Slow start in 2024 for Wacker Neuson

Wacker Neuson Group says it has seen a slow start to the fiscal year 2024 due to the ongoing economic slowdown in the construction sector. High dealer inventories are also leading to a weaker order intake and make it more difficult to reduce net working capital. Measures to reduce production costs have already been taken, but have not yet been able to fully compensate the reduced production output.

Revenue fell by 11.1% year-over-year to €593.1 million compared with €667.2 million in the same period in the previous year. Meanwhile earnings before interest and taxes (EBIT) amounted to €36.9 million compared with €87.8 million in the previous year. At 6.2%, the EBIT margin was lower than the 13.2% in the previous year but already higher than in the previous quarter of Q4 2023, when it was 5.1%.

The Wacker Neuson Group expects market demand and plant capacity utilisation to improve over the remainder of the year, accompanied by a reduction in inventories. The full-year guidance for revenue and EBIT remains unchanged. The Group will also continue to focus on the implementation of its Strategy 2030 along the 10 strategic levers. In the long term, the Group is aiming to achieve a revenue of €4 billion, an EBIT margin of over 11% and a ratio of net working capital to revenue of less than 30%.

“After a very successful previous year, the 2024 financial year has begun with the expected challenges. The cyclical nature of the business is no surprise to us – we have already begun to adapt our structures to the lower market demand. We expect to increase revenue and profitability from quarter to quarter. We pay close attention to our annual targets and confirm them. Strategy 2030 keeps us on course in the long term and secures our track record,” explained Dr Karl Tragl, Chairman of the Executive Board and CEO of the Wacker Neuson Group.