Strong half-year for Wacker Neuson
By Mike Hayes09 August 2022
Wacker Neuson has published its financial results for the first half of 2022, reporting double-digit growth across all reporting regions.
The Munich-headquartered light and compact equipment manufacturer reported revenue up by 15.5%, compared with the same period in 2021. This equates to a record half-year revenue figure for Wacker Neuson of just over €1.07 billion.
Revenue in Europe, Middle East and Africa rose 12.1%, compared with the same period in the previous year, reaching €826.3 million, with solid growth seen in Wacker Neuson’s home market of Germany, but also double-digit growth in the markets of the UK and France.
Demand from the Americas rose strongly, with revenue climbing 28.0% to €202.8 million in the first half-year. The company said the revenue growth was accentuated by a weak euro relative to the US dollar.
Wacker Neuson said it benefited from strong demand for its wheeled loaders and dumpers from the construction industry. It also highlighted growth in its rental and services business, as well as its components division.
The company did reveal a -2.6% drop on its year-on-year EBIT (earnings before income tax) margin, due to ongoing supply chain issues and continued high costs for materials, energy and shipping. However, it stressed that its second quarter earnings improved by 1.3% on the first quarter.
In conclusion, the revenue guidance from the company remains unchanged at €1.9 billion to €2.1 billion, with an EBIT margin of between 9% and 10%.
Dr Karl Tragl, chairman of the Executive Board and CEO of the Wacker Neuson Group, said, “Order intake was already at a very high level in the first quarter and this positive momentum accelerated even further in the second quarter. We thus have an order backlog extending well beyond the current fiscal year.
“However, there are still no signs of improvement in the supply situation, and material, energy and shipping costs remain high – all of which has a negative impact on our profitability. On the other hand, we do expect our price increases to have a positive impact on gross margin from the third quarter onwards.”