Wacker Neuson SE (WKRCF.PK), a German maker of construction equipment and machines, on Tuesday posted a decline in net profit for the first quarter, amidst the persisting uneasy situation in the supply chains and sharp increase in costs. However, per share earnings edged up for the period.
For the full year, the company reiterated its guidance.
For the first three-month period of 2022, Wacker Neuson reported a profit of 28.6 million euros or 0.42 euro per share, compared with 29.1 million euros or 0.41 euro per share reported for the same period last year.
Earnings before interest and tax (EBIT) were 39.1 million euros, less than 43.6 million euros of last year.
With an EBIT margin of 7.5 percent, profitability in the first quarter was 2.5 percentage points below the 10 percent recorded a year ago.
The company said: “The repeated interruptions in machine production and the necessary rework as a result of the overstretched supply chains resulted in additional work that impacted productivity in the plants. The gross margin came under additional pressure as a result of higher procurement costs for materials and energy as well as significantly higher transport costs.”
The Munich-headquartered firm registered its sales at 521.6 million euros as against 434 million euros, recorded for the first quarter of 2021.
Moving forward, for the fiscal 2022, Wacker Neuson continues to expect its sales to be in the range of 1.900 billion- 2.100 billion with an EBIT margin range of 9 percent – 10.5 percent.
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