Zeppelin Group forecasts “strong decline” in construction equipment sales
28 March 2024
From left to right: Chairman of the management board Peter Gertsmann, managing director and CHRO Alexandra Mebus, managing director and CFO Christian Dummler, and Fred Cordes, managing director and COO.
Zeppelin Group has said it is anticipating a “growing investment restraint” for the rest of 2024 due to geopolitical situation and a resulting reluctance to invest by its international customers.
The German company, which is a Caterpillar dealer, said the construction landscape in Germany was still difficult and forecast a “strong decline in sales and rentals of construction machinery and equipment.”
However, Zeppelin said there were growth opportunities in “comprehensive solutions” in rental, as well as in markets such as energy/heat generation, standby power, battery recycling and mass processing, and technologies in assistance systems, machine control, and digital service.
The statement comes as the Group announced its financial results for the year ending 2023. Group revenue was up 12% to €3.9 billion, which the company said was due to a high order backlog, while EBITDA profit rose 10% to €482 million.
All of Zeppelin’s business units saw increases in revenues except its Eurasian operation, which declined by 41% - a fall of more than €210 million - because of the exit from Russia following the war in Ukraine.
The Rental business unit saw revenues increase by 11% to €739 million. That included the acquisition of CP ApS in Denmark for €118 million (the enterprise value of the business).
Sales of construction equipment in central Europe and the Nordics - dominated by Caterpillar equipment - exceeded €2 billion, and was up around 11%.
Chairman of the management board Peter Gerstmann, who is set to step down from his post in October, said, “Despite global, geopolitical and economic uncertainties, which led to a reluctance to invest and purchase across almost all of our business segments, Zeppelin was able to increase its revenue compared to the previous year.
“In addition to the improved delivery capability of our manufacturer partner Caterpillar and the high order backlog to be processed, the great commitment and impressive loyalty of our employees were decisive for this good result.”
Christian Dummler, managing director and CFO of Zeppelin Group added, “In 2023, we once again demonstrated our high level of resilience through the strategic orientation of the company.”
According to Andreas Brand, chairman of the supervisory board, investments in infrastructure, technology and inorganic growth at a consistently high level will “secure the future viability of Zeppelin.”
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