Third-quarter revenue was up 18.1 percent over the same period a year ago for Wacker Neuson Group. The company reported about $527 million for the quarter.
As with other manufacturers, Wacker Neuson cited material shortages and the resulting interruptions to production as curbs to growth, although the Group largely managed to avoid extended production shutdowns. Profit before interest and tax (EBIT) almost doubled to about $51 million.
“The third quarter was a successful but also very difficult three months for us,” said CEO Karl Tragl in a prepared statement. “Supply chain strains and repeated disruptions were major challenges for our teams, suppliers and business partners—and there are still no signs of easing.”
A rise in prices for raw materials, components and shipping had an increasingly dampening effect over the course of the year. In addition, material shortages and the resulting production disruptions and rework efforts all had a negative impact on productivity.
Revenue for the Americas in the third quarter amounted to about $96 million, up 27.9 percent over the same period in 2020. The Group benefitted here from a number of developments including a rebound in the worksite technology product business and significant gains with excavators and wheel loaders.
A rise in prices for raw materials, components and shipping had an increasingly dampening effect over the course of the year. In addition, material shortages and the resulting production disruptions and rework efforts all had a negative impact on productivity.
Order intake was strong in the quarter, but executives expect increased production downtime in the fourth quarter due to depleted material reserves and ongoing supply issues. In addition to this, the ever-rising prices for raw materials, components, and shipping will have a greater impact than in recent months.
Taking into consideration the development of business to date, the prevailing conditions, and the opportunities and risks facing the company, it raised its revenue and earnings guidance for 2021 as a whole. Revenue is now projected to range between about $2.03 billion to $2.14 billion.
Source: Wacker Neuson
