03.02.2012

Record year for Palfinger

Crane and access equipment manufacturer Palfinger has reported record revenues for 2011.

Total revenues increased by almost 30 percent to €845.7 million, while pre-tax profits jumped more than 90 percent to €57 million as both higher revenues and margins made an impact.

Sales were up strongly in many parts of Europe, although Spain, Greece and Portugal have remained depressed. The rest of the world also grew strongly with and now represents 26.5 percent of the company’s total unit sales.

Net debt was up very slightly to €166.9, in spite of a strong increase in free cash flow from €4.2 million last year to €11.7 million this year. This might reflect the acquisition of Russian crane manufacturer Inman in August and the programme to buy back shares.

In Europe, business improved across all product groups, but loader cranes led the way. Outside of Europe North America led the way with strong revenue growth, largely driven by the company’s 2010 acquisition of vehicle mounted aerial lift manufacturer ETI, which alone represented 25 percent of the Rest Of the World revenue increases.

Margin improvements were, said the company by the increased demand, but also from increased productivity and capacity utilisation and enhanced flexibility. Substantial improvements were made in this area by the Access division – Palfinger/Wumag/Bison.

Chief executive Herbert Ortner said: “the internationalisation achieved in recent years has not only contributed to this growth, but has made it possible in the first place. In the second half of the year, which was ill-omened due to the global financial policy debate, we observed greater restraint in Europe, while the regions outside Europe continued to show positive performance.”

Palfinger has yet to publish its full report so we may add to this bulletin once we have a chance to look over it.

Vertikal Comment

This is another excellent set of numbers from Palfinger, while it has achieved record numbers in 2011 it still has enormous potential for further growth, even without further acquisitions. Financially though it has the capability to make some interesting purchases if the right opportunities arise.

While the company has stated that it expects to maintain current revenues levels through 2012, if the current economic trend were to continue, the company could come close to achieving its first €billion year – it has already achieved a $billion this year – ($1.11 billion).