The Munich construction machinery manufacturer Wacker Neuson, which also operates a large plant in Leonding, is letting its shareholders share in the significantly improved profits. The proposed dividend of 90 cents per share means a dividend yield of more than four percent. 42 percent of the shares are in free float, with the Wacker and Neunteufel families holding the majority.
After a year with a decline in revenue in 2020, consolidated sales grew by 16 percent to EUR 1.87 billion in the 2021 financial year. The profit (EBIT) improved “thanks to strict cost control” from 76 to 193 million euros. The result includes a net positive effect from the reversal of bad debt allowances of plus EUR 13.5 million.
Persistent issue of lack of material
“We look back on a successful year 2021, behind which there is a great joint effort. The situation of the overstretched and repeatedly interrupted supply chains gave us a hard time,” said Karl Tragl, CEO of the Wacker Neuson Group, in a broadcast. A lack of raw materials and components repeatedly led to rework, which, in addition to higher material prices and sharply rising freight rates, had a negative impact on the margin.
In the home markets of Germany and Austria, the construction industry and thus the business of the construction machinery group, which produces excavators, dumpers and similar equipment for agriculture, is booming.
For the 2022 financial year, the Executive Board is assuming sales of between 1.9 and 2.1 billion euros, although due to the tense raw material situation and the high material and energy costs, one can only proceed on sight.
The share price rose sharply on Tuesday by 9.5 percent to EUR 21.76. In November, it reached its highest level since the beginning of 2018 at more than 30 euros. The price then plummeted until early March.
Source: Nachrichten
