THE Wacker Neuson Group, a global manufacturer of light and compact equipment, continues to succeed in an unchanged challenging environment and posted significant growth in the third quarter. Group revenue for the first nine months of 2022 once again marked a record level at €1,641 million, up 18% year-on-year. Adjusted for foreign exchange, the increase amounted to 15%.
The earnings trend continued to be impacted by general supply chain problems and high material, energy and logistics costs, while a changed customer mix in the third quarter also had a dampening effect. At €144.6 million, earnings before interest and taxes (EBIT) were almost on a par with the previous year. At 9%, the EBIT margin declined accordingly, but again improved by 0.6 percentage points compared to the first half of the year.
“Even though the challenges are steadily increasing over the course of this year, we have so far succeeded in continuing to grow strongly quarter by quarter and catch up in terms of profitability. Demand from our customers remains high, meaning that our order backlog continues to grow and now extends well into the second half of 2023,” explains CEO of the Wacker Neuson Group, Dr Karl Tragl. “From a business perspective, this exceptionally high level of visibility gives us additional planning certainty. ”
Continued double-digit growth in all reporting regions
In the Europe (EMEA) segment, revenue increased by 13% in the first nine. Once again, in addition to the home market of Germany, it was primarily the major European construction machinery markets of the UK and France that characterised growth with double-digit growth rates. In addition, the latest acquisition, the Enar Group, successfully contributed a full quarter to growth in the region for the first time. Furthermore, growth was driven by high demand for compact equipment, particularly wheel loaders and dumpers for the construction industry and telescopic handlers for agriculture.
Revenue of the agricultural machinery brands, Kramer and Weidmann, also increased significantly, rising by 26%.
In the Americas region, the positive trend from the first half of the year continued. Revenue developed extremely dynamically in the first nine months, increasing by 37%. Within the region, there was a disproportionately good performance in the USA and Canada, characterised by high demand and strong order intake across all sales channels. There was also strong growth in construction site equipment and compact equipment, particularly skid steer loaders and excavators.
In the Asia-Pacific region, the increase in revenue was even higher at 38%. Among the individual markets, Australia again showed strong growth. The Chinese market remained weak. However, production in China continues to represent an attractive export hub for the African and South American markets in particular, due to the prevailing cost structures.
Outlook for the full year confirmed
Against the background of the business performance to date, the current business development in the fourth quarter and the high order backlog, the Executive Board confirms its forecast for the full year 2022. The Executive Board assesses the macroeconomic environment as unchanged difficult, particularly with regard to the supply chains. At the same time, the continuing high demand for the company’s products and the resulting above-average order situation provide a relatively good starting position from the company’s point of view, enabling it to position itself adequately even in the event of a deterioration in the economic environment.
