FRANKFURT (Reuters) - Wacker Neuson (WACGn.DE) on Monday lowered its outlook for the company’s full-year operating profit margin, citing margin pressure resulting from efforts to sell off large volumes of new equipment and an impairment on raw materials.
Revenue is expected to reach 1.9 billion euros, with an earnings before interest and taxes margin of approximately 8.0%, Wacker said on Monday.
The company’s prior guidance had been for revenue to come in at the upper range of 1.775 billion to 1.850 billion euros, and for the company’s EBIT margin to be between 8.3% and 8.8%.
Wacker announced a new cost savings and efficiency plan aimed at yielding savings of up to 50 million euros relative to fiscal 2019 over the next two years. Full financial results for fiscal 2019 will be published on March 16, 2020, Wacker said.
Reporting by Edward Taylor; Editing by Angus MacSwan