DGAP-News: Wacker Neuson SE / Key word(s): Final Results
Wacker Neuson SE: Wacker Neuson expects further growth and increased
returns
24.03.2011 / 10:00
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Wacker Neuson expects further growth and increased returns
Development in current year confirms upwards trend - Restructuring plans -
Outlook to 2013
(Munich, March 24, 2011) The Wacker Neuson Group exceeded its own forecasts
for revenue and earnings in 2010. The company is leveraging its strong
financial position during the economic upturn. Wacker Neuson expects strong
growth to continue through 2013.
In 2010, the economic upturn in Europe and the Americas revived key target
markets for Wacker Neuson: construction and - as the year progressed - also
agriculture. The Group benefited from an increase in demand for light and
compact equipment. Customer investments were fuelled by the need to replace
existing equipment and by government-funded infrastructure programs.
All business segments developed positively in 2010, resulting in Group
revenue of EUR 757.9 million for the period, a 27 percent rise on the
previous year's figure of EUR 597.0 million. Above-average growth in the
fourth quarter played a key role. At EUR 206.3 million, Q4 revenue was 34
percent up on the same quarter the previous year (EUR 154.2 million). This
was primarily driven by a significant leap in revenue from compact
equipment plus steady, strong demand for light equipment, which is an early
mover in economic cycles. Profit before interest, tax, depreciation and
amortization (EBITDA) amounted to EUR 77.8 million (previous year: EUR 27.2
million). The EBITDA margin was 10.3 percent, compared with 4.6 percent in
the previous year.
'Our strong performance in 2010 enabled us to exceed our own forecasts,'
explains Richard Mayer, Spokesperson for the Executive Board of Wacker
Neuson SE. 'It also shows that we took the right approach during the
economic crisis by setting our sights on the upswing and adjusting our
costs structures flexibly, but not at all costs. This enabled us to keep
employee expertise in the company - and we are now reaping the benefits of
this as business picks up. Looking forward, I also believe that this will
help us achieve above-average earnings growth.'
Group leverages strong financial position in the upswing
The Group's financial and assets position remains strong, with an equity
ratio (before minority interests) of 80.6 percent. The Group secured a high
level of liquidity during 2009, primarily by reducing working capital and
scaling back investments, and effectively utilized this in 2010. Despite
doubling investments to EUR 85.0 million, the company reported just a
slight net financial debt of EUR 13.7 million at the close of the year, and
is thus almost debt free. The Group has drawn on less than half of its
credit lines, which gives it plenty of further financial backing.
High payout ratio
'As we refrained from making a dividend payment last year, we want our
shareholders to share in the success of the Group this year with a payout
of EUR 0.17 per share. This corresponds to around 50 percent of net profit
for the Group. The Executive Board and Supervisory Board will propose the
payout at the AGM,' reports Günther Binder, Member of the Executive Board
of Wacker Neuson SE responsible for finance. Earnings per share amounted to
EUR 0.34 in 2010 (previous year: EUR -1.57).
Alignment of legal and operative structures at Wacker Neuson SE
The Group's parent company, Wacker Neuson SE, is to be converted to a
holding company. The operating segments Production Germany, Sales Germany
and Sales Europe will be separated from Wacker Neuson SE in their entirety
and established as separate legal entities. Central Group and corporate
functions will remain at Wacker Neuson SE. A divestiture and incorporation
contract will be proposed for approval at the AGM on May 26, 2011. Under
the proposed holding structure, Wacker Neuson SE shall hold all shares and
100 percent of the capital in the three new German affiliates. Since the
merger with Neuson Kramer in 2007, key lines of business within the company
are already operating as holding companies. The change in structure follows
through on the merger by aligning both subgroups within the Wacker Neuson
Group. The wholly owned American subsidiary, Wacker Neuson Corporation,
also transitioned from a parent company to a holding structure on January
1, 2011 and now manages production, logistics and sales within the
framework of separate legal entities. These measures shall not result in
any changes for shareholders in our company as Wacker Neuson SE will remain
the sole owner of the new companies. In financial terms, the new legal
structure does not affect the Group's net assets and earnings situation.
Impact of the earthquake in Japan
The devastating repercussions from the earthquake in Japan could affect
some of our suppliers in this region in the short term. This, in turn,
could lead to production delays at Wacker Neuson. 'We will continue to
closely monitor the situation among our suppliers in the region. However,
we do know that our suppliers' facilities in Japan are not directly
affected,' states Günther Binder.
Optimistic outlook for the current fiscal year
The Executive Board remains committed to its forecast for 2011. 'Our solid
order backlog for compact equipment, which at December 31, 2010 was over
350 percent up on the same date last year, plus dynamic trends in the first
weeks of the current year, give us every reason to expect positive business
growth in 2011. We anticipate that revenue will rise by at least 15 percent
and our EBITDA margin will reach at least 12 percent. Our forecast,
however, is qualified by the assumption that the situation in Japan does
not deteriorate,' outlines Richard Mayer.
Investments in profitable growth through 2013
Over the current fiscal year, the Group intends to invest around EUR 100.0
million in total in property, plant and equipment, including a new
production facility in Hörsching (near Linz), Austria. A continued rise in
demand for compact equipment would most likely push the existing plant in
Linz - the Austrian competence center for excavators, dumpers and skid
steer loaders - to its capacity limits.
The Group's strong financial position will enable it to implement its
strategies and reach its goals of further growth - at an international
level in particular. The Group plans to return to its 2007 pre-crisis
revenue level by the year 2013. Following the drop in customer investments
over the last three years, the Group expects the backlog to fuel
expenditure in 2011 and 2012 - for rental fleets also. The global trend to
expand and improve infrastructure (such as road, rail and telecommunication
networks) and building modernization projects offer great opportunities for
the company's business model. In addition, the compact equipment portfolio,
especially compact excavators and wheel loaders, is still at the beginning
of its market lifecycle worldwide - so the Group foresees the greatest
growth potential in this segment.
The company will also consider additional acquisitions and partnerships in
the medium term to strengthen its product offering, provide added value to
its customers or expand its international footprint.
Key figures: Wacker Neuson Group*
in EUR million Q42010/Q42009**/FY2010/FY2009**
Revenue 206.3/154.2/757.9/597.0
EBITDA 22.2/10.4/77.8/27.2
EBITDA margin as a % 10.7/6.8/10.3/4.6
EBIT 11.4/-99.7/36.7/-113.1
Consolidated profit/loss for the period 8.6/-99.7/23.9/-110.1
* All figures include effects from purchase price allocation; differences
may occur as a result of figures being rounded up or down.
** Earnings for 2009: One-off write-downs in the amount of EUR 100.3
million, primarily on goodwill accruing to the Neuson Kramer subgroup
(excluding EBITDA), as well as restructuring costs (EUR 9.6 million in
2009) and deferred tax revenue (EUR 2.7 million: only for Group earnings).
Your contact partner at Wacker Neuson:
Wacker Neuson SE
Katrin Neuffer
Preussenstr. 41
80809 Munich, Germany
Tel. +49 - (0)89 - 354 02 - 173
katrin.neuffer@wackerneuson.com
Internet: www.wackerneuson.com
About Wacker Neuson
Wacker Neuson SE is a global manufacturer of light and compact equipment.
With over 30 affiliates and more than 180 locations across the globe, the
company offers an exceptionally broad portfolio of products and services.
Manufacturing activities are distributed across three German, one Austrian,
two American and one Philippine production sites. Almost all products
manufactured by the company are branded Wacker Neuson. The only exceptions
to this in Europe are Kramer Allrad products and Weidemann-branded
agricultural machinery. With over 300 product categories and complementary
rental, spare parts and repair services, Wacker Neuson is the partner of
choice among professional users in construction, gardening, landscaping and
agriculture, as well as among municipal bodies and companies in the
industrial and recycling sectors.
End of Corporate News
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Language: English
Company: Wacker Neuson SE
PreuÃenstr. 41
80809 München
Deutschland
Phone: +49 - (0)89 - 354 02 - 0
Fax: +49 - (0)89 - 354 02 - 390
E-mail: info@wackerneuson.com
Internet: www.wackerneuson.com
ISIN: DE000WACK012
WKN: WACK01
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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116749 24.03.2011
DGAP-News: Wacker Neuson SE: Wacker Neuson expects further growth and increased returns
| Source: EQS Group AG