Wacker Neuson optimistic for 2017Published 16/5 at 12:10
Wacker Neuson recorded pretax, preinterst profit of €88.1M in 2016, a drop of 15% on the pervious year’s 103.6M, on sales which stagnated at €1.38bn.
“We were unable to escape the difficulties in our markets. Our business in North America was particularly hard hit with revenue from light equipment in the region contracting in particular in 2016. In addition to this, demand for compact equipment in the European agricultural sector was weak,” said Wacker Neuson chief executive Cem Peksaglam. “Our core region Europe was our revenue driver in 2016 and we broke the billion-euro revenue threshold for the first time here. This enabled us to keep overall revenue at the same level as the previous year.”
The Group made a number of key investments in 2016. “Despite economic headwinds, we initiated important projects last year to create an even more solid foundation for our future success. We continued to expand our international reach in 2016, by opening a new production plant in Brazil and by starting construction on a production facility in China. We firmly believe that a regional presence, on both the development and production front, is essential to successfully develop these fast-growing markets in the long term,” said Peksaglam.
The Group is set on further expansion and expects to develop positively in 2017 and expects revenue next year to range between €1.4bn and €1.45bn. “We are optimistic about 2017 because customer confidence has increased overall. We believe that key markets such as North America will start to develop much more positively for us,” said Peksaglam. “Our markets are without doubt cyclical and we are used to peaks and troughs. After a challenging past 18 months, we expect 2017 to be a year of growth for us, also in terms of earnings. Our order books are very healthy.”