The Kramer Allrad 2506 compact telehandler
The Wacker Neuson Group, which makes Kramer telehandlers, has reported double-digit growth in revenue and profit for the third quarter of 2014.
Wacker Neuson attributes the rise to an upturn in business in North America and the group's broad sales platform in Europe.
Group revenue for the third quarter amounted to EUR316.2 million (USD395.5 million), a 14% jump from the previous year's EUR276.3 million (USD345.5 million).
"The fact that we have been able to deliver such strong results in this uncertain and volatile climate is down to our unwavering commitment to our growth strategy," says CEO of Wacker Neuson Cem Peksaglam. "Here, we are focusing not only on diversifying our target markets but also on extending our international reach."
New product launches in 2014 also contributed to the group's sustained market success. These include new zero-emissions battery-powered rammers and a zero-emissions compact electric wheel loader.
"Our strict cost control measures and ongoing efforts to improve and streamline processes across all lines of business also bolstered our earnings performance," Peksaglam adds.
Profit before interest and tax rose 51% from the previous year's EUR26.5 million (USD33.1 million) to EUR40.1 million (USD50.1 million).
All regions contributed to revenue growth in the third quarter of 2014. Europe reported an increase of 14%, while the Americas and Asia-Pacific both saw revenue rise by 16%.
Revenue for the first nine months of 2014 increased 9% to EUR 936.2 million (USD1.171 billion), corresponding to a rise of 11% when adjusted for currency fluctuations. "Once again, our compact equipment segment was a key revenue driver this year ... Our strategy to expand our international footprint and diversify our target markets also boosted our performance here," Peksaglam says.
In line with its internationalisation strategy, the group plans to relocate the production of skid steer loaders from its facility in the Austrian town of Hörsching to its site in Menomonee Falls, near Milwaukee, Wisconsin.
This will be the first time that the group has manufactured compact equipment outside of Europe. The relocation will not result in any layoffs in Hörsching, as the group will be redeploying personnel and free capacity at the site for other products.