11.08.2010

Palfinger bounces back to profit

Loader crane and truck mounted lift manufacturer Palfinger has reported a strong improvement for the first half, with revenues up over 10 percent to €297 million. Pre-tax profits for the quarter jumped from a loss last year of €8.5 million to a profit this year of €11.9 million.

Most of the revenue increase came from outside of Europe, - European revenues were marginally higher at €225.4 million while operating profits jumped from €2.8 million to €24.5 million this year.

The results were boosted by a strong pick up in the crane division, particularly in Germany, Austria, Sweden and Belgium. Sales of aerial lifts have struggled this year in comparison to last year – Palfinger no longer splits out its sales by product line- preferring instead to break it out geographically.

Revenues for the rest of the world were up 52.8 percent to €72 million but generated a loss of €6.6 million compared to a loss of €5.5 million last year.

Vertikal Comment

This is a strong set of results from Palfinger indicating a strong bounce back in the crane market in Europe, which is still the backbone of the group.
It is unfortunate that the group no longer splits revenues by product line at least publicly, it says that sales of aerial lifts were down although this is from a very strong period last year when the company had an exceptionally strong order book.

The company is optimistic about the year as a whole although it acknowledges that conditions remain uncertain, it expects to bring the year in with around 15 percent of organic growth.

Palfinger has made some strong strategic acquisitions over the past 12 months or so and is very well placed to benefit from the upturn as it starts to gather pace. It is in a very strong position now in most of the markets in which it operates.