10.08.2011

Palfinger rises 39.3%

Loader crane and aerial lift manufacturer Palfinger has reported half year revenues up 39.3 percent on 2010, with a record second quarter and profits almost tripling.

Total revenues for the six months were €414.3 million 39.3 percent higher than at the same period last year. Pre-tax profits jumped from $11.9 last year to €30.07 million this year, a rise of more than 255 percent. Around one third of the increase was due to organic growth, most of which was generated in Europe, while acquisitions made up the balance.

Second quarter revenues were €222.7 the highest level in Palfinger’s history . According to the company the performance in Europe reflects a marked growth in demand across many of the countries in which it operates, although business remains slow in Spain, Portugal, Greece, Romania and Ukraine.

While the first half has been very strong Palfinger is hesitant about the outlook going forward, saying: “At the end of the second quarter uncertainty in the markets increased and the mood turned gloomy.”

Chief executive Herbert Ortner said: “As evidenced by the results, the first half-year was extremely positive as a whole. We are particularly pleased with the success achieved in several previously weak fields: Primarily the Hookloader business unit where we achieved sustainable turnaround and North America where, based on our intense market development efforts, we recorded a positive result for the first time in the second quarter”.

“Management’s outlook for 2011 is optimistic. However, the massive growth rates achieved in the first half will slow down in the light of the expected economic developments and the traditionally weaker summer months. On the basis of the current economic environment, it is estimated that organic revenue growth will be more than 20 percent. In addition, North and South America and the Access Platforms and Hookloader business units are expected to make more substantial contributions to earnings.”

Vertikal Comment

This is an excellent result from Palfinger which confirms the strong pick up in European markets for lifting equipment, while it is also benefiting from the solid measures that it has taken in markets such as North America where acquisitions have helped accelerate the company’s move towards a critical mass.

While the company is right to flag the rapidly darkening financial mood of the summer, it is well placed to both weather any storm and benefit from the on-going, albeit ‘steady’ growth trends that are likely to continue, subject to a total meltdown.