Wacker Neuson SE / Key word(s): Quarter Results
Disclosure of an inside information acc. to Article 17 MAR
Wacker Neuson Group expects revenue and EBIT for the second quarter to be above consensus based on preliminary figures
Munich, July 15, 2020 - The Wacker Neuson Group expects Group revenue for the second quarter 2020 to amount to around EUR 386 million (Q2/19: EUR 517.2 million), with a profit before interest and tax (EBIT) in the range of EUR 21 million to EUR 22 million (Q2/19: EUR 55.2 million) based on unaudited preliminary figures. This would correspond to an EBIT margin between 5.3 and 5.8 percent (Q2/19: 10.7 percent). The Group's revenue, EBIT and EBIT margin are above the analyst consensus collected for the company by an external service provider (mean consensus values at the time of publication of this release for Q2/20: Revenue: EUR 347.0 million, EBIT: EUR 4.1 million, EBIT margin: 1.0 percent). They are however significantly below the previous year's figures due to the effects of the covid-19 pandemic.
EBIT for the second quarter reflects an impairment loss in the amount of around EUR 9.5 million, which was identified through impairment tests undertaken in light of the current circumstances. Given the impact of the covid-19 pandemic, the Executive Board of Wacker Neuson SE decided to review the business prospects of all key Group entities. The pandemic is having a particularly marked impact on business in North America, where demand from key accounts in particular, including rental companies, continues to develop significantly below internal projections. As a result, expectations on business performance of this region have been adjusted. Based on this updated business planning and the impairment test of the entity's assets, the goodwill attributed to the US subgroup in the amount of EUR 9.5 million has been fully written down.
As a result of this impairment and losses reported by certain affiliates, the tax rate for the second quarter is around 51 percent and thus significantly higher than the prior-year figure (Q2/19: 32.7 percent). Earnings per share therefore developed below par but were still considerably higher than the mean value from analyst estimates (consensus: EUR 0.05; Q2/19: EUR 0.48).
The Group expects free cash flow for the second quarter to be in the positive high double-digit million-euro range (Q2/19: EUR -42.2 million).
The Group will publish the final results for the second quarter and first half of 2020 on August 5, 2020.
Explanations of the indicators used here can be found from page 144 onwards in the 2019 Wacker Neuson Group Annual Report. Profit before interest and tax (EBIT) for the previous year was adjusted retrospectively. This is due to a change in the way income from customer financing is reported. Interest income has been moved from the financial result and other income to the revenue line. Information on this is available on page 86 of the Annual Report.
Additional information on Wacker Neuson SE shares:
|Company:||Wacker Neuson SE|
|Phone:||+49 - (0)89 - 354 02 - 0|
|Fax:||+49 (0)89 354 02 - 298|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1094693|
|End of Announcement||DGAP News Service|