Wacker Neuson keeps growing despite ‘difficult conditions’
29 March 2023
Germany-based equipment manufacturer Wacker Neuson Group has posted revenue growth of more than 20% for the 2022 financial year – despite what it called “generally difficult conditions” created by the war in Ukraine and ongoing supply chain issues.
The company also said that despite the risk of sudden and significant changes in the next 12 months, the overall outlook is positive, and it forecasts revenue growth between 2 and 11% during 2023.
However, profitability was slightly weakened due to higher procurements costs, with the EBIT (Earnings Before Interest and Tax) margin falling from 10.3% to 9% despite a rise in earnings of 4.6% to €201.8 million ($219 million).
Dr Karl Tragl, chairman of the executive board and group CEO, said the company “can be very satisfied with our business performance in 2022.”
He added: “A significant rise in inflation, driven by rising material prices, increasing personnel costs and rising energy costs, combined with ongoing problems in supply chains and the imponderables surrounding the Ukraine war have placed numerous obstacles in the way of our day-to-day business, which we have successfully overcome.
Important strategic projects, such as the integration of the Enar Group [a Spanish light construction equipment manufacturer which became part of Wacker Neuson at the start of June], the significant expansion of our production capacities and a new factory construction in Serbia, were consistently driven forward by us in 2022 and secure the future viability and success of our group.”
Total revenue was €2.25 billion (US$2.44 billion), compared to €1.86 billion ($2.02 billion) in 2021.
Of this total, revenue in the Europe (EMEA) region increased to a record €1.7 billion ($1.85 billion), a rise of more than 15%, with eastern European and most northern European companies also recording double-digit growth.
In the Americas, revenue almost returned to pre-pandemic levels after increasing by nearly 40% to €459.1 million ($498 million).
Demand in the North American market developed positively across all sales channels, driven by high end-customer demand for new equipment and rental machines. As part of the diversification of the sales strategy, Wacker Neuson was able to attract additional authorised dealers in North America.
The Asia-Pacific region also developed dynamically, contributing €83.4 million ($90 million) to group revenue with growth of 38.8%. As in the previous year, growth in the region was largely driven by business development in Australia, where the dealer network was expanded, the focus on independent rental companies sharpened, and the product portfolio adapted to local needs.