Wacker Neuson ‘optimistic’ in 2021

Wacker Neuson group Headquarters in Munich, Germany.

The firm’s Executive Board said it is currently anticipating its 2021 revenue to be between €1.7 ($2.0) and €1.8 billion ($2.1 billion), with an EBIT (earnings before interest and tax) margin between 8.0 and 9.5% – up from 4.7% last year.

This is due in part to a “significantly higher order backlog” than last year across its light equipment, compact equipment and services segments.

Kurt Helletzgruber, CEO and CFO of the Wacker Neuson Group, said: “Covid-19 presented all of us with sizeable challenges over the past year, and the pandemic is far from over.

“Nevertheless, all signs are pointing towards renewed growth in 2021 and we are very confident about the coming weeks and months. Our customers are busy and our order books are well filled.”

Overall, Wacker Neuson’s 2020 revenue was 15% lower than it was for the previous year.

Revenues in Europe fell 6.5% to €1.3 billion ($1.5 billion) last year, and in Asia Pacific decreased from €62.6 million ($73.7 million) in 2019 to €55.4 million ($65.2 million).

However, revenues for the Americas dropped by 41.2% to €270 million ($318 million) compared to €459 million ($540 million) in 2019, due to impact of Covid-19 and a “strong reluctance to invest among major customers and rental chains”. Cut backs in capital expenditure by large rental fleets were the main reason for the dramatic decline.

While Wacker Neuson said continuing negative effects of the pandemic were a source of risk to the supply chain, the group has taken steps to strengthen its financial standing.

In June of 2020 shareholders agreed to suspend dividend payouts and, after considerable expansion over the past few years, the group has is now focusing on streamlining its operational structure.

Kurt said, “We worked hard on improving efficiency levels across the entire Group last year. We are not yet where we want to be but I am very optimistic about the development of our profitability for 2021 and beyond.”