25.08.2004

First half sales jump in line with Palfinger's plan

Palfinger, the Austria-based knuckle boom crane producer, has posted sales of €190,6 million (UK£128.3 million) for the first half of 2004, a €23 million (£15.5 million), or 14.3 percent, increase over the same period in 2003. Profit before tax also showed strong growth to €16 million (£10.8 million), a 10.6 percent increase over 2003.

Palfinger said that the successful implementation of the new SAP parts system at all of its European production divisions during the first quarter of 2004 had lead to expected production capacity decreases.

The ‘one time’ effects of the SAP implementation and the establishment of the cylinder production plant in Tenevo, Bulgaria, also affected first-quarter earnings negatively compared to the same period of the previous year.

This was fully compensated for, however, by a rise in production to full capacity during the second quarter, at which time, ‘production increased to higher levels than in 2003.'

This production increase though lead to 'supply bottlenecks and component price increases, in spite of annual contracts with suppliers,' according to Palfinger.

'The resultant increases in costs can only be partially passed on to customers, and with a time lag,’ the company said.

Palfinger attributed the 2004 first quarter revenue increase largely to developments in North America and growing interest in newer hydraulic systems. The revenue increase in the second quarter was mostly put down to strong performance by Palfinger's European crane operations.

Looking forward, the company remains confident that it will exceed 2003’s record revenue of €334.1 million (£225 million), generated by the sales of more than 18,000 cranes and systems, by the year-end.