Wacker Neuson makes a successful start to the year with a sharp rise in profitabilityPublished 8/7 at 17:11
The Wacker Neuson Group has made a successful start to 2021 with revenue for the first quarter amounting to €434.0M, a rise of 5.6% relative to the previous year.
Adjusted for currency effects, this corresponds to an increase of 7.4%. The company reported an even bigger rise in earnings with profit before interest and tax (EBIT) increasing 50.9% to €43.6M. The EBIT margin amounted to 10.0%, which is a rise of 300 basis points. “The first quarter got the year off to an exceptionally successful start for us. We are back on our growth path with a sharp rise in profitability too,” explains Kurt Helletzgruber, CEO and CFO of the Wacker Neuson Group. “Our strong performance over these first three months gives us an excellent foundation for achieving our goals for the year. At the same time, demand for our products continues to develop dynamically.”
Order intake developed dynamically in the first quarter and this trend continued into the start of the second quarter. However, significant uncertainties still overshadow the macroeconomic environment and global supply chains. “Supply chains are currently the largest area of concern for us. Demand from the market is high and topical issues such as pandemic related restrictions and the blockage of the Suez Canal are resulting in recurring bottlenecks. We have to be extremely flexible with production to ensure we don't miss out on any manufacturing slots,” adds Helletzgruber. The situation is further compounded by price increases for raw materials, components and transport. Taking the current economic climate as well as the opportunities and risks facing the Wacker Neuson Group into account, the company foresees no change to its guidance for fiscal 2021.