Bobcat and Wacker Neuson: 2019 abstract
Bobcat and Wacker Neuson between recent past and near future Bobcat and Wacker Neuson: what is the budget for 2019? Bobcat and Wacker Neuson have two points in common: they are leaders in the production of mini-excavators, skid steer loaders and small construction machinery in general. Secondly, both Germans and Americans had bet in electrification. […]
Bobcat and Wacker Neuson between recent past and near future
Bobcat and Wacker Neuson: what is the budget for 2019? Bobcat and Wacker Neuson have two points in common: they are leaders in the production of mini-excavators, skid steer loaders and small construction machinery in general. Secondly, both Germans and Americans had bet in electrification. We rely on their words to understand how 2019 went and the outlook for 2020.
Wacker Neuson
Leading light and compact equipment manufacturer the Wacker Neuson Group saw revenue rise 11.2 percent to EUR 1,901.1 million in fiscal 2019 (2018: EUR 1,710.0 million). Adjusted for currency effects, this corresponds to an increase of 9.8 percent. Business grew across all regions and business segments. The Group benefited above all from positive trends in European and North American construction markets as well as strong demand for Kramer- and Weidemann-branded agricultural equipment.
TWO YEARS AGO: WACKER NEUSON FISCAL 2018
«Last year, we once again managed to gain shares in many markets – challenging markets included – thanks to our innovative product developments,» explains Martin Lehner, CEO of Wacker Neuson SE. «Strong demand for our products confirms that we are in tune with our customers’ needs and that our services resonate strongly with the market.» While the Group exceeded its revenue guidance, it was unable to achieve its profitability goals. Profit before interest and tax (EBIT) decreased 5.7 percent to EUR 153.1 million (2018: EUR 162.3 million). The EBIT margin amounted to 8.1 percent (2018: 9.5 percent). This decrease was attributable to a number of factors including cutbacks in production programs related to inventory streamlining plans. Restructuring measures at the North American plant in Menomonee Falls also had a dampening effect here. As a consequence, the projected increase in profitability could not be realized within the planned timeline. In addition, inventory streamlining resulted in extensive volumes of equipment in North America and Scandinavia in particular being sold off. This squeezed profit levels further. In light of weaker profitability, the Executive Board has agreed on a program aimed at reducing costs and improving efficiency. This is expected to yield potential savings of around EUR 50 million relative to fiscal 2019, which should be achieved gradually over the course of 2020 and 2021. In addition to increasing productivity at the production plants, the Group plans efficiency-enhancing adjustments to the sales organization. Other initiatives include reducing material and procurement costs as well as optimizing outbound logistics.
«We are not satisfied with the development of our profit figures. The program that has now been approved will help improve Group profitability sustainably and enable us to achieve the goals set out in our Strategy 2022,» adds Wilfried Trepels, CFO of Wacker Neuson SE.
Wacker Neuson 2020 outlook
Order intake at the start of 2020 was below the strong baseline from the previous year. Significant uncertainties exist with respect to the continued spread of the coronavirus and the related effects on customer demand as well as the supply chains of the Group. The Executive Board assumes that the production numbers initially planned for the year 2020 can partially not be met due to bottlenecks in the supply chains. Furthermore, a severe weakening of individual markets can be expected.
Doosan Bobcat
Doosan Bobcat EMEA has announced unprecedently successful results for 2019. Total sales for Doosan Bobcat and Doosan Portable Power products in EMEA and outside of EMEA region grew by 12.8% to 863 million EUR in 2019, compared to the previous year. This contributed to overall worldwide sales growth of 7.2%, including particularly strong performances in Europe and North America. For the Bobcat range in EMEA, the total sales units growth reached 11.0% in 2019 compared to 2018, with impressive growth of 12.7% in the sales of Bobcat skid-steer loaders, where the company is number one in the world with more skid-steer loaders sold than all of the competitors combined. There was eye-catching growth of 7.1% in the sales of Bobcat mini-excavators and a pronounced increase of around 15.2% in the sales of Bobcat compact track loaders. 2019 also saw astounding sales figures for both Bobcat telehandlers and Bobcat backhoe loaders, which grew by around 16.7% and 37.2%, respectively.
Bobcat 2020 outlook
New Product Launches and Outlook for 2020
Mike Vought, Senior Director for Product Management at Doosan Bobcat EMEA, said: «Product innovation is our core focus and driver on the way to our vision – becoming the leader in compact equipment. To make this vision come true, we will be introducing an unprecedented number of new products and technologies. In 2020, we will be launching 48 new or significantly upgraded products in eight different product categories of which some will be new to Bobcat. We believe that our strong focus on innovation will be the key driver to help us navigate safely through these turbulent times related to coronavirus spread.»
