Wacker Neuson 2021 Sales Up 15%

Wacker Neuson said preliminary figures indicate a 15 percent in sales in 2021 to about $2.1 billion, up from $1.9 billion in 2020. Estimated earnings for the year are about $222 million.

Despite the generally difficult conditions, the company was able to deliver more machinery to customers during the fourth quarter than had been initially assumed in light of the fact that supply chains were overstretched and repeatedly disrupted. As anticipated, however, Q4 operating profit lay below the figures for the first three quarters.

Over the course of the year, the gross margin was increasingly affected by sharp rises in material, component and shipping costs, as well as by the impact on productivity of production disruptions and rework efforts.

In view of staff shortages caused by the Omicron variant—both on the supplier side and in the company’s production and logistics network—the Executive Board anticipates prolonged supply constraints coupled with poor visibility over the first half of 2022. The resulting inefficiencies and significantly higher input and shipping costs compared with the previous year will most likely not be fully offset. However, the Executive Board continues to take a positive view of the underlying market conditions, with future demand for light and compact equipment from the construction and agricultural industries expected to remain strong.

Despite rising revenue, the Executive Board does not expect the company’s operating profitability for the first half of 2022 to reach the prior-year level. The second half-year is expected to show signs of easing on the supply chain side. The guidance for 2022 as a whole therefore places revenue in the range of $2.2 billion to $2.4 billion, representing growth rates of 2 to 13 percent in comparison with fiscal 2021.

Source: Wacker Neuson