Wacker Neuson revenues rise
The Wacker Neuson Group started the year strongly, with revenue for the first quarter of 2018 increasing by more than 9% to EUR371 million (USD442 million). All regions and business segments reported a rise in revenue.
Wacker Neuson's growth was primarily driven by continued rising demand in the European and North American construction markets as well as strong performance from the Weidemann and Kramer brands in the agricultural sector. When adjusted for currency effects, revenue increased at an even faster pace - up 14% relative to last year.
Europe remains the largest market for the group, accounting for 72% of its business. Revenue for this region rose 8% to EUR268 million in the first quarter of 2018 (USD319 million). Revenue for the Americas grew at an even faster pace than in Europe, increasing 13% to EUR92 million (USD109 million). Adjusted for currency effects, this corresponds to a rise of 29%.
"In the US, we benefited from a number of trends, including increased investments from rental chains stocking up on worksite technology such as generators and heaters. Our performance was also bolstered by strong sales of our US-produced skid steer loaders," explains Martin Lehner, CEO of Wacker Neuson SE.
Revenue for the Asia-Pacific region rose 16%, fuelled particularly by China, where the group started series production of mini excavators in January 2018.
Increased raw material prices, higher personnel and transport costs as well as new environmental and health and safety regulations for equipment have driven up costs for the group, prompting increasing sales prices across all product segments and brands as of July 1, 2018. However, Wacker Neuson says thanks to its ongoing measures to streamline internal processes, it is only passing on part of the increase in costs to its customers.
Lehner notes that the company presented a host of new products and innovations to customers and business partners at INTERMAT in Paris in April to a positive response.
Looking to the rest of the year, the company has confirmed its guidance for fiscal 2018 and expects revenue to rise by 8 to 11%, and the target corridor for the EBIT margin remains at 9 to 10%. The situation with suppliers and future exchange rate developments, however, remains uncertain, especially with regard to the US dollar, it adds