Wacker Neuson has reported record revenue levels

Compact equipment manufacturer Wacker Neuson has reported record revenue levels for the second quarter of 2017.

Group revenue rose 11% from the same period last year, reaching EUR425.2 million (USD498.9 million).

Even more impressive was the 41% rise in earnings before interest and tax (EBIT) in the quarter.

In its largest market, Europe, which currently accounts for around 73% of revenue, the group reported a 6% rise in revenue compared with the previous year. Revenue gains were higher in the Americas, with North and South America for the second quarter rising 32% for the quarter and 23% for the first six months of the year.

"We are particularly pleased to see strong growth in compact equipment, especially with our skid steer loaders, wheel loaders and telescopic handlers," says Cem Peksaglam, CEO of Wacker Neuson.

"Our light equipment business is developing particularly strongly at the moment. Worksite technology is leading the way here, with products such as generators and light towers performing especially well in North America. We are also seeing strong results from compaction technology, in particular with products connected to our alliance with Hamm AG," he adds.

Meanwhile, the group reported a drop in revenue in the Asia Pacific, primarily linked to a one-off effect in the first quarter of 2016, involving dealers in China stocking up on compact equipment, which increased the baseline for comparisons. Business in Australia and New Zealand showed double-digit revenue growth for the first half of 2017.

In other developments, the company is making good progress on its new factory near Shanghai.

"Reflecting our strategy to extend our international reach, we recently entered into two long-term distribution partnerships. In South Korea, we have teamed up with Everdigm, a manufacturer of construction equipment, mining equipment and special vehicles; while in Japan, we have started a distribution partnership with Iseki, one of the largest agricultural equipment manufacturers for tractors, agricultural machines and gardening equipment," Peksaglam explains.

The strategic alliance between the global market leader for agricultural machines, John Deere, and group member Kramer, which was announced in July, puts the company on course to further expand its compact agricultural equipment footprint in Europe.

"We are positive about the second half of 2017 due to the healthy order situation and positive mood across all key markets. In Europe, we expect the construction industry to continue on its positive growth path and demand in the agricultural sector to rise. In (the) Americas, we expect the strong performance of the first six months to continue, fuelled in particular by business with compact equipment.

"The second half of the year got off to a great start," he adds.