Wacker Neuson has lowered expectations for the second half
Wacker Neuson Group almost equaled its record revenue from the prior-year quarter in the second quarter of 2016.
The international light and compact equipment manufacturer recorded revenue of EUR381.4 million (USD422.8 million) in the second quarter - close to last year's EUR382.1 million (USD423.5million) and 21% up on the first quarter.
"We have every reason to be satisfied with our performance in the second quarter of 2016 in light of the ongoing crises in the agricultural and energy sectors in our home markets of North America and Europe, as well as increasing uncertainty in the UK, South Africa, Poland, Russia and Turkey, coupled with the difficult situation in South America and Australia," says Cem Peksaglam, CEO of Wacker Neuson SE.
"The Group generates a large share of its revenue in Europe. Here, revenue for the second quarter rose 6% compared with the previous year. Revenue in the Americas and Asia Pacific regions fell by 14% and 31%, respectively, compared with the previous year.
Earnings before interest and tax (EBIT) remained almost unchanged from the previous year at EUR33.4 million (USD37 million).
Highlights of the reporting period include a new assembly plant in São Paulo, Brazil in April.The facility manufactures mobile generators for the regional market, currently on a small scale. In June, the group signed agreements for the construction of a new production facility in China. The site is located in the city of Pinghu, around 30 km from Shanghai. Compact excavators will be manufactured for the local market from 2018 onwards.
In its projections for 2016, the group cites recent political and economic events which have created "considerable uncertainty and volatility on global markets".
"These challenging market conditions are having a significant impact on our customers across the globe and require exceptional initiative and flexibility from us," adds Peksaglam. "High volatility and growing uncertainties in the ag and construction business, increased risks in some European markets and the persistent market weaknesses in North America and Australia forced us to lower our expectations for the second half."