27.04.2010

Liebherr Drops 16.9%

Liebherr the world’s largest crane maker has reported full year revenues for 2009 of €6.986 billion a fall of 16.9 percent on 2008. The company which is family owned, said that in spite of the fall its net result marginally improved, possibly due to construction taking making up a smaller percentage of the total?

Overall crane sales, including Mobile cranes, tower cranes and maritime cranes were down around 16 percent – “around“ because the tower crane sales include concrete technology We would estimate the total group crane sales at around €2.7 billion (Sales of all crane and concrete products were €2.954 billion).

-Mobile crane sales were down just 7.2 percent to €1.77 billion
-Tower cranes and concrete technology fell by 48.7 percent to €514 million
-Maritime crane sales increased by 7.3 percent to €673.7 million

In Western Europe group revenues dropped 20.4 percent to €3,688.2 million or 53 percent of the total. In Eastern Europe it was down 40 percent to €512.5 million.

In the Middle East revenues climbed by almost 42 percent to €585.2 million, this included a special project in Saudi Arabia.

In the Americas sales fell by 22.4 percent to €870.9 million, with an increase in Brazil more than offset by falls in the USA and Canada.

In Africa revenues fell back just over 12 percent to €375.8 million. While in the Far East and Australasia region revenues were stable at €953.4 million, with strong growth in China.

The group invested €656 million in 2009, 28 percent below its 2008 levels.
The expenditure included plant expansions in Ehingen, Rostock and Kempten, where the group manufactures mobile cranes, maritime cranes and machine tools respectively.

Work continued on a new earthmoving and tower crane plant for the Russian market and work began in India on the construction of a production plant for drive technology components.

The number of employees at the end of the year totalled 32,091, compared with 32,600 at the end of 2008.

In Germany Liebherr employs 13,891 – down from 14,166 in 2008, at the end of the year, the company and its workforces agreed a package of job security measures ranging from a reduction in overtime to internal capacity equalising moves and short-time working.

In Austria the employment fell by 171 to 4,646, in France it now employs 2,688 people, 376 fewer than in 2008. In the rest of Europe employment was relatively stable, while outside Europe it now employs 5,564 an overall increase of 332.

Vertikal Comment

If Liebherr was a piece of construction equipment it would surely be a large bulldozer. It pushes ahead relentlessly, ploughing through even the largest recession with a clear focus on the future whilke hardly missing a beat.

Its display at Bauma last week was without question the talk of the show with even the most hardened cynics admitting that the word impressive was a gross understatement. While some commented that such an expense might be considered to be out of place in these tough times and explain premium prices, as the week progressed the overriding feedback we received at our extremely modest encampment opposite was one of respect.

Following on from that, these impressive results vindicate the group’s strategy, one that is probably only open to a privately held family company. Expect 2010 to show the return to growth, as the company leads the climb out of recession.

There is really not much more to say.