Good weather and rental demand boost Wacker Neuson

Good weather conditions in Europe and the US helped Wacker Neuson post its best quarterly results for two years. First quarter revenues were up year-on-year by 40.9% to €211.8 million and net profits rose to €9.0 million compared to a €5.7 million loss in the first quarter of 2010.

Wacker Neuson said it was now on target to generate revenues of €1 billion by 2012, a year earlier than originally forecast.

The company said the rise in revenues was largely fuelled by strong demand for light equipment in the US and strengthened by increased investments from major rental companies in both the US and Europe.

"Following the crisis, the light equipment segment was the first to show signs of recovery", said Richard Mayer, spokesperson for Wacker Neuson's executive board, "The fact that this revival is proving to be lasting rather than short-term in nature is - in our view - a very positive indicator".

Mr Mayer added that favourable Spring weather allowed the construction season to get off to an early start in its core markets of Europe and the US; "Revenue for the first quarter of 2011 almost matches that of Q1 2008 (€228.2 million), our benchmark for pre-crisis figures."

The good weather also helped Wacker's own rental business in central and eastern Europe, where sales were up 23.9% to €11.0 million for the quarter. Wacker said the rental business had benefited from previous high levels of investment in the fleet.

The company has revised upwards its forecast for the year, with revenues now expected to reach between €880 and €920 million, up from the previously forecast figure of "at least" €870 million.

Light equipment sales were up 44% and compact equipment revenues grew by 54%.

Wacker said that the Japan earthquake and tsunami did not have a negative impact on the results as it was able to fall back on its own inventories, supplemented with components from European sources.

Günther Binder, chief finance officer of Wacker Neuson, said that when the new production facility for excavators, dumpers and skid-steer loaders in Austria was completed "we will have the capacity we need to reach our ambitious growth targets for 2012 and beyond".