Wacker Neuson has reported a revenue rise of 15.2% for the first half of 2019. The company’s €950 million (US$1.06 billion) figure surpasses the €825 million ($923 million) it made in the first half of 2018.
Profit before interest and tax (EBIT) for the first half of this year rose 7.4% to €84.5 million ($94.5 million), compared to €78.7 million last year ($88.1 million). The company said it expects the progress that it has already made in the US to have a tangible positive impact on profitability in the second half of 2019.
Martin Lehner, Wacker Neuson CEO, said: “The first half of the year showed us once again that our solutions meet the needs of our customers. We gained shares in numerous markets, driven largely by our many product innovations – which are key competitive differentiators for us.”
The rise in revenue was fuelled by growth in all three of the company’s reporting regions.
Revenue for Europe rose 15.5% to €692.3 million ($774 million), helped by revenue generated by Weidemann- and Kramer-branded wheeled loaders and telescopic handlers.In the Americas region, revenue amounted to €229.5 million ($257 million). The 13.7% rise is attributed to growth factors that include the expansion of Wacker Neuson’s independent dealer network.
The company’s revenue for Asia-Pacific region also increased, rising 19.9% to €28.9 million ($31.3 million). Increased production at Wacker Neuson’s plant in Pinghu, China, and its mini and compact excavator collaboration with John Deere, were said to be major factors in the growth.
While business in Australia developed slightly below expectations, Martin Lehner said: “The raft of developments that we showcased at Bauma in Munich last April illustrate that we are ideally positioned to continue along this growth path and achieve the medium-term goals set out in our Strategy 2022.”
The Germany-based company said it still expects its 2019 overall revenue to lie in the upper half of its projected range of €1.77 ($1.98 billion) to €1.85 billion ($2.07 billion).