DGAP-News: Wacker Neuson SE: Wacker Neuson SE improves asset and financial position in 2009
(firmenpresse) - Wacker Neuson SE / Final Results
26.03.2010 10:00
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Wacker Neuson SE improves asset and financial position in 2009
Equity ratio up to 81.5 percent - net financial debt converted to net
positive balance - cautiously optimistic outlook for 2010
(Munich, March 26, 2010) Due to the global recession, Wacker Neuson SE
revenue dropped significantly in fiscal 2009. Proactive go-to-market
strategies and cost-cutting measures took effect over the course of the
year, but were not sufficient to avoid the first annual loss in company
history. However, the company's asset and financial position has improved
significantly, fueling cautious optimism for fiscal 2010.
Q2 through Q4 back in the black following high operating losses in Q1
In fiscal 2009, the general climate on international construction and
agricultural markets had a negative impact on Wacker Neuson Group
performance. Revenue dropped by 31.4 percent to EUR 597.0 million (previous
year: EUR 870.3 million). While demand for compact equipment remained on a
downward spiral, demand for light equipment showed slight signs of revival
from the third quarter onwards. The rental business in Central and Eastern
Europe reported record sales, confirming that the company was on the right
track with its strategy to build this line of business in recent years. 'We
proactively and systematically implemented our go-to-market strategies and
cost-cutting measures, and succeeded in reducing our break-even point to
around EUR 600 million. We were able to mitigate our sizeable Q1 operating
loss with a modest return to the black in the remaining three quarters,'
explains Dr.-Ing. Georg Sick, CEO of Wacker Neuson SE. Profit before
interest, tax, depreciation and amortization (EBITDA) amounted to EUR 27.2
million (previous year: EUR 100.9 million). The first annual loss in
company history was reported at EUR 110.1 million (previous year: annual
profit of EUR 37.4 million). This was largely due to two one-off items -
HR-related restructuring costs (EUR 9.6 million) and non-cash write-downs,
mainly on goodwill attributable to the Neuson Kramer subgroup, in the
amount of EUR 100.3 million. Adjusted to discount these one-off items, the
net loss for the year only amounted to EUR 2.9 million. At the AGM on May
28, 2010, the Executive and Supervisory Boards will propose refraining from
making a dividend payout for the period under review in view of the
negative consolidated earnings (previous year: EUR 0.19 per share).
Pressing ahead with key strategic growth projects
Over the past year, Wacker Neuson pressed ahead with projects aimed at
securing its long-term growth objectives, particularly the global launch of
compact equipment through the existing sales and service network. The
company also invested in the expansion of sales activities, as well as in
regional expansion in Asia and was able to win new market shares as a
result. The merger-enabled increase in the depth of the company's product
portfolio was a key success factor here. The planned 20 percent reduction
in manpower capacity was achieved, where possible largely through more
flexible working hours and short-time work in various countries including
Germany. Despite concerted efforts in this area, the company was obliged to
make around 630 redundancies (temporary staff included) in 2009, reducing
headcount to 3,059 (previous year: 3,665). In total, HR, property, plant
and equipment costs were cut by around EUR 58 million. Approximately EUR 35
million of these savings are of an enduring nature.
High equity ratio and net financial debt converted to net positive balance
Wacker Neuson improved its asset and financial position significantly in
2009. Over the course of the year, it converted a net debt of EUR 59.0
million to a net positive balance of EUR 24.9 million. The company reduced
inventory levels and drastically cut working capital by EUR 86.0 million.
Cutting back on investments strengthened the company's strong financial
position, showing liquidity of EUR 85.0 million. Despite the goodwill
impairment, the company succeeded in increasing its equity ratio from 77.4
percent to 81.5 percent.
Cautiously optimistic outlook for 2010
Thanks to its sound business model, the Wacker Neuson Group is well
positioned for fiscal 2010 and feels cautiously optimistic. 'We are in a
good position to seize upcoming market opportunities and are well prepared
for an economic upturn. Demand stabilized towards the end of fiscal 2009
and this trend has continued into the first two months of fiscal 2010. We
again see positive signs for order intake for this period relative to the
same period last year,' states Sick. Wacker Neuson currently expects the
construction and agricultural markets to stabilize at a low level in the
first half of 2010 and to pick up worldwide during the second half of the
year. The company expects positive impetus from the growing need for
replacement investments due to an infrastructure backlog and, in many
countries, from various government incentive programs. 'We expect revenue
to rise by at least 5 percent in 2010. We also expect an increase in EBITDA
and a return to the profit zone at operating level,' says Sick. The company
is aware, however, that it may have to contend with delays if suppliers
have difficulty meeting orders, despite the proactive measures taken to
counter this. Starting in 2010, the company plans to launch its Farm
Mobility concept, aimed at transferring compact equipment know-how more
effectively to other Group brands and markets. The company will also
continue to launch compact equipment worldwide. In 2010, the Group intends
to invest around EUR 70.0 million in projects such as the new R&D center in
Munich (Germany) and various Group-wide maintenance projects. 'Securing our
extremely healthy asset and financial position remains a top priority. We
will continue to keep a tight rein on costs, but do not at present envisage
further staff rationalization measures,' emphasizes Sick. Acquisitions and
partnerships will remain part of the company's medium-term strategy to
strengthen the existing product offering to the benefit of customers or
expand the company's international reach.
Key figures: Wacker Neuson Group*
EUR million
Q4-2009/Q4-2009-adjusted**/Q3-2009/Q2-2009/Q1-2009
Revenue 154.2/154.2/149.0/156.5/137.3
EBITDA 10.4/10.4/15.6/13.4/-12.3
EBIT -99.7/0.6/5.9/3.2/-22.6
Consolidated earnings -99.7/-2.0/4.8/1.4/-16.6
EUR million
FY-2009/FY-2009-adjusted***/FY-2008
Revenue 597.0/597.0/870.3
EBITDA 27.2/36.7/100.9
EBIT -113.1/-3.2/58.0
Consolidated earnings -110.1/-2.9/37.4
* All figures include effects from purchase price allocation; differences
may occur as a result of figures being rounded up or down.
** Excludes write-downs on the goodwill attributed to the Neuson Kramer
subgroup in the amount of EUR 100.3 million (excl. EBITDA) and deferred tax
revenue (EUR 2.7 million; in consolidated earnings only).
*** Excludes write-downs on the goodwill attributed to the Neuson Kramer
subgroup in the amount of EUR 100.3 million (excl. EBITDA), restructuring
costs (EUR 9.6 million in 2009) and deferred tax revenue (EUR 2.7 million;
in consolidated earnings only).
Your contact partner at Wacker Neuson:
Wacker Neuson SE
Imre Szerdahelyi
Head of Corporate Communication
Preußenstr. 41
80809 Munich, Germany
Tel. +49 - (0)89 - 354 02 - 251
imre.szerdahelyi(at)wackerneuson.com
www.wackerneuson.com
About Wacker Neuson:
Wacker Neuson SE is a global manufacturer of light and compact equipment.
With over 30 affiliates and more than 180 sales and service stations across
theglobe, the new company offers a unique product portfolio. Almost all
products manufactured by the company are branded Wacker Neuson. The only
exceptions to this in Europe are Kramer-branded all-wheel loaders and
Weidemann-branded agricultural machinery, which the company plans to
strengthen and expand. With over 300 product categories and complementary
rental, spare parts and repair services, Wacker Neuson is the partner of
choice among professional users in construction, gardening, landscaping and
agriculture, as well as among municipal bodies and companies in the
industrial and recycling sectors.
26.03.2010 10:00 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Wacker Neuson SE
Preußenstr. 41
80809 München
Deutschland
Phone: +49 - (0)89 - 354 02 - 0
Fax: +49 - (0)89 - 354 02 - 390
E-mail: info(at)wackerneuson.com
Internet: www.wackerneuson.com
ISIN: DE000WACK012
WKN: WACK01
Listed: Regulierter Markt inFrankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hannover, München, Hamburg, Stuttgart
End of News DGAP News-Service
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