Wacker Construction Equipment AG aiming for further sales and earnings growth in 2007

8/16/2007, 8:30 AM (Source: GlobeNewswire)
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Q2 report: results for first half of 2007 in line with budgetary
plans

(Munich, August 16, 2007) Wacker Construction Equipment AG reported
that results for the first half of fiscal 2007 align with budgetary
targets, with Group sales up 8.1 percent on the previous year. The
company is aiming for further sales and profit growth over the
current fiscal year. The merger with Neuson Kramer Baumaschinen AG
(Austria) is scheduled to go ahead in summer 2007.

Dynamic sales trend in Europe
Thanks to the continued high demand for Wacker products and services,
sales for the first half of 2007 jumped 8.1 percent, to EUR 341.7
million. Organic growth accounted for 7.4 percent of this increase.
Discounting exchange rate fluctuations, sales would have been up 11.5
percent. "These results align with our projections and sales are
showing an upward trend across all business segments. We are seeing
especially strong growth in Europe, in particular in Germany,"
explains Dr. Georg Sick, CEO and Chairman of the Executive Board of
Wacker Construction Equipment AG. Sales in the Europe region rose
16.5 percent in the first half-year, to EUR 223.2 million, with
Germany (excluding Weidemann GmbH) reporting 28.8-percent growth to
reach EUR 69.9 million. Following a weaker first quarter in the
Americas region, the second quarter saw sales almost regain the
previous year's level at EUR 55.9 million (2006: EUR 56.0 million)
despite the uncertainty surrounding the US property market. In the
Asia region, sales in the second quarter grew 7.3 percent to EUR 6.0
million.

Profit reflects planned and anticipated one-off expenses
While profit before interest, tax, depreciation and amortization
(EBITDA) in the first six months increased by 0.8 percent to EUR 55.3
million, profit before interest and tax (EBIT) dropped 4.4 percent to
EUR 41.9 million. However, discounting planned and anticipated
one-off expenses amounting to EUR 9.7 million, EBIT actually rose
17.7 percent in the first half-year. These one-off expenses include
in particular costs for the bauma construction equipment trade fair,
held every three years, and a reduction in interim profits as a
result of the inventory build-up recorded as of June 30, 2007.

Positive outlook for fiscal 2007
In the first half of 2007, revenue from the rental business in
Germany, Austria, Switzerland and the Netherlands in combination with
Poland and the Czech Republic rose 40.7 percent to EUR 21.6 million.
"We are now aiming to grow sales and earnings even further for fiscal
2007 as a whole," states Sick. Provided business development is
stable in the Europe region and the USA, the company expects sales of
EUR 655 to 670 million (previous year: EUR 619.3 million) and EBITDA
of EUR 110 to 115 million (previous year: EUR 100.2 million). Wacker
plans to expand its rental business in Central and Eastern Europe,
its compact equipment business segment and its global sales and
service network.

Merger with Neuson Kramer planned for summer 2007
As previously announced, Wacker Construction Equipment AG and Neuson
Kramer Baumaschinen AG aim to conclude an agreement to merge in
summer 2007. Strong demand for Neuson Kramer Baumaschinen AG products
in Europe pushed preliminary group-wide sales for the first half of
fiscal year 2007/2008 (February 1 - July 31) up 30.3 percent to EUR
181.0 million, preliminary figures for profit before interest and tax
(EBIT) rose by 45.2 percent to EUR 36.0 million.

Key figures for the first half-year, fiscal 2007

2007 2006 Difference
€ million € million
Sales 341.7 316.0 + 8.1%
by region
- Europe 223.2 191.5 + 16.5%
- Americas 107.7 113.4 - 4.9%
- Asia 10.7 11.1 - 3.5%
by business segment[1]
- Light equipment 223.1 209.8 + 6.3 %
- Compact equipment 46.3 45.5 + 1.8 %
- Services 72.3 60.7 + 19.1 %
EBITDA 55.3 54.8 + 0.8 %
EBIT 41.9 43.8 - 4.4 %
EBT 40.8 43.3 - 5.8%
Profit for the period 24.8 27.6 - 10.2%
Employees 2,932 2,775 + 5.6%

[1]Consolidated sales after discounts

About Wacker Construction Equipment AG:
Founded in 1848 as a blacksmith's shop, today Wacker is a major
global manufacturer of high-quality light and compact equipment
designed to help customers increase operational efficiency. With over
250 product categories and complementary rental, spare parts and
repair services, Wacker is the partner of choice among professional
users in construction, gardening, landscaping and agriculture. The
company has over 160 sales and service stations in more than 30
countries, ensuring it has the consulting and support depth and reach
necessary to give its customers the best possible service. In fiscal
2006, Wacker increased sales by 23.1 percent to EUR 619.3 million and
profit before interest and tax by 51.3 percent to EUR 76.7 million.
Maintaining its traditional roots, the company is almost exclusively
in the hands of its founder family.

The half year report is available from the Investor Relations section
at www.company.wackergroup.com

Contact:
Wacker Construction Equipment AG
Imre Szerdahelyi
Head of Corporate Communication
Preußenstr. 41, 80809 Munich, Germany
Tel. + 49 - 89 - 354 02 - 251
E-Mail: ir@eu.wackergroup.com
Internet: www.wackergroup.com

Disclaimer:

This publication constitutes neither an offer to sell nor an
invitation to buy securities.

This document does not constitute an offer of securities for sale or
a solicitation of an offer to purchase securities in the United
States. The shares in Wacker Construction Equipment AG (the "Shares")
may not be offered or sold in the United States absent registration
or an exemption from registration under the U.S. Securities Act of
1933, as amended. Neither Wacker Construction Equipment AG nor any
selling shareholder intends to register any portion of the offering
in the United States or to conduct a public offering of the Shares in
the United States.

This document is only being distributed to and is only directed at
(i) persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services
and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order")
or (iii) high net worth entities, and other persons to whom it may
lawfully be communicated, falling within Article 49(2)(a) to (d) of
the Order (all such persons together being referred to as "relevant
persons"). The Shares are only available to, and any invitation,
offer or agreement to subscribe, purchase or otherwise acquire such
securities will be engaged in only with, relevant persons. Any person
who is not a relevant person should not act or rely on this document
or any of its contents.



--- End of Message ---

Wacker Construction Equipment AG
Preußenstr. 41 München
Deutschland

WKN: WACK01; ISIN: DE000WACK012;
Listed: Amtlicher Markt in
Frankfurter Wertpapierbörse, Prime Standard in Frankfurter
Wertpapierbörse;
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