Wacker Neuson reported sales in the third quarter of EUR 467.2 million (about $515 million), up 12.4 percent over the same period of 2018.
Revenue in the Americas amounted to EUR 114.9 million (about $127 billion), which is an increase of 17.6 percent. Business was driven by worksite technology, including generators and light towers. Europe sales were up 10 percent (about $370 million), and Asia-Pacific sales were about $16 million.
At EUR 40.2 million ($44.4 million), profit before interest and tax (EBIT) dropped relative to the third quarter of the previous year.
“In light of the current high levels of inventory and the increasingly challenging market environment, cutbacks to production programs at our plants were more extensive than originally planned,” said CEO Martin Lehner in a prepared statement. “This led to a temporary drop in productivity.”
Furthermore, the company said an expected increase in profitability in the U.S. could not be realized within the planned timeline. Initial difficulties in rolling out new processes introduced as part of restructuring measures coupled with lower production output impacted developments here. The situation was further compounded by an unfavorable product and customer mix, according to the company.
Source: Wacker Neuson
