Wacker Neuson Stock Analysis – Was It?

Wacker Newson made a successful start in 2021. The group grew sales by 5.7% to €434 million in the first quarter. Adjusted for exchange rates, the increase was 7.4%. The group was able to increase its profitability even more. Operating results (EBIT) increased 50.9% to €43.6 million. EBIT margin increased by 300 basis points to reach 10%. In Europe, sales of €349.2 million were up 7% from the previous year.

Trade developed particularly well in the DACH region, Eastern Europe, the Benelux and Great Britain. The group developed exclusively with excavators, dumpers and compaction equipment. The service business also achieved disproportionate growth. Due to pull-forward effects regarding changes to the EU’s Phase V emissions standard, sales of compact machines for agriculture were down from the previous year’s figure. In the last year, sugar production plants and dealer organizations were stalled for several weeks due to the spread of the coronavirus.

In the US region, currency-adjusted sales decreased 4.3%. Meanwhile, business conditions have improved significantly. The demand for retail partners as well as rental chains is growing positively. With gratifying results for the first three months, Wacker has a solid foundation from which to achieve his goals for the year. In addition, incoming orders keep evolving dynamically.

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About the Author: Forrest Morton

Organizer. Zombie aficionado. Wannabe reader. Passionate writer. Twitter lover. Music scholar. Web expert.

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