Strong sales for Wacker Neuson but CEO warns of “economic slowdown”

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Manufacturer of light and compact equipment, Wacker Neuson, has reported that its group revenue in the first nine months of 2023 was up by 23% compared to the same period last year, at €2.013 billion (US$2.148 billion).

The OEM said that its core markets in Europe and North America saw significant double-digit growth, although this was accompanied by a slowdown in momentum. Even through sales increased in 2023 Dr. Karl Tragl, CEO, Wacker Neuson Group, warned that “the economic slowdown we anticipated is now materialising in a weakening of demand.”

In Europe, Middle East and Africa (EMEA) region, by far Wacker’s largest market, revenue increased by 21% to €1.506 billion (US$1.608 billion). However, the third quarter saw a noticeable cooling of the pace of growth in all submarkets in the region compared to previous quarters. The OEM did add through that, on the product side, high demand continued, particularly for wheeled loaders and telehandlers.

The Americas region continued to show increased growth momentum over the first nine months with revenue in the region up by 34% to €447.1 million (US$477 million). This region also showed weaker development momentum in the third quarter, although demand for equipment remains high, particularly for construction site equipment and excavators.

In the Asia-Pacific region, revenue declined by 7.6% to €60.7 million (US$64.8 million) in the first nine months. This mainly accounts for the markets of China and Southeast Asia. In the Australian market, which showed a strong development in demand in the first half of the year, the economic environment also had a dampening effect in the course of the third quarter.

Dr. Karl Tragl, CEO of the Wacker Neuson Group, commented that, “As it is currently impossible to estimate the duration and depth of the slowdown, it presents a particular challenge to adapt our production, purchasing and sales to the rapidly changing market conditions.”

Wacker said that it had seen a “noticeable change in order patterns” among its customer and dealer networks in the third quarter of 2023. It added that the number of unfinished machines was significantly reduced as a result of the improved supply chain situation and the change in demand patterns caused the number of finished machines to rise sharply in the short term.