Wacker Neuson, Caterpillar--Strong pick up at Wacker Neuson

Wacker Neuson, the German based equipment manufacturer has reported a strong pick up in orders and revenues in both the first and second quarters of 2010.

The company which manufactures a wide range of products from compaction to loaders, mini excavators and telehandlers (Kramer Alrad) has only issued a preliminary indication of revenues and earnings at this stage. However it says that revenues in the second quarter were up over 31 percent to €205 million, while its order backlog for compact equipment jumped 350 percent.

Revenues for the half year will be €355 million up 22 percent on the same period last year. EBITDA for the quarter is expected to come in at almost double that of the same quarter last year at around €27.0 million – making it over €30 million for the half year compared to just over €1 million in the first six months of 2009.

The company says that the improvement in order intake – almost double that of last year - is led by its compact equipment – fuelled by both construction and agriculture. It adds that the upturn was also accompanied by delivery bottlenecks from some suppliers which disrupted production.

Chief executive Dr. Georg Sick said: “Our production facilities for light and compact equipment such as wheel loaders, dumpers and excavators show a healthy level of capacity utilisation. In addition, our recent alliance with Caterpillar has the effect of accelerating construction plans for our new production facility in Hörsching, near Linz in Austria.”

Dr. Georg Sick

The company has also recently concluded a strategic alliance with Caterpillar in which both companies have agreed to collaborate over the next 20 years. Starting in 2011, Wacker Neuson will exclusively develop mini excavators up to three tons and manufacture them at its plant in Austria. Caterpillar will use these machines to meet worldwide demand for its mini excavators outside of Japan.

“Caterpillar has the world’s strongest distribution network. This strategic alliance allows us to increase production volumes, reduce manufacturing costs and strengthen the competitive positions of both companies in what is a highly fragmented market,” added Sick.

“Mid-term, we are planning to more than double unit production in this product class. And this strategic alliance will also impact positively on our development and manufacturing competencies.”

Source: Vertikal.net