•EBIT margin 8.2 percent (-2.6 pp yoy); profitability impacted by ongoing supply chain strains and persistently high costs for materials, energy and shipping; second quarter earnings develop positively relative to Q1 (+1.3 pp)
•Increase in net working capital due to limited material availability and to ensure security of supply
•Supply chains and price dynamics in procurement market remain biggest challenges
•Revenue guidance unchanged at EUR 1,900 to 2,100 million; earnings guidance narrowed with EBIT margin set between 9.0 and 10.0 percent
A leading manufacturer of light and compact equipment, the Wacker Neuson Group remained on its revenue growth path in the second quarter of 2022. Group revenue for the first half of 2022 reached a new record of EUR 1,072.5 million, which is a rise of 15.5 percent relative to the previous year (H1/21: EUR 928.3 million). Adjusted for currency effects, this corresponds to an increase of 13.2 percent. Profitability remained under pressure against the backdrop of ongoing supply chain strains and persistently high costs for materials, energy and shipping. Earnings before interest and tax (EBIT) fell 12.6 percent to EUR 87.5 million (H1/21: EUR 100.1 million). The EBIT margin amounted to 8.2 percent, which represents a decline of 260 basis points (H1/21: 10.8 percent). In the second quarter, the EBIT margin improved by 1.3 percentage points relative to the first quarter (Q2/22: 8.8 percent; Q1/22: 7.5 percent).
“Customer demand for our innovative and reliable products remains consistently strong. Order intake was already at a very high level in the first quarter and this positive momentum accelerated even further in the second quarter. We thus have an order backlog extending well beyond the current fiscal year. However, there are still no signs of improvement in the supply situation, and material, energy and shipping costs remain high – all of which has a negative impact on our profitability. On the other hand, we do expect our price increases to have a positive impact on gross margin from the third quarter onwards,” outlines Dr. Karl Tragl, Chairman of the Executive Board and CEO of the Wacker Neuson Group.
Wacker Neuson SE
+49 89 35402-0