Consolidated Total Profit/Loss Consolidated Balance Sheet Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement Consolidated Segmentation | 20
- Selected Explanatory Notes to the Interim Financial Statements | 26
- Financial Calendar/IR Contact | 29
Cem Peksaglam CEO
Dear Ladies and Gentlemen,
We are delighted to present our nine-month report outlining the development of Group business thus far in 2012. I would like to start off by saying that it has been a highly volatile and uncertain period. During the first quarter of 2012, we were able to build on our success in 2011 – which was a record year for the company – reporting outstanding revenue and earnings for the first three months of the year. During the second quarter, however, our business was hit by the financial and banking crisis, accompanied by falling and increasingly unpredictable demand for our products. This situation continues to prevail and, from our present standpoint, will continue into the coming months.
In May of this year, we started operations at our new production and development center for Wacker Neuson dumpers, skid steer loaders, and excavators. This facility is one of our largest investment projects and key to securing our future growth. Although the actual move to the new site took just under two weeks, the relocation and start-up phase did delay product deliveries. We have had to adjust to new, optimized workflows as a result of the enormous increase in capacity at the site. The resulting delays had an impact on revenue and earnings. Consequently, second-quarter revenue and earnings could not keep pace with the strong start to the year – a development that we described in detail in our half-year report. Despite this one-off effect, H1 revenue developed positively, increasing by 16.6 percent.
Our results for the third quarter, however, increasingly reflected loss of pace. At EUR 254.5 million, Q3 revenue was just 2.2 percent up on the prior-year period. Even allowing for exceptionally strong performance in the previous year and the impact of one-off effects on earnings, recent market developments clearly indicate that the downturn in Europe is unfortunately becoming more pronounced. Our figures also reflect this, with Q3 revenue for this region experiencing an – albeit small – drop of 1 percent. In contrast, the Americas continued to develop extremely well with revenue increasing 10 percent relative to the prior-year period. In the Asia-Pacific region, revenue was up by an impressive 16 percent, although it still remains at a relatively low level. Delays in ramping up production – still evident at the start of the third quarter – coupled with the market situation in Europe caused earnings for the previous three months to fall. The EBITDA margin, for example, amounted to 13.4 percent. This represents a rise on the same figure for Q2 (13.1 percent) but is significantly lower than the prior-year period.
At EUR 812.6 million, however, revenue for the first nine months of 2012 increased by 12 percent, and the EBITDA margin for the same period was posted at 13.6 percent. Our revenue thus remains at a record high, enabling us to confirm our forecast for the current year. We still expect revenue for 2012 to amount to around EUR 1.1 billion and the EBITDA margin to level out between 13 and 15 percent.
The fourth quarter got off to a promising start overall, albeit with marked regional variations. While business in the Americas continues to grow, order intake for construction and agricultural equipment in Europe is on the decline. Uncertainty and reluctance to invest among customers continue to dominate markets here and we do not expect this to turn around until the middle of next year. In the current climate, however, it is extremely difficult to make accurate forecasts. At September 30, our order intake was still above the previous year's high level – proof positive of the success of our strategy to increase market penetration in Europe and North America as well as our measures to extend our international footprint. From our current position, we expect revenue and earnings to rise in the coming year.
Our strategy to unite our two product segments (light and compact equipment) under single management will enable us to maximize synergies, supporting our growth plans in particular. This has led to changes in the structure of the Executive Board: Mr. Richard Mayer stepped down from his position as member of the Executive Board responsible for light equipment on September 30. This area has been taken on by Mr. Martin Lehner, who is also responsible for compact equipment at Executive Board level. On behalf of the entire Executive Board, I would like to wish Mr. Mayer all the best for the future and thank him for his many years of service to the company. This move has not resulted in any changes to the company's reporting structure. We will continue to report on the three segments of light equipment, compact equipment and services.
In April next year, Munich will again be host to bauma, the world's largest compact equipment trade fair. We will of course be attending the event and doing what our customers across the globe expect from us – showcasing light and compact equipment innovations under the Wacker Neuson and Kramer Allrad brands. We will also be presenting our wide range of services – an area that we believe is becoming increasingly important. Before bauma Munich, however, we will premiering our new portfolio of light equipment for the Chinese market this month at bauma China in Shanghai. Initial feedback from our customers in Asia gives us confidence that we have also chosen the right strategy here.
Once again, our employees and leaders have shown outstanding commitment this year and played a key role in ensuring that Wacker Neuson can meet its ambitious goals for the current fiscal year. On behalf of myself and my colleagues on the Executive Board of Wacker Neuson SE, I would like to thank everyone for their exceptional performance and wish us all every success for the remaining weeks of the year and beyond.
Best regards,
Cem Peksaglam CEO of Wacker Neuson SE
Group Management Report
Economic and business trends
Euro debt crisis impacts the real economy
The ongoing debt crisis in Europe further dampened growth in almost all EU countries during the third quarter of 2012. In Southern European countries in particular, partly restrictive financial policies had a negative impact on investments and thus on economic growth of Europe as a whole.
Germany managed to buck this trend in the first three quarters of the year. According to Ifo's business climate index, however, German industry lowered its expectations in September, primarily due to falling export forecasts and increasing reluctance to invest on the domestic market.
Politicians have been trying to contain the European debt crisis for the last two and a half years. Despite numerous guarantees, loans and promises, uncertainty remained high in the third quarter of 2012. Greece, Portugal, Ireland and Cyprus have all received aid from the euro bailout fund. Spain may be the next country to apply for financial support.
In contrast, the US economy picked up in the third quarter, fueled by rising consumer spending, which accounts for 70 percent of economic activity in the US. Companies, however, were more cautious due to uncertain growth forecasts, causing them to cut back on investments for the first time since the start of 2011. Exports fell somewhat as a result of the debt crisis in Europe and the slowdown in growth in China.
Emerging economies continue to grow, albeit at a slower pace. Unfavorable general economic developments in Europe led to a drop in exports. This had a particularly strong impact on China, the world's second-largest economy, which saw its GDP growth fall again in the third quarter. This region currently only accounts for a small portion of Wacker Neuson's revenue and so developments here are considered to have a minimal impact on the company.
Trends in construction and agricultural markets
Solid growth across the construction industry in the US
The impact of the unfavorable economic climate in Europe on demand for construction varied considerably from one European country to another. Mediterranean countries struggling with debt have been hit particularly hard. In contrast, Switzerland, Norway and Germany experienced positive momentum in residential construction – clearly the strongest segment within the construction business overall. This kept construction companies busy during the third quarter. Residential construction developed particularly well in Germany, where low mortgage interest rates plus a rise in real income in private households and moderate unemployment levels fueled a further rise in demand for housing. Underground construction is primarily dependent on public construction projects. Despite a recent rise in tax income, many municipal bodies are burdened by unusually high levels of debt. This means that consolidation is often a top priority here even though many construction projects urgently need to be carried out. Investments in commercial overground construction – above all in factory, workshop and office buildings – remained more or less at the same high level as in previous quarters.
The US construction industry developed positively. Investments in residential construction provided strong economic impetus, increasing by 14.4 percent on the previous year due to record low interest rates.
Construction activity slowed somewhat in the Asia-Pacific region, with demand in China down on the previous year. The mining sector, in particular, continued to slow considerably. Unlike other providers, however, Wacker Neuson is not dependent on this sector.
Investment in the agricultural sector dampened
In the first quarter of the year, investments in the agricultural sector were significantly higher than in the previous year as farm owners upgraded their fleets with intelligent agricultural technologies prior to the start of the growing season. Since then, however, there has been an increasing tendency among customers to delay major investments. According to Ifo's business climate index, subdued consumer spending in Europe and poor harvests dampened the mood in the German food and drinks industry in Q3 2012.
Business trends and the latest developments from the first nine months of the year
Central Europe and the US are core markets for Wacker Neuson. Particularly in the first half of the year, a strong willingness to invest was evident among customers in construction, agriculture, landscaping, gardening, logistics and various other industry sectors. Revenue for the first nine months of 2012 in Europe rose by 8 percent. At 22 percent, the Americas region grew at a significantly higher rate. These positive business trends confirm that Wacker Neuson is on the right path with its strategy to increase its presence in core markets and to continue with its planned expansion.
Nine-month revenue at all-time high
In the first nine months of 2012, Group revenue increased 12 percent to reach EUR 812.6 million (9M 2011: EUR 727.6 million) – a record figure for the reporting period. New machine sales in the light equipment segment were high, fueled by strong business in the Americas. Compact equipment sales were also higher than the previous year, although figures were impacted slightly from the middle of the fiscal year onwards by the downturn in the European construction and agricultural sectors.
In light of the prevailing economic climate, the third quarter fell below expectations, with revenue totaling EUR 254.5 million (Q3 2011: EUR 248.9 million). This corresponds to a rise of 2 percent on the previous year's quarter, which was itself a relatively strong period.
The downturn in demand in Europe that has been in evidence since the middle of the year together with our targeted market penetration activities on our more competitive core markets impacted our profit margins for the first nine months of the year. The start of production at our new facility in Hörsching (Linz, Austria) also dampened profit in the previous two quarters. The EBITDA (profit before interest, tax, depreciation and amortization) margin1 for the first nine months of 2012 dropped to 13.6 percent (9M 2011: 16.7 percent) with the EBIT (profit before interest and tax) margin2 falling to 8.5 percent (9M 2011: 11.9 percent).
Gearing3 amounted to around 21 percent at September 30, 2012. With an equity ratio before minority interests of 69 percent at the closing date, the Group's asset position remains strong. For further details, refer to the "Profit, financials and assets" section.
Developments at the Hörsching production site
To meet rising demand for compact equipment in the long term, Wacker Neuson expanded production capacity at its site in the Austrian town of Hörsching. The plant covers an area of 48,300 square meters and was built in just 11 months on a 17-hectare plot of land next to Linz airport. It features a cutting-edge manufacturing hall with six assembly lines plus a state-of-the-art test zone, a spray facility with powder coating and a sand-blasting unit as well as an office building with modern workstations, a cafeteria and an apprentice and service workshop for training purposes.
Production of compact equipment got underway here on May 10, 2012. The Group invested a total of around EUR 65 million in this new development and production site. The move from Linz-Leonding to the new site in Hörsching has tripled the Group's manufacturing capacity for compact and mobile excavators, skid steer loaders and dumpers. This equipment is targeted at the construction industry, at gardening and landscaping firms, recycling and logistics companies as well as at the municipal sector.
1 EBITDA margin = EBITDA/revenue.
2 EBIT margin = EBIT/revenue. 3 Gearing = net financial debt / equity before minority interests.
The end of September saw the official opening of Wacker Neuson's new compact equipment plant in Hörsching, Austria. Over 7,000 visitors came to see the Group's largest production facility.
A ribbon cutting ceremony marked the official opening. Below: (from left to right) Gert Reichetseder (Managing Director Linz), Hans Neunteufel (Chairman of the Supervisory Board), Dr. Josef Pühringer (State Governor), Cem Peksaglam (CEO), Martin Lehner (Member of the Executive Board responsible for technology) and Johannes Mahringer (Managing Director Linz).
The relocation and start-up phase for production at the new facility delayed product deliveries. This in turn depressed revenue for compact equipment for several months. Profit for the period was also affected by relocation and start-up costs as well as by rent and operating costs for the previous site (rental contract runs until the end of 2012). Today, logistics at the site have been further optimized and the production facility has reached its planned level of capacity utilization.
Official opening of the new production facility
Over 7,000 visitors came to the opening of Wacker Neuson's new compact equipment plant in the Upper Austrian town of Hörsching. Guests included national and international sales partners together with their customers and members of the trade press. Employees and their families as well as visitors from the entire region also enjoyed the entertaining program of events at Wacker Neuson's opening ceremony. On September 27 and 28, Wacker Neuson invited investors and analysts to Hörsching for the Group's annual Capital Market Day. Guests were given tours of the production facilities and an opportunity to see the company's powerful machines in action in the facility's demo area. Highlights included demos of the machines' unique selling points including the Vertical Digging System (VDS) and the Easy Lock quick-hitch system for attachments.
Wacker Neuson impresses customers at GaLaBau
From September 12 through 15, Wacker Neuson showcased a broad portfolio of light and compact equipment for the gardening and landscaping sectors at this year's GaLaBau trade fair in Nuremberg. Covering everything from mini excavators to wheel loaders, from dumpers to breakers, and from compaction machines to heaters, generators and light towers, the company clearly demonstrated how it can contribute to its customers' success as a professional partner for all gardening and landscaping workflows. The company's stand generated a lot of interest among visitors.
Changes to the Executive Board
Mr. Richard Mayer stepped down from his position as member of the Executive Board of Wacker Neuson SE responsible for light equipment on September 30, 2012. Mr. Martin Lehner has taken on responsibility for light equipment at Executive Board level in addition to his role as head of compact equipment. By uniting its two product segments (light and compact equipment) under single management, Wacker Neuson intends to maximize synergies, in particular with regard to international expansion. This will enable the Group to further build on its market success.
Wacker Neuson showcased a portfolio of products tailored to the gardening and landscaping sector at the GaLaBau trade fair in Nuremberg from September 12 through 15.
Capital market communication and share trends
During the period under review, the Executive Board continued to regularly keep stakeholders up to date on current developments within the company and on the company strategy. They achieved this through various channels including national and international roadshows and conferences.
Although the European debt crisis led to volatile stock market trading on financial markets, the Wacker Neuson share reported double-digit gains since the beginning of the year. Starting the year at EUR 9.40, the share peaked at EUR 13.45 on March 2, 2012. At the end of the reporting period (September 30, 2012), it closed at EUR 10.99. This corresponds to a rise of around 17 percent since the start of the year and market capitalization of EUR 770.8 million (70,140,000 shares). The Wacker Neuson share thus outperformed the SDAX (+12 percent) over the same period. However, it has recently fallen somewhat relative to its peer group, DAX and SDAX. WACKER NEUSON SDAX DAX Peergroup 31.12.11 30.03.12 26.06.12 28.09.12 26.10.12 WACKER NEUSON SDAX DAX Peergroup 31.12.11 30.03.12 26.06.12 28.09.12 26.10.12
Share price trends July through October 2012
Peergroup: Atlas Copco, Bauer, Caterpillar, Cramo, Deutz, Haulotte, Manitou, Palfinger, Ramirent, Terex
Profit, financials and assets
Revenue and earnings1
Revenue significantly higher than previous year
Group revenue for the first nine months of the year rose 11.7 percent to EUR 812.6 million (9M 2011: EUR 727.6 million). Adjusted to discount currency fluctuations, this corresponds to an increase of 9.0 percent. During the first six months of the year, the revenue growth rate was 17 percent (H1 2012: EUR 558.1 million; H1 2011: EUR 478.7 million). This slowdown in growth as the year progressed was expected, however. Signs of the European economy losing speed were evident in the third quarter. At EUR 254.5 million, revenue for the quarter was just 2.2 percent higher than the prior-year figure (Q3 2011: EUR 248.9 million). The third quarter of the previous year was an extremely strong period for the Group, however, and so the baseline for growth in Q3 2012 was already high.
Revenue
Q3/9M 2012 and 2011
in € million
| Q3/2012 | 254.5 |
|---|---|
| Q3/2011 | 248.9 |
| 9M/2012 | 812.6 |
| 9M/2011 | 727.6 |
Higher production volumes in 2012 caused manufacturing costs to rise 15.5 percent in the first nine months of the year to EUR 561.6 million (9M 2011: EUR 486.1 million). In the previous two quarters, the process and logistics expenses for the production of compact equipment also rose (for further information on this one-off effect, refer to "Business trends and the latest developments from the first nine months of the year").
The revenue structure for the first nine months of the year did not change significantly compared with the previous year. At 42 percent, compact equipment accounted for the largest share of revenue (9M 2011: 41 percent), followed by light equipment at 37 percent (9M 2011: 38 percent). The services segment accounted for the remaining 21 percent (9M 2011: 21 percent).
Gross profit rose by 4.0 percent during the first nine months to EUR 251.0 million (9M 2011: EUR 241.4 million). The gross profit margin amounted to 30.9 percent (9M 2011: 33.2 percent). The gross margin for the third quarter came to 32.3 percent (Q3 2011: 34.3 percent).
No change to SG&A and R&D expenses as percentage of revenue
The increased volume of business caused Selling, General and Administrative (SG&A) expenses and Research and Development (R&D) expenses to rise during the first nine months of 2012. At 22.7 percent, however, their relative share of revenue remained on a par with the previous year (9M 2011: 22.5 percent).
Key figures
| in € million | Q3/2012 | Q3/2011 | Change as a % |
9M/2012 | 9M/2011 | Change as a % |
|---|---|---|---|---|---|---|
| Revenue | 254.5 | 248.9 | 2.2 | 812.6 | 727.6 | 11.7 |
| Gross profit margin as a % | 32.3 | 34.3 | -2.0 PP | 30.9 | 33.2 | -2.3 PP |
| EBITDA | 34.2 | 49.6 | -31.0 | 110.3 | 121.2 | -9.0 |
| EBITDA margin as a % | 13.4 | 19.9 | -6.5 PP | 13.6 | 16.7 | -3.1 PP |
| EBIT | 20.1 | 37.6 | -46.5 | 69.3 | 86.2 | -19.6 |
| EBIT margin as a % | 7.9 | 15.1 | -7.2 PP | 8.5 | 11.9 | -3.4 PP |
| EBT | 18.2 | 36.7 | -50.4 | 63.9 | 83.5 | -23.5 |
| Profit for the period | 13.5 | 27.4 | -50.7 | 44.5 | 59.0 | -24.6 |
1 Earnings include the effects of purchase price allocation (PPA) resulting from the merger
between the former Wacker Construction Equipment AG and Neuson Kramer
Baumaschinen AG in fall 2007. These will continue to have an – albeit diminishing – impact on balance sheet earnings into 2013. This impact on EBIT is detailed in the
following sections.
EBITDA
Q3/9M 2012 and 2011 in € million
| Q3/2012 | 34.2 |
|---|---|
| Q3/2011 | 49.6 |
| 9M/2012 | 110.3 |
| 9M/2011 | 121.2 |
Sales and service expenses rose 14.0 percent relative to the previous year (9M 2011: EUR 102.4 million) to reach EUR 116.8 million. At EUR 19.7 million, R&D costs increased 16.2 percent (9M 2011: EUR 17.0 million). General administrative costs rose to EUR 48.1 million in the first nine months of the year (9M 2011: EUR 44.5 million). Expressed as a percentage of revenue, administrative costs fell to 5.9 percent (9M 2011: 6.1 percent).
Key profit indicators
Profit before interest, tax, depreciation and amortization (EBITDA) fell 9.0 percent in the first nine months of the year to EUR 110.3 million (9M 2011: EUR 121.2 million). The EBITDA margin dropped to 13.6 percent (9M 2011: 16.7 percent). EBITDA for the third quarter of 2012 came to EUR 34.2 million, resulting in an EBITDA margin of 13.4 percent (Q3 2011: 19.9 percent). The EBITDA margin for the first half of 2012 was 13.6 percent.
Development 9M 2008 – 2012 of revenues and EBITDA margin
Revenue in € million
| 9M/2008 | 13.3 | 684.7 |
|---|---|---|
| 9M/2009 | 3.8 | 442.8 |
| 9M/2010 | 10.1 | 551.7 |
| 9M/2011 | 16.7 | 727.6 |
| 9M/2012 | 13.6 | 812.6 |
EBITDA margin as a %
Depreciation and amortization amounted to EUR 41.0 million for the first nine months of 2012 (9M 2011: EUR 35.0 million) and EUR 14.0 million for the third quarter of the year (Q3 2011: EUR 12.0 million).
Profit before interest and tax (EBIT) came to EUR 69.3 million for the first nine months of 2012 (9M 2011: EUR 86.2 million).1 The EBIT margin fell to 8.5 percent (9M 2011:
1 Purchase price allocation (PPA) reduced EBIT by EUR 3.1 million (9M 2011: EUR 2.6 million). In June 2012, a one-off impairment loss in the amount of EUR K 516 was reported on an investment property in Tredegar, UK, which is allocated to the Neuson Kramer subgroup.
11.9 percent). In the third quarter, it was 7.9 percent (Q3 2011: 15.1 percent), and was thus below the same figure for the first half of 2012 (H1 2012: 8.8 percent).
This decrease in the profit margin was caused by the oneoff costs linked to the start of production at the new facility in Hörsching and the slowdown in demand across Europe. Wacker Neuson operates in highly competitive markets. At the same time, the Group is also expanding into new territories. Although this strategy of consolidating and expanding the company's market position squeezes profit margins in the short term, it will ensure sustained growth in the long term.
Development Q3 2008 – 2012 of revenues and EBITDA margin
Revenue in € million
| Q3/2008 | 13.3 | 212.3 |
|---|---|---|
| Q3/2009 | 10.5 | 149.0 |
| Q3/2010 | 12.7 | 196.0 |
| Q3/2011 | 19.9 | 248.9 |
| Q3/2012 | 13.4 | 254.5 |
EBITDA margin as a %
Group profit is hardly affected by exchange rate fluctuations arising from the international flow of goods due to natural currency hedging, in particular with regard to the euro/US dollar. During the first nine months of 2012, the average euro/dollar exchange rate was EUR 1 to USD 1.29 (9M 2011: EUR 1 to USD 1.42). The Group uses derivative financial instruments to hedge other currencies.
The financial result for the period amounted to EUR -5.4 million (9M 2011: EUR -2.7 million) due to increased net debt. Profit before tax (EBT) for the first nine months of 2012 fell 23.5 percent to EUR 63.9 million (9M 2011: EUR 83.5 million). Tax expenses amounted to EUR 19.0 million (9M 2011: EUR 24.1 million). The tax rate was thus 29.8 percent (9M 2011: 28.9 percent).
At EUR 44.5 million, profit for the first nine months of 2012 was lower than the previous year's figure of EUR 59.0 million. Earnings per share amounted to EUR 0.63 (9M 2011: EUR 0.84) based on 70.14 million ordinary shares. At EUR 13.5 million, profit for the third quarter of 2012 dropped on the previous year's figure (Q3 2011: EUR 27.4 million). Earnings per share for the third quarter thus amounted to EUR 0.19 (Q3 2011: EUR 0.39).
Financials
Positive cash flow from operating activities
Cash flow from operating activities amounted to EUR 12.7 million at the end of September 2012 and was thus positive once again. As expected, however, it was lower than the previous year's figure (9M 2011: EUR 24.7 million) due to targeted efforts to increase inventory during the first half-year 2012. Discounting investments in working capital1 , cash flow from operating activities amounted to EUR 82.6 million (9M 2011: EUR 105.5 million). Working capital only increased slightly in the third quarter. The Group's cash flow from operating activities thus came to EUR 21.5 million in the third quarter alone, which represents a significant rise on the previous year (Q3 2011: EUR 14.4 million).
Cash flow from investment activities amounted to EUR -79.7 million for the first nine months of 2012 (9M 2011: EUR -68.7 million) and EUR -20.6 million in the third quarter (Q3 2011: EUR -16.2 million). As planned, the Group invested a total of EUR 83.6 million, EUR 77.1 million of which was channeled into property, plant and equipment. Key investments here included construction of the new facility in Hörsching, the expansion of the company's international sales network and investments in its rental fleet. As expected, investments exceeded write-downs, which was also the case in the prior-year period.
Free cash flow was thus negative, amounting to EUR -66.9 million by the end of September 2012 (9M 2011: EUR -44.0 million).
The Group did not acquire or sell any companies during the period under review. Changes to the consolidation structure are described in further detail in the Notes.
Cash flow from financing activities rose to EUR 69.1 million in the first nine months of 2012 (9M 2011: EUR 24.8 million). In the first quarter of the year, the Group placed a Schuldschein loan in the amount of EUR 120 million (refer to the Notes for further information). This was the main factor behind the increase in cash flow during this period. The second quarter dividend payout of EUR 37.05 million (dividend payout for Q2 2011: EUR 11.9 million) had the effect of reducing cash flow.
Comfortable liquidity situation
Liquidity increased from EUR 16.9 million at the start of the year to EUR 18.6 million at September 30, 2012. As planned, the Group is able to meet its liquidity needs for the current year through a combination of existing liquid assets and credit lines extended by credit institutes. At the closing date, the company had not drawn on around 40 percent of funds available through credit lines, providing it with sufficient financial headroom. The Group continues to demonstrate healthy levels of liquidity.
Financial position
| in € K | Q3/2012 | Q3/2011 | 9M/2012 | 9M/2011 |
|---|---|---|---|---|
| Cash flow from operating activities | 21,523 | 14,428 | 12,719 | 24,748 |
| Cash flow from investing activities | -20,562 | -16,237 | -79,665 | -68,708 |
| Free cash flow | 961 | -1,809 | -66,946 | -43,960 |
| Cash flow from financing activities | 5,281 | 170 | 69,050 | 24,806 |
| Change in cash and cash equivalents due to consolidation | -343 | -262 | -466 | -210 |
| Change in cash and cash equivalents | 5,899 | -1,901 | 1,718 | -19,364 |
| Cash and cash equivalents at beginning of period | 12,709 | 19,096 | 16,890 | 36,559 |
| Cash and cash equivalents at end of period | 18,608 | 17,195 | 18,608 | 17,195 |
1 Working capital = inventory + trade receivables - trade payables.
Assets
Assets in healthy position with continued high equity ratio
The equivalent figures from the previous closing date (September 30, 2011) are included to facilitate comparison of assets.
At the close of the first nine months of the year, the balance sheet again shows Group assets to be in a healthy position. At September 30, 2012, the balance sheet total increased to EUR 1,322.6 million (December 31, 2011: EUR 1,213.3 million; September 30, 2011: EUR 1,160.2 million).
Assets increased to EUR 746.2 million (December 31, 2011: EUR 712.5 million; September 30, 2011: EUR 677.3 million). Due to an increase in production levels, the value of finished products rose 26.6 percent to EUR 233.2 million (December 31, 2011: EUR 184.2 million) and by 41.1 percent relative to September 30, 2011 (EUR 165.3 million). Inventories climbed 27.7 percent to EUR 350.5 million (December 31, 2011: EUR 274.5 million) and 43.8 percent relative to the same closing date last year (September 30, 2011: EUR 243.7 million). In the third quarter, however, inventory was just 7.0 percent higher than the first half of 2012 (H1 2012: EUR 327.6 million). Trade receivables fell to EUR 153.5 million since the start of the year despite the increase in revenue (December
31, 2011: EUR 158.4 million; September 30, 2011: EUR 172.6 million). The increase in inventory drove up current assets to EUR 550.3 million (December 31, 2011: EUR 471.2 million; September 30, 2011: EUR 453.4 million).
Group equity before minority interests amounted to EUR 916.9 million at the end of September 2012 (December 31, 2011: EUR 905.0 million; September 30, 2011: EUR 870.8 million). At 68.8 percent, the equity ratio before minority interests remained high for the industry (December 31, 2011: 74.6 percent; September 30, 2011: 75.1 percent). The company's share capital remained unchanged at EUR 70.14 million.
Non-current liabilities rose to EUR 194.6 million (December 31, 2011: EUR 76.8 million; September 30, 2011: EUR 83.6 million) due to the Schuldschein loan placed by the company in the amount of EUR 120 million. The Schuldschein loan enabled the company to convert shortterm borrowings from banks based on open-ended credit lines to secure, long-term loans. Trade payables amounted to EUR 63.6 million (December 31, 2011: EUR 62.4 million; September 30, 2011: EUR 66.2 million). Total current liabilities amounted to EUR 217.7 following the repayment of short-term borrowings from banks in the first nine months of the year (December 31, 2011: EUR 228.7 million; September 30, 2011: EUR 203.1 million).
| in € K | Sep. 30, 2012 | Dec. 31, 2011 | Change as a % | Sep. 30, 2011 |
|---|---|---|---|---|
| Total non-current assets | 782,213 | 742,132 | 5.4 | 706,811 |
| Total current assets | 550,347 | 471,207 | 16.8 | 453,428 |
| Total assets | 1,332,560 | 1,213,339 | 9.8 | 1,160,239 |
| Equity before minority interests | 916,948 | 904,996 | 1.3 | 870,833 |
| Total non-current liabilities | 194,563 | 76,758 | 153.5 | 83,601 |
| Total current liabilities | 217,716 | 228,657 | -4.8 | 203,074 |
| Minority interests | 3,333 | 2,928 | 13.8 | 2,731 |
| Total liabilities | 1,332,560 | 1,213,339 | 9.8 | 1,160,239 |
Assets, equity and liabilities
Revenue growth and inventory build-up increase working capital
Demand for construction equipment from Wacker Neuson is growing worldwide. Efficient and, above all, forwardlooking component and product stocking strategies are key to ensuring rapid delivery capabilities. Wacker Neuson has therefore made concerted efforts to build up inventory since the start of the year. This pushed up working capital by 18.9 percent – or EUR 69.9 million – to EUR 440.4 million in the first nine months of the year (December 31, 2011: EUR 370.5 million), which corresponds to a rise of 25.8 percent relative to the previous year (September 30, 2011: EUR 350.1 million).
The working capital to revenue ratio based on Q3 2012 revenue annualized rose to 43.31 percent and was thus above the equivalent prior-year ratio (Q3 2011: 35.22 percent). In the second quarter, this figure amounted to 38.4 percent. The company intends to bring this ratio back under 40 percent in the medium term.
Solid financing structure
The successful placement of the Schuldschein loan in the first quarter again confirmed Wacker Neuson's status as a sound investment. The resulting funds in the amount of EUR 120 million enabled us to optimize our financing structure by replacing short-term liabilities with long-term, fixed-rate liabilities under the Schuldschein loan, thus providing a more secure platform for long-term financial planning. At EUR 194.9 million, net financial debt3 remained on a par with the figure reported at June 30, 2012 (June 30, 2012: EUR 195.1 million; December 31, 2011: EUR 90.4 million; September 30, 2011: EUR 70.6 million).
Gearing4 increased from around 10 percent at the start of the year to around 21 percent at the interim closing date. The Group's financing structure thus remains strong for the industry.
Net financial position
| in € K | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 |
|---|---|---|---|
| Long-term borrowings |
-134,981 | -15,261 | -25,083 |
| Short-term borrowings |
-78,060 | -91,654 | -57,233 |
| Current portion of long-term borrowings |
-445 | -421 | -5,519 |
| Cash and cash equivalents |
18,608 | 16,890 | 17,195 |
| Total | -194,878 | -90,446 | -70,640 |
Off-balance-sheet assets and financial instruments
In addition to the assets shown in the consolidated balance sheet, the Group also makes customary use of assets that cannot be recognized in the balance sheet. These generally refer to leased, let or rented assets (operating leases).
We utilize off-balance-sheet financing instruments to a limited extent in the form of return obligations and guarantees vis-à-vis our financing partners.
Judgments and estimates
During the period under review, no voting rights were exercised and no balance-sheet disclosures made which, if exercised or disclosed differently, would have had a material effect on the net assets, financials and earnings of the Group.
Note on calculation: 440.4/(254.5*4) = 43.3 percent.
- 3 Net financial debt = long- and short-term borrowings + current portion of long-term
- borrowings marketable securities cash and cash equivalents.
Note on calculation: 350.1/(248.9*4) = 35.2 percent.
Net financial debt / equity before minority interests.
Segment reporting
The Wacker Neuson Group supplies customers across the globe with its broad product and service portfolio.
Segment reporting provides an overview of business developments according to region (Europe, Americas and Asia-Pacific). The Group also breaks revenue down according to business segment (light equipment, compact equipment and services).
In the first nine months of 2012, all Group business segments developed positively. The Americas performed particularly well, with the Group reporting above-average growth rates in this region. We also benefited from sales synergies resulting from our cross-selling strategy between product groups.
Results for Europe, the Americas and Asia-Pacific
Revenue by region 9M 2012 as a % (previous year)
Revenue growth in core market Europe
Europe accounts for the lion's share of Wacker Neuson revenue. In light of stronger revenue growth in the Americas region, Europe's share fell to 71.1 percent (9M 2011: 73.2 percent). Revenue for the period rose 8.5 percent to EUR 577.6 million (9M 2011: EUR 532.5 million). Profit before interest and tax (EBIT) fell from EUR 58.6 million for the same period last year to EUR 44.9 million. Our relocation to the new production facility in Hörsching, Austria, was a oneoff item that had a significant impact on this figure.
Europe 9M 2012 and 2011 in € million
Revenue
| 9M/2012 | 577.6 | |
|---|---|---|
| 9M/2011 | 532.5 | |
| EBIT | ||
| 9M/2012 | 44.9 | |
| 9M/2011 | 58.6 | |
In addition to Germany and Switzerland, revenue developed strongly in the Netherlands, Norway and Turkey as well as in South Africa and Russia, both of which we include in the segment Europe although – geographically speaking – they are located outside the region. With the exception of Hungary, the pace of growth slowed somewhat in Eastern Europe following a two-year period of above-average investment in construction equipment among customers in countries such as Poland. The construction situation in Spain and Italy continued to deteriorate. Portugal, Greece and Ireland have very little impact on Group revenue.
Strong growth in the Americas
In the Americas, revenue for the first nine months of the year increased 21.9 percent relative to the previous year at EUR 205.4 million (9M 2011: EUR 168.5 million). Profit before interest and tax (EBIT) rose from EUR 23.1 million to EUR 26.4 million. Adjusted to reflect exchange rate fluctuations, this corresponds to a 12.7 percent rise in revenue. At 25.3 percent, the region's share of overall revenue increased slightly on the previous year (9M 2011: 23.2 percent).
| Americas | |
|---|---|
| 9M 2012 and 2011 | |
| in € million |
Revenue
| 205.4 9M/2012 9M/2011 168.5 |
|---|
| EBIT |
| 26.4 9M/2012 |
| 9M/2011 23.1 |
North America proved a particularly strong market, with revenue from utility products – above all air-conditioning technologies, generators and light towers – developing extremely well. The expansion of our sales network to incorporate the distribution of compact equipment in the Americas is also paying dividends. Demand for our products was strong in the US, Canada, Mexico and Chile.
Double-digit growth in Asia-Pacific region
At EUR 29.6 million, revenue for the Asia-Pacific region was 11.3 percent higher than the previous year (9M 2011: EUR 26.6 million). Profit before interest and tax (EBIT) came to EUR 2.1 million (9M: EUR 3.2 million). In light of stronger growth in the Americas, this region's share of total revenue dropped slightly to 3.6 percent (9M 2011: 3.7 percent).
Asia-Pacific 9M 2012 and 2011 in € million
Revenue
Asia-Pacific is an important growth market for Wacker Neuson. Demand for high-quality products is steadily rising here and our future go-to-market strategies are focused specifically on meeting this growth. Wacker Neuson intends to introduce selected light equipment products tailored to market dynamics in Asia and secure a strong competitive position by expanding its product portfolio. China and India, in particular, are key future markets for us. We established a sales affiliate in Hong Kong back in 1997 and have had a presence in Shanghai, Beijing and Shenzhen since 2006.
Emerging markets1 accounted for 14 percent of total revenue in the first nine months of the year (9M 2011: 12.8 percent).
From November 27 through 30, 2012, Wacker Neuson will be premiering light equipment tailored specifically to the Asian market at bauma Shanghai 2012. The company will also be showcasing compact equipment for the first time in China.
1 The term emerging markets refers to 35 countries according to the Dow Jones definition: Argentina, Bahrain, Brazil, Bulgaria, Chile, China, Colombia, the Czech Republic, Egypt, Estonia, Hungary, India, Indonesia, Jordan, Kuwait, Latvia, Lithuania, Malaysia, Mauritius, Mexico, Morocco, Oman, Pakistan, Peru, Philippines, Poland, Qatar, Romania, Russia, Slovakia, South Africa, Sri Lanka, Thailand, Turkey, United Arab Emirates.
Revenue by business segment
| in € K | Q3/2012 | Q3/2011 | Changes | 9M/2012 | 9M/2011 | Changes |
|---|---|---|---|---|---|---|
| Segment revenue from external customers | ||||||
| Light Equipment | 96,758 | 93,984 | +3.0% | 306,223 | 277,722 | +10.3% |
| Compact Equipment | 95,141 | 100,399 | -5.2% | 344,830 | 302,757 | +13.9% |
| Services | 66,209 | 58,361 | +13.4% | 172,984 | 156,851 | +10.3% |
| 258,108 | 252,744 | +2.1% | 824,037 | 737,330 | +11.8% | |
| Less cash discounts | -3,646 | -3,867 | -5.7% | -11,434 | -9,765 | +17.1% |
| Total | 254,462 | 248,876 | +2.2% | 812,603 | 727,565 | +11.7% |
Results for the light equipment, compact equipment and services segments
Revenue by business segment 9M 2012 as a % (previous year)
Demand for light equipment remains high
The light equipment business segment covers the Wacker Neuson Group's activities within the strategic business fields of concrete, compaction and job site preparation. Production is synchronized with demand and delivery times are short. The Group therefore does not report an order backlog for this segment.
Demand for light equipment continued to rise during the first nine months of 2012. Revenue before cash discounts from this segment increased 10.3 percent to EUR 306.2 million (9M 2011: EUR 277.7 million) by the end of September 2012. This segment's share of total revenue was 37.2 percent (9M 2011: 37.7 percent). At EUR 96.7 million, revenue for the third quarter was 2.9 percent higher than the prior-year period (Q3 2011: EUR 94.0 million).
In the first nine months of 2012, we launched new gasoline floor saws plus a full range of diamond blades for our entire portfolio of cut-off saws. We are currently establishing a range of light equipment products tailored to the Asian market. The products in this new offering are robust and built to Wacker Neuson's high quality standards.
Further revenue growth in compact equipment segment
The compact equipment business segment covers machines targeted at construction and agricultural industries, gardening, landscaping and industrial firms as well as recycling companies and municipal bodies. The portfolio includes excavators, wheel loaders, skid steer loaders, telescopic handlers as well as wheel and track dumpers weighing up to approximately 14 tons. The Group is targeting its compact equipment portfolio at more and more markets outside of Europe.
Revenue before cash discounts in the compact equipment segment rose from EUR 302.8 million in the previous year to EUR 344.8 million in the first nine months of 2012. This corresponds to an increase of 13.9 percent.
Demand for compact equipment was particularly strong in Germany, Switzerland, France, Poland and Australia as well as in North and South America. The compact equipment segment's share of total revenue increased slightly during the period under review to 41.8 percent (previous year: 41.1 percent).
This segment was the largest revenue driver in the first three months of the year (+51 percent) thanks to the expansion of our global sales network capabilities to include compact equipment.
The relocation to our new production facility had a negative impact on revenue for the second quarter, however. This situation was further compounded in the third quarter by dampened demand for construction and agricultural equipment. Segment revenue for the third quarter thus amounted to EUR 95.1 million, a 5.3 percent drop on 2011's strong third quarter (Q3 2011: EUR 100.4 million).
Our customers are placing orders at shorter notice than they did one year ago. It is therefore crucial that these shortterm orders are delivered as quickly as possible. This trend should be taken into consideration when comparing the current order situation and working capital with the situation last year.
The change in order patterns has meant that since the start of the year, accumulated order intake for compact equipment for the construction and agricultural sectors remained at the same high level as in the previous year. Order intake for September 2012 was 4 percent higher than the same figure for September 2011.
Demand for our innovative Weidemann-branded machines, which are primarily used for tasks on agricultural holdings, was fueled by a growing need to raise efficiency and productivity levels across the agricultural sector. Revenue generated by agricultural equipment (including sales to Claas) rose 12.6 percent to EUR 122.1 million in the first nine months of 2012 (9M 2011: EUR 108.4 million). At the close of the first nine months of 2012, compact equipment for the agricultural sector accounted for 14.8 percent of total Group revenue (9M 2011: 14.7 percent).
The Group continued to successfully deliver special financing options for customers in the compact equipment business.
Revenue growth in services segment
Wacker Neuson complements new equipment sales with an extensive range of services. The services segment covers the business fields of rental in Central Europe, the global repair and spare parts business and the reconditioned equipment business (for example, the European used equipment center in Gotha). Increased construction activity and our enhanced offering boosted segment revenue over the first nine months of 2012 by 10.3 percent to EUR 173.0 million (9M 2011: EUR 156.9 million). This segment's relative share of total revenue fell to 21.0 percent (9M 2011: 21.3 percent) due to stronger revenue growth in our product segments.
At EUR 66.2 million, revenue for the third quarter was 13.4 percent higher than the prior-year figure (Q3 2011: EUR 58.4 million).
Other factors that impacted on results
Increase in headcount
In light of strong business performance, we have increased headcount in specific areas since the start of the year, primarily in Germany, Austria and the US. Headcount was further bolstered by our Serbian production facility (Wacker Neuson Kragujevac d.o.o.), which was included in the consolidation structure for the first time in Q1 2012 (September 30, 2012: 240 employees). At the interim closing date, Group headcount came to 4,023 (December 31, 2011: 3,514; September 30, 2011: 3,406).1
Exchange rate fluctuations impact prices for raw materials
Expressed in dollars, the price for raw materials has fallen worldwide. In Europe, however, the euro has fallen against the dollar, causing prices to rise across the euro zone. The additional costs incurred since the start of the year were passed on to the market via an average 2- to 3-percent increase in the price of light equipment, some compact equipment models and spare parts.
1 Headcount figures do not reflect the actual number of people employed. They are calculated by converting the number of positions within the company into full-time jobs (not including temporary staff).
Research and development activities secure leading position
Wacker Neuson is a global technology leader in the manufacturing industry. Over half of revenue generated by Wacker Neuson stems from light and compact equipment launched within the past five years. This figure reflects our commitment to intensive research and development. R&D expenses currently account for 2.4 percent of revenue.
Much of our light and compact equipment is subject to particularly high stresses. R&D activities for these products thus focus on ensuring robust design, shorter downtimes and longer maintenance intervals. Our aim here is to keep operating costs as low as possible over the entire product lifecycle, for example, by ensuring a long service life and high reliability. Our products are also designed to deliver the highest productivity levels for our customers by providing optimum power in vibratory plates, for example, or through innovations such as our Vertical Digging System for excavators. Another aim of our development activities is to extend our pioneering position in product safety, operator safety and environmental protection. Noise- and vibrationreduction features such as hand-arm vibration systems in breakers as well as safety features such as infrared remote controls for trench rollers or our Smart Handling system for telescopic loaders are just some examples of operator safety innovations here. In addition, research, development and innovation are becoming increasingly important in the bid to achieve climate protection goals. Our activities here have a particularly high priority as we intend to maintain our high standards in the delivery of environmentally sound, safe products as we move forward. We will therefore continue to focus our R&D efforts on compliance with more stringent environmental regulations governing combustion engine emissions.
Changes to the opportunity and risk situation
In the first nine months of 2012, the Wacker Neuson Group continued to implement its risk management system as a key steering tool for business decisions and processes. The internal control and risk management system is described in detail in the consolidated financial statements for 2011.
The company has identified the following risks to the Wacker Neuson Group as of September 30, 2012 that deviate from the 2011 consolidated financial statements:
The slowdown in economic growth, in particular in the European construction industry, could depress light and compact equipment sales. The downturn can be most clearly seen in southern and eastern European countries, although it is also having an impact on German-speaking countries. A drop in demand could squeeze Wacker Neuson Group profit more strongly than before. Even if these effects do impact Group performance over a given period of time, we consider them to be of a short-term nature. To compensate for downturns in regional markets, Wacker Neuson has implemented strategic measures to successfully distribute products and services in other industries and growth markets. In addition, we continuously monitor key leading indicators that will enable us to implement appropriate countermeasures as appropriate.
From an organizational perspective, Wacker Neuson also implements flexible work and production models that enable us to absorb potential capacity fluctuations.
The remaining risks to the Group relevant to the period under review are listed in the 2011 Annual Report on pages 79 to 82.
Company management is not currently aware of any other significant risks to the Wacker Neuson Group. Similarly, the company has not identified any individual or collective risks to its continued existence as a going concern that might negatively affect individual companies within the Group or the Group as whole in the foreseeable future.
Business opportunities are described in detail in the 2011 Annual Report on pages 92 to 94 and in the Outlook section of this interim management report.
Supplementary report
There have been no further events since the reporting date that could have a significant impact on the future business development of the Wacker Neuson Group.
Outlook
Market forecasts revised following downturn in EU construction activity
The International Monetary Fund (IMF)1 expects the global economy to grow by 3.3 percent this year. For 2013, however, experts have identified significant risks the global economic environment. The organization now regards its forecast of 3.6 percent economic growth for the coming year as uncertain. Although it believes that world economic growth will continue to be driven primarily by emerging economies such as China and India, it has made some significant downward revisions to growth forecasts for these regions. Capacity bottlenecks, falling demand from major economies and domestic problems have all resulted in a slowdown in growth. The IMF thus believes that the risk of global recession in 2013 has risen significantly. It also reports that markets are dominated by a general sense of uncertainty about future developments.
The IMF expects GDP in the euro zone to decline by 0.4 percent in 2012. This is to be followed by a slight rise of 0.2 percent in 2013, down, however, on the IMF's previous forecast of 0.7 percent growth for the 17 euro countries.
The organization expects Germany's economy to grow by at least 0.9 percent this year (following 3.1 percent in 2011). Its forecast for 2013 was also revised downward to 0.9 percent from July's previous prognosis of 1.4 percent. This drop is primarily due to the downturn in other euro states and in emerging economies.
Forecasts for the US are more positive. According to American Federal Research, GDP for 2012 is set to grow by 1.7 to 2.0 percent. In 2013, growth is expected to top 2.5 or 3 percent.
Companies are facing ever greater challenges in a fastpaced global business world where economic cycles are becoming ever shorter and more difficult to predict.
Construction industry remains important part of global economy
Throughout the course of this year, the Chinese and Indian construction industries experienced a visible slowdown in growth. The two countries, however, remain the main growth drivers of the global construction equipment industry. The construction equipment market in Latin America is developing positively and growth in North America is due to remain at its current level. According to the US Department of Commerce in Washington, however, construction expenditure fell significantly in August 2012. A one-percent rise in private investments in residential construction was offset by downturns in other branches of the construction industry. Government spending was also down significantly on the previous month.
European construction industry continues downward trend
Many European countries need to carry out infrastructure projects to expand road, rail, transport and telecommunications networks. Public construction across Europe, however, is likely to remain at present levels due to austerity measures in many countries. Positive impulses are not expected in 2013. The early warning signs of a downturn in the construction industry in southern and central European countries proved to be true. Industry experts continue to rate the situation in Scandinavia, Germany, Benelux countries and France as positive. Uncertainties are increasingly being felt in Germany, France and Austria, however, resulting in a greater tendency among customers to delay investments.
In German-speaking countries, residential and commercial projects are expected to account for the majority of construction activity. These areas will continue to grow, in particular in Germany, thanks to the country's stable job market, low interest rates, the backlog of projects that has built up over recent years and renewed interest among private individuals in inflation-proof real estate investments. Nevertheless, Germany's construction machinery dealers have lowered their forecasts. According to VDMA2 , European construction equipment manufacturers have reported negative order intake and only slight revenue gains since the middle of the year. The business climate in the construction sector fell further in the last two quarters. VDMA has thus revised its original forecast for 2012, moving down from its original prognosis of 5 percent revenue growth in the construction equipment and building
1 International Monetary Fund, World Economic Outlook Update; July 16, 2012. 2 VDMA, Konjunkturelle Lage Bau- und Baustoffmaschinen (Economic situation in the construction equipment and building materials industry) ; June 20, 2012.
materials industry (following 15 percent in 2011) to a more realistic estimate of +/- 0 percent. In addition, the association expects a single- or double-digit downturn in 2013.
Strategies for further profitable growth
Wacker Neuson has set itself ambitious strategic goals for 2017. Our focus is firmly set on increasing market penetration, expanding our market share and strengthening our position as an innovation leader. By concentrating more on user processes and market requirements, we aim to align our sales and distribution activities even more closely with customer needs and priorities. On the compact equipment front, our strategy to expand our sales and distribution network in Europe and the Americas, flanked by strategic alliances with Caterpillar and Claas, will driver further growth potential in this segment even if the situation in Europe worsens in the short term. We also intend to increase our presence in regions in which we have identified concrete sales potential, for example, in emerging markets such as South America, Eastern Europe and Asia.
2012: moderate growth and lower profits
The uncertainties described above make it very difficult to predict overall market trends. The Group expects the light and compact equipment business in Europe to slow during the fourth quarter. Revenue from the services segment should continue to develop at a stable pace. Market uncertainties coupled with the euro crisis are curbing readiness to invest among European customers in the construction and agricultural industries, resulting, for example, in investments being put on hold.
Our strategy of diversifying our products and services across different market segments enables us to spread risk further and absorb economic fluctuations in individual industries and countries more effectively. Our strong financial position, expanding international footprint, flexible production processes and efficient organizational structures provide extra stability for the Wacker Neuson Group. We remain cautiously optimistic about 2012. Bolstered by our go-to-market strategies and diversification measures, we still expect revenue to be up on the previous year and aim to exceed to the billion-euro revenue mark. From our present position, we continue to expect revenue to total EUR 1.1 billion. The company also expects the EBITDA margin for the year to level out at 13–15 percent. In fiscal 2011,
Wacker Neuson reported revenue of EUR 991.6 million and an EBITDA margin of 16.4 percent. We expect the pace of growth in Europe to slow during the first half of 2013. Nevertheless, the Group aims to increase revenue and earnings for 2013 as a whole.
We intend to invest a total of around EUR 100 million during the course of the current fiscal year (around EUR 20 million of this is earmarked for the fourth quarter of the year). As things stand, we expect gearing to come to approximately 20 percent at the end of the year.
It remains unlikely that a quick fix will be found for Europe's debt crisis. It is much more likely that the road to recovery will comprise a series of small steps. As such, uncertainty is set to remain part of the landscape for some time to come. The Group will therefore remain as flexible as possible. We will continue to regularly assess cost optimizing measures, evaluate investments and keep a close eye on working capital.
With a view to enhancing our product portfolio and expanding our international footprint, we will also investigate further partnerships and acquisitions in the medium to long term. We aim to maintain our sound balance sheet structure with a high equity ratio.
Munich, November 9, 2012 Wacker Neuson SE
Executive Board
Cem Peksaglam (CEO)
Martin Lehner (Deputy CEO)
Günther C. Binder Werner Schwind
Consolidated Income Statement
July 1 through September 30 and January 1 through September 30
| Jul. 1–Sep. 30, | Jul. 1–Sep. 30, | Jan. 1–Sep. 30, | Jan. 1–Sep. 30, | |
|---|---|---|---|---|
| in € K | 2012 | 2011 | 2012 | 2011 |
| Revenue | 254,462 | 248,876 | 812,603 | 727,565 |
| Cost of sales | -172,285 | -163,594 | -561,574 | -486,132 |
| Gross profit | 82,177 | 85,282 | 251,029 | 241,433 |
| Sales and service expenses | -38,612 | -33,096 | -116,782 | -102,421 |
| Research and development expenses | -6,763 | -6,070 | -19,718 | -16,967 |
| General administrative expenses | -16,322 | -15,096 | -48,067 | -44,522 |
| Other income | 1,343 | 8,501 | 10,373 | 15,091 |
| Other expenses | -1,705 | -1,912 | -7,539 | -6,387 |
| Profit before interest and tax (EBIT) | 20,118 | 37,609 | 69,296 | 86,227 |
| Financial income | 375 | 504 | 992 | 1,615 |
| Financial expense | -2,258 | -1,377 | -6,404 | -4,358 |
| Profit before tax (EBT) | 18,235 | 36,736 | 63,884 | 83,484 |
| Taxes on income | -4,630 | -9,198 | -19,026 | -24,128 |
| Profit before minority interests | 13,605 | 27,538 | 44,858 | 59,356 |
| Minority interests | -65 | -116 | -405 | -398 |
| Profit for the period | 13,540 | 27,422 | 44,453 | 58,958 |
| Earnings per share in EUR | ||||
| (diluted and undiluted) | 0.19 | 0.39 | 0.63 | 0.84 |
Consolidated Total Profit/Loss
July 1 through September 30 and January 1 through September 30
| Jul. 1–Sep. 30, | Jul. 1–Sep. 30, | Jan. 1–Sep. 30, | Jan. 1–Sep. 30, | |
|---|---|---|---|---|
| in € K | 2012 | 2011 | 2012 | 2011 |
| Profit/loss before minority interests | 13,605 | 27,538 | 44,858 | 59,356 |
| Items not recognized in profit/ loss for the period | ||||
| Exchange differences | -3,204 | 3,810 | 2,885 | -7,063 |
| Securing cash flows: | ||||
| Profit/losses incurred in the current period | 0 | 51 | 16 | 368 |
| Tax effects from items in total profit/loss for the period | 0 | -13 | -5 | -132 |
| Items not recognized in profit/ loss | ||||
| for the period after tax | -3,204 | 3,848 | 2,896 | -6,827 |
| Total profit/loss for the period after tax | 10,401 | 31,386 | 47,754 | 52,529 |
| Of which are attributable to: | ||||
| Shareholders in the parent company | 10,336 | 31,270 | 47,349 | 52,131 |
| Minority interests | 65 | 116 | 405 | 398 |
| Total profit/loss for the period after tax | 10,401 | 31,386 | 47,754 | 52,529 |
Consolidated Balance Sheet
As at September 30
| in € K | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 |
|---|---|---|---|
| Assets | |||
| Property, plant and equipment | 385,772 | 348,930 | 328,053 |
| Investment property | 20,878 | 21,277 | 18,726 |
| Goodwill | 237,514 | 237,509 | 237,166 |
| Intangible assets | 102,011 | 102,793 | 89,438 |
| Other investments | 0 | 2,000 | 3,964 |
| Deferred tax assets | 26,076 | 20,706 | 20,638 |
| Other non-current assets | 9,962 | 8,917 | 8,826 |
| Total non-current assets | 782,213 | 742,132 | 706,811 |
| Inventories | 350,514 | 274,492 | 243,675 |
| Trade receivables | 153,513 | 158,358 | 172,593 |
| Current tax receivables | 5,952 | 2,488 | 1,408 |
| Other current assets | 15,479 | 18,281 | 17,859 |
| Cash and cash equivalents | 18,608 | 16,890 | 17,195 |
| Non-current assets held for sale | 6,281 | 698 | 698 |
| Total current assets | 550,347 | 471,207 | 453,428 |
| Total assets | 1,332,560 | 1,213,339 | 1,160,239 |
| Equity and liabilities | |||
| Subscribed capital | 70,140 | 70,140 | 70,140 |
| Other reserves | 607,866 | 604,970 | 596,849 |
| Net profit/loss | 238,942 | 229,886 | 203,844 |
| Equity before minority interests | 916,948 | 904,996 | 870,833 |
| Minority interests | 3,333 | 2,928 | 2,731 |
| Total equity | 920,281 | 907,924 | 873,564 |
| Long-term financial borrowings | 134,981 | 15,261 | 25,083 |
| Deferred tax liabilities | 31,333 | 30,713 | 26,644 |
| Long-term provisions | 28,249 | 30,784 | 31,874 |
| Total non-current liabilities | 194,563 | 76,758 | 83,601 |
| Trade payables | 63,590 | 62,362 | 66,209 |
| Short-term borrowings from banks | 78,060 | 91,654 | 57,233 |
| Current portion of long-term borrowings | 445 | 421 | 5,519 |
| Short-term provisions | 13,887 | 15,151 | 16,548 |
| Current tax payable | 3,083 | 1,967 | 5,367 |
| Other current liabilities | 58,651 | 57,102 | 52,198 |
| Total current liabilities | 217,716 | 228,657 | 203,074 |
| Total liabilities | 1,332,560 | 1,213,339 | 1,160,239 |
Consolidated Statement of Changes in Equity
As at September 30
| Equity | ||||||||
|---|---|---|---|---|---|---|---|---|
| Sub | Exchange | Other | before | |||||
| scribed | Capital | diffe | neutral | Net profit/ | minority | Minority | Total | |
| in € K | capital | reserves | rences | changes | loss | interests | interests | equity |
| Balance at December 31, 2010 | 70,140 | 618,661 | -14,718 | -267 | 156,802 | 830,618 | 2,341 | 832,959 |
| Total profit/loss for the period | 0 | 0 | -7,063 | 236 | 58,958 | 52,131 | 398 | 52,529 |
| Dividends | 0 | 0 | 0 | 0 | -11,924 | -11,924 | 0 | -11,924 |
| Reclassification of minority interest | 0 | 0 | 0 | 0 | 8 | 8 | -8 | 0 |
| Balance at September 30, 2011 | 70,140 | 618,661 | -21,781 | -31 | 203,844 | 870,833 | 2,731 | 873,564 |
| Balance at December 31, 2011 | 70,140 | 618,661 | -13,680 | -11 | 229,886 | 904,996 | 2,928 | 907,924 |
| Total profit/loss for the period | 0 | 0 | 2,885 | 11 | 44,453 | 47,349 | 405 | 47,754 |
| Change in consolidation | ||||||||
| structure | 0 | 0 | 0 | 0 | -327 | -327 | 0 | -327 |
| Dividends | 0 | 0 | 0 | 0 | -35,070 | -35,070 | 0 | -35,070 |
| Balance at September 30, 2012 | 70,140 | 618,661 | -10,795 | 0 | 238,942 | 916,948 | 3,333 | 920,281 |
Consolidated Cash Flow Statement
July 1 through September 30 and January 1 through September 30
| Jul. 1–Sep. 30, | Jul. 1–Sep. 30, | Jan. 1–Sep. 30, | Jan. 1–Sep. 30, | |
|---|---|---|---|---|
| in € K | 2012 | 2011 | 2012 | 2011 |
| EBT | 18,235 | 36,736 | 63,884 | 83,484 |
| Depreciation and amortization | 14,018 | 12,030 | 40,973 | 35,006 |
| Foreign exchange result | -1,768 | 1,703 | 2,144 | -4,715 |
| Gains/losses from sale of intangible assets and property, | ||||
| plant and equipment | 284 | -5,331 | -999 | -4,710 |
| Book value from the disposal of rental equipment | 1,529 | 1,177 | 3,890 | 2,837 |
| Gains/losses from derivates (cash flow hedging) | 0 | 37 | 11 | 236 |
| Financial result | 3,796 | 873 | 7,325 | 2,743 |
| Changes in inventories | -22,908 | -30,339 | -74,674 | -59,643 |
| Changes in trade receivables and other assets | 23,794 | 8,664 | 8,821 | -49,576 |
| Changes in provisions | -1,469 | 1,893 | -3,864 | 5,859 |
| Changes in trade payables and other liabilities | -2,500 | -5,786 | 3,338 | 32,897 |
| Interest paid | -1,286 | -1,283 | -4,069 | -3,530 |
| Income tax paid | -8,621 | -6,428 | -33,017 | -17,282 |
| Interest received | -1,581 | 482 | -1,044 | 1,142 |
| Cash flow from operating activities | 21,523 | 14,428 | 12,719 | 24,748 |
| Purchase of property, plant and equipment | -18,572 | -20,427 | -77,121 | -70,166 |
| Purchase of intangible assets | -2,350 | -1,573 | -6,514 | -5,287 |
| Proceeds from the sale of property, plant and equipment | ||||
| and intangible assets | 360 | 5,763 | 3,970 | 6,745 |
| Cash flow from investing activities | -20,562 | -16,237 | -79,665 | -68,708 |
| Dividends | 0 | 0 | -35,070 | -11,924 |
| Cash receipts from short-term/long-term borrowings | -24,467 | 175 | 119,729 | 43,865 |
| Repayments from short-term/long-term borrowings | 29,748 | -5 | -15,609 | -7,135 |
| Cash flow from financing activities | 5,281 | 170 | 69,050 | 24,806 |
| Increase/decrease in cash and cash equivalents | 6,242 | -1,639 | 2,104 | -19,154 |
| Change in cash and cash equivalents due to consolidation | 0 | 0 | 80 | 0 |
| Effect of exchange rates on cash and cash equivalents | -343 | -262 | -466 | -210 |
| Change in cash and cash equivalents | 5,899 | -1,901 | 1,718 | -19,364 |
| Cash and cash equivalents at beginning of period | 12,709 | 19,096 | 16,890 | 36,559 |
| Cash and cash equivalents at end of period | 18,608 | 17,195 | 18,608 | 17,195 |
Consolidated Segmentation
January 1 through September 30
Segmentation (geographical segments)
| in € K | Europe | Americas | Asia-Pacific | Consolidation | Group |
|---|---|---|---|---|---|
| 9M 2012 | |||||
| Segment revenue | |||||
| Total external sales | 961,532 | 285,285 | 42,625 | ||
| Less intrasegment sales | -325,408 | -46,063 | -2,331 | ||
| 636,124 | 239,222 | 40,294 | |||
| Intersegment sales | -58,524 | -33,816 | -10,697 | ||
| Total | 577,600 | 205,406 | 29,597 | 0 | 812,603 |
| EBIT | 44,888 | 26,361 | 2,147 | -4,100 | 69,296 |
| EBITDA | 80,879 | 30,793 | 2,697 | -4,100 | 110,269 |
| Net financial debt | 185,215 | 5,985 | 3,679 | 0 | 194,879 |
| Working capital | 284,806 | 147,646 | 25,135 | -17,149 | 440,438 |
| 9M 2011 | |||||
| Segment revenue | |||||
| Total external sales | 885,294 | 237,435 | 39,082 | ||
| Less intrasegment sales | -313,939 | -35,886 | -2,108 | ||
| 571,355 | 201,549 | 36,974 | |||
| Intersegment sales | -38,887 | -33,089 | -10,337 | ||
| Total | 532,468 | 168,460 | 26,637 | 0 | 727,565 |
| EBIT | 58,646 | 23,054 | 3,245 | 1,282 | 86,227 |
| EBITDA | 89,700 | 26,575 | 3,694 | 1,264 | 121,233 |
| Net financial debt | 64,745 | 5,936 | -41 | 0 | 70,640 |
| Working capital | 216,503 | 124,901 | 22,166 | -13,511 | 350,059 |
Revenue with non-Group companies generated by affiliates headquartered in Germany amounted to EUR K 329,186 (previous year: EUR K 305,623).
Segmentation (business segments)
| Jan. 1–Sep. 30, | Jan. 1–Sep. 30, | |
|---|---|---|
| in € K | 2012 | 2011 |
| Segment revenue from external customers | ||
| Light Equipment | 306,223 | 277,722 |
| Compact Equipment | 344,830 | 302,757 |
| Services | 172,984 | 156,851 |
| 824,037 | 737,330 | |
| Less cash discounts | -11,434 | -9,765 |
| Total | 812,603 | 727,565 |
Selected Explanatory Notes to the Interim Financial Statements for the Third Quarter 2012
Accounting rules
The Wacker Neuson SE consolidated interim financial statements to Sunday, September 30, 2012 were prepared in accordance with the International Financial Reporting Standards (IFRS) and their interpretation as valid on the reporting date and adopted in the EU. The statements adhere to International Accounting Standard (IAS) 34 for condensed statements.
All interim financial statements of the domestic and foreign companies included in the consolidated statements were prepared according to the standardized Wacker Neuson SE accounting principles and valuation methods.
As an information instrument, this interim report builds on the Consolidated Financial Statements. We therefore refer to the notes to the consolidated statements of December 31, 2011. The comments there also apply to the quarterly and half-year statements for fiscal 2012, unless explicitly stated otherwise.
The general accounting principles, valuation methods and estimates used for the fiscal 2011 consolidated statements have also been applied to these interim financial statements with the exceptions listed below.
The following reporting changes have been applied since Q2 2012:
Income statement
The term "diluted and undiluted" is now used in conjunction with earnings per share. There was no share dilution effect in this or previous reporting periods. The financial result is presented under "investment income" and "investment expense" and these items are not offset.
Balance sheet
The item "long-term borrowings" exclusively refers to financial liabilities. We have therefore changed this term to "long-term financial borrowings".
Cash flow statement
The information previously shown under "proceeds/ income from short-term / long-term borrowings" will now be reported separately under the items "cash receipts from short-term / long-term borrowings" and "repayments from short-term/long-term borrowings".
The equivalent figures from the previous year have been adjusted where necessary.
Legal changes to company structure
On January 1, 2012, the Serbian companies Wacker Neuson Kragujevac d.o.o. and Wacker Neuson Lapovo d.o.o. were included in the consolidated structure. The companies were not previously consolidated due to their minor impact on the Group's assets, financials and earnings.
Seasonal fluctuations
The annual analysis of the seasonal distribution of consolidated revenue over the year reinforces the assumption that seasonal fluctuations only have a minor impact on Group revenue.
The quarterly distribution of consolidated revenue from fiscal 2009 through 2011 was as follows:
| in % | 2011 | 2010 | 2009 |
|---|---|---|---|
| Q1 | 21 | 20 | 23 |
| Q2 | 27 | 27 | 26 |
| Q3 | 25 | 26 | 25 |
| Q4 | 27 | 27 | 26 |
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 period shown.
| 2012 | 2011 | |
|---|---|---|
| Q3 | ||
| Quarterly earnings attributable to shareholders in € K |
13,540 | 27,422 |
| Weighted average number of ordinary shares in circulation |
||
| during the period in thousands | 70,140 | 70,140 |
| Earnings per share in € (diluted and undiluted) |
0.19 | 0.39 |
| 9M | ||
| Earnings for the period attribut able to shareholders in € K |
44,453 | 58,958 |
| Weighted average number of ordinary shares in circulation |
||
| during the period in thousands | 70,140 | 70,140 |
| Earnings per share in € | ||
| (diluted and undiluted) | 0.63 | 0.84 |
Related party disclosures
According to IAS 24, related party disclosures in the case of Wacker Neuson refers to shareholders, entities over which shareholders have control or significant influence (sister companies), non-consolidated companies, members of the Executive Board, members of the Supervisory Board and the pension fund. We refer to the Annual Report 2011 for further information on the type and scope of related party disclosures. In view of the fact that Serbian companies Wacker Neuson Kragujevac d.o.o. and Wacker Neuson Lapovo d.o.o. were initially consolidated on January 1, 2012, Wacker Neuson no longer has relations with consolidated companies as per September 30, 2012.
Important events
At the AGM on May 22, 2012, shareholders of Wacker Neuson SE approved a dividend payout in the amount of EUR 0.50 per share. The actions of the Executive Board and Supervisory Board were officially approved for fiscal 2011.
Shareholders also approved the creation of a new authorized capital with the option of excluding subscription rights with a term until May 21, 2017. In addition, a proposal to acquire treasury shares with the option of redeeming and selling said shares subject to the exclusion of subscription rights until May 21, 2017 was approved.
The auditing company Ernst & Young, Stuttgart, was appointed for the first time as the official auditor for the fiscal year 2012.
A profit transfer agreement with Weidemann GmbH was also approved. Weidemann GmbH is a wholly owned company of Wacker Neuson SE.
In January 2012, the Group sold real estate in Tokyo, Japan, that had previously been disclosed under "non-current assets held for sale". Earnings from the sale in the amount of EUR 1.7 million are reported under "Other income".
In February 2012, Wacker Neuson SE placed a Schuldschein loan in the amount of EUR 120 million to secure liquidity and interest rates. The loan is based on terms of five and seven years. The transaction was subscribed at the lower end of the marketing range, with a coupon rate of 3.00 percent p.a. for the fixed five-year term and 3.66 percent p.a. for the seven-year term.
In May 2012, production started at the new Wacker Neuson facility in the Austrian town of Hörsching. The Group invested EUR 65 million in the new development and production site for compact equipment weighing up to 14 tons.
The fixtures on third-party property or in third-party buildings in Leonding, Austria, are no longer disclosed under property, plant and equipment. As of June 2012, they are posted under "non-current assets held for sale". This change was made following the relocation of production activities to the new facility in Hörsching. The lessor is set to assume the cost of fixtures when the property is handed over in December 2012.
In June 2012, a one-off impairment loss in the amount of EUR K 516 was reported on an investment property in Tredegar, UK. This non-cash, one-off write-down resulted from the purchase price allocation (PPA) originally set in connection with the 2007 merger.
With effect on September 30, 2012, Mr. Richard Mayer, responsible for light equipment, has stepped down from his position on the Executive Board of Wacker Neuson SE.
Mr. Martin Lehner, previously responsible for compact equipment, is now also responsible for light equipment. Events since the interim statements reporting date
Please refer to the supplementary report in the Group Management Report for other significant events since the reporting date for these quarterly financial statements.
Munich, November 9, 2012 Wacker Neuson SE
Executive Board
Cem Peksaglam (CEO)
Martin Lehner (Deputy CEO)
Günther C. Binder Werner Schwind
Financial Calendar
Financial Calendar 2012
November 13, 2012 Publication of nine-month report 2012
IR Contact
Contact
Wacker Neuson SE Investor Relations Preussenstrasse 41 80809 Munich Germany
Phone +49 - (0)89 - 354 02 - 173 Fax +49 - (0)89 - 354 02 - 298
[email protected] www.wackerneuson.com
Publishing Details
Issued by: Wacker Neuson SE, Department: Corporate Communication/ Investor Relations
Concept, design & realization: Kirchhoff Consult AG
Content: Wacker Neuson SE
Disclaimer
This report contains forward-looking statements which are based on the current estimates and assumptions by the corporate management of Wacker Neuson SE. 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 Neuson SE and its affiliated 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 the Company'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. The Company neither plans nor undertakes to update any forward-looking statements. This Management Report has not been audited.
All rights reserved. Valid November, 2012. Wacker Neuson SE accepts no liability for the accuracy and completeness of information provided in this brochure. Reprint only with the written approval of Wacker Neuson SE in Munich, Germany. The German version shall govern in all instances. In the event of discrepancies between the German and the English version, the German version shall prevail.
Wacker Neuson SE Preussenstrasse 41 80809 Munich Germany Phone +49 - (0)89 - 354 02 - 0 Fax +49 - (0)89 - 354 02 - 390 www.wackerneuson.com