Wacker Neuson, manufacturer of light and compact equipment, recorded a profit increase in the second quarter, with EBIT reaching €41.3 million (about U.S. $55.2 million), compared to €29.3 million in the second quarter of 2013, a 41-percent increase. The group’s EBIT margin jumped from 8.9 percent to 12.6 percent, with EBITDA margin increasing from 13.6 percent to 17.3 percent.
The profit improvement was all the more notable considering revenue was flat. Wacker Neuson posted €328.4 million (about U.S. $439 million) for the quarter compared to €329 million in the year-ago period.
A short, mild winter in Europe meant an early start to the construction season in 2014. Construction companies made a number of investments, resulting in a strong first quarter for Wacker Neuson, increasing 13 percent year over year. Consequently, the first six months of 2014 showed a 6-percent revenue hike to €620 million, compared to €586.1 million a year ago.
“We were able to further expand our market position in Europe, boosting revenue here by 10 percent,” said Cem Peksaglam, CEO of Wacker Neuson SE. “We also reported growth in North America. However, South America and Asia-Pacific developed below our expectations due to falling demand and currency fluctuations.”
The compact equipment segment was the strongest area for Wacker Neuson with a 13-percent revenue leap.
The company expects a strong year. “Strong traction from established markets in Europe and North America, plus the momentum from our current strategy path are all set to benefit our business over the current year,” added Peksaglam. “Our order books are full and order intake for compact equipment up to the end of June was 30 percent higher than the same time last year.”
The company is still predicting total revenue for the year of €1.25 to €1.3 billion. Wacker Neuson is based in Munich.