The Wacker Neuson Group once again posted dynamic growth in the first half of fiscal 2023. As a result, the company raised its full-year guidance when it published its preliminary figures for the first half of the year on July 13.
Compared to the first half of the previous year, Group revenue increased by 27.4 percent to EUR 1,365.9 million. Earnings before interest and taxes (EBIT) were 101.9 percent higher than in the previous year at EUR 176.7 million.
The increase in profitability compared to the same period of the previous year is attributable to the adjustment of selling prices to reflect increases in the cost of materials and to the flexibilization of pricing models. However, selective material bottlenecks and the resulting need for rework on the machines produced continue to impact productivity at the plants. As already published, a sale of fixed assets no longer required for operations completed in January resulted in an extraordinary positive earnings effect of around 15 million euros. At 12.9 percent, EBIT margin was significantly above the previous year.
“We continued to develop positively in the second quarter despite the ongoing tense environment. This underlines the fact that we are increasingly succeeding in coping with the numerous challenges we face,” explains Dr. Karl Tragl, CEO of the Wacker Neuson Group. “Against the backdrop of this positive development, we raised our full-year guidance in mid-July. Nevertheless, we remain cautious for the second half of the year in order to be able to respond to a potential economic slowdown at any time.”
Growth driven by high demand in Europe and North America
Continued strong demand, particularly in the core markets of Europe and North America, contributed to the significant revenue growth in the first half of the year. In the Europe (EMEA) region, revenue grew by 23.9 percent to EUR 1,023.5 million (H1 2022: EUR 826.3 million). In addition to the home market of Germany, revenue growth was also driven by the large European construction machinery market of France. In addition, many Eastern European and Northern European countries also recorded double-digit growth rates. After a weaker development in Southern Europe last year, there was a noticeable increase in demand here in the first half of 2023. By contrast, the market in the United Kingdom, which was still characterized by double-digit growth rates in 2022, showed restrained development. On the product side, demand remained high, particularly for wheel loaders and telehandlers. Demand for compact equipment for the agricultural sector under the Kramer and Weidemann brands also remained high. Revenue in the Agriculture segment again rose significantly by 51.9 percent to EUR 315.1 million (H1/2022: EUR 207.4 million).
The positive trend also continued in the Americas region. Revenue in the region grew by 48.3 percent to EUR 300.7 million (H1 2022: EUR 202.8 million). Demand in the North American market continued to develop very positively across all sales channels. End customer demand for new equipment and rental machines was high, both among Wacker Neuson’s authorized dealers as well as independent dealers and key accounts. As part of its continued diversification of its sales strategy, Wacker Neuson continued to attract additional authorized dealers in North America in the first half of 2023. In addition to the US, the Canadian market also continued to record significant growth. The Mexican market also showed encouraging development, with growth rates well into double digits.
