Light and compact equipment manufacturer Wacker Neuson Group has reported strong growth in the first half of the fiscal year 2023.
The company’s strong performance has led to an upward revision of its full-year guidance.
The Group’s revenue rose by 27.4%, reaching €1.36 billion, compared with €1.07 billion in the first half of the previous year.
The company’s earnings before interest and taxes (EBIT) reached €176.7 million, an increase of 101.9% from the same period in 2022.
Wacker Neuson attributes the surge in profitability to factors including strategic adjustments in selling prices to reflect rising material costs and innovative pricing models.
The company added that it has faced challenges such as material shortages, leading to necessary rework on produced machinery and impacting productivity.
Growth in core markets
In its release, Wacker Neuson highlighted its EBIT margin of 12.9%, a significant improvement from the 8.2% achieved in the first half of 2022.
The company added that growth was being driven by demand in the core markets of Europe and North America.
The Europe (EMEA) region witnessed a revenue increase of 23.9%, with total revenue in the first half of the year reaching €1.02 billion, compared with €826.3 million during the same period in 2022.
Wacker Neuson said European growth was driven largely by the German market, but also by significant demand in France, Eastern Europe, Northern Europe and a resurgence in Southern Europe.
Dr Karl Tragl, CEO of the Wacker Neuson Group, said, “We continued to develop positively in the second quarter despite the ongoing tense environment. This underlines the fact that we are increasingly succeeding in coping with the numerous challenges we face.
“Against the backdrop of this positive development, we raised our full-year guidance in mid-July. Nevertheless, we remain cautious for the second half of the year in order to be able to respond to a potential economic slowdown at any time.”