Wacker Neuson Raises 2023 Outlook After Strong Q2
Shares in Wacker Neuson, the German manufacturer of construction equipment, saw a rise on Tuesday. This comes as the company announced an increase in profit and revenue for the second quarter, despite concerns of a possible economic slowdown for the remainder of the year.
At 0722 GMT, Wacker Neuson shares rose by 4% to EUR24.60.
Revised Revenue and Earnings Forecast
Wacker Neuson now expects its revenue to be between 2.50 billion euros and 2.70 billion euros ($2.75 billion-$2.97 billion). This is compared to the previous forecast of EUR2.30 billion to EUR2.50 billion. Additionally, the company anticipates an earnings before interest and taxes margin between 10% and 11%, up from its prior outlook of 9.5% to 10.5%.
"The biggest challenge in the second half of the year is the global macroeconomic situation," stated the company.
Strong Second Quarter Performance
In the second quarter, Wacker Neuson reported an after-tax profit of EUR63.6 million, a significant increase from EUR37.5 million in the same period last year. Revenue also showed strong growth, rising by 27% to reach EUR698.7 million. This was largely driven by robust demand in Europe and North America.
Furthermore, EBIT amounted to EUR88.9 million, up from EUR48.4 million.
Offsetting Material Costs
By adjusting selling prices to counterbalance increases in the cost of materials, Wacker Neuson was able to achieve higher profitability.
Supply-Chain Challenges
Although there were production delays and ongoing supply-chain issues that caused high stocks and increased inventories of work in progress, the company noted that the situation had improved compared to the previous year.
All Rights Reserved © 2024
Post a comment