10.05.2012

Record first quarter for Palfinger

Loader crane and aerial lift manufacturer Palfinger has reported a record first quarter in terms of revenues.

Total revenues were up 16.9 percent to €223.9 million, a new first quarter record, and well ahead of 2008 levels for the first time. Europe, which still represents the majority of the group’s sales at €152.5 million (68 percent) was up 3.8 percent, thanks entirely to higher sales of cranes and access platforms.

Sales were particularly strong in Scandinavia, France, the UK and Austria. The company does not break out its access division results, but its report said “an enormous improvement in revenue was recorded by the access division” and that the business was likely to turn a profit later this year.

In other regions North America posted strong gains, while South America was lack lustre and Asia slightly lower. The highest growth came from Russia and the CIS countries, with last year’s acquisition of Inman beginning to kick in.

Pre Tax profits for the group were up almost 24 percent to €14.7 million, while the European division, which generates the bulk of Palfinger’s profits, saw operating income grow around 11 percent to €21.6 million.

Chief executive Herbert Ortner said: “We are more than satisfied with the first quarter. Despite the difficult environment, we managed to record excellent growth rates and in February we finalized probably the biggest project since Palfinger’s IPO in 1999, namely the establishment of a partnership with Sany Heavy Industry, one of China’s industrial giants. We have opened up the Chinese market in time to celebrate the 80th anniversary of the Palfinger group in 2012. We expect that this milestone will safeguard the Group’s leading position worldwide in the long term.”

Vertikal Comment

Another excellent quarter from Palfinger, with much more to come, the company extracts and amazing performance from its loader crane business in Europe and has invested heavily in restructuring its other European operations - including access - so that they might provide similar performances when the economy begins to grow more evenly again.

Meanwhile overseas its North American operation has moved into profit and is beginning to gather some momentum, although a great deal of integration is still required. It also has solid footholds in South America, India and now with the joint venture with Sany – China.

The future looks very bright, but Palfinger needs to ensure that Europe is not neglected or taken for granted, as it will provide the power for the overall business for some time to come.