09.11.2012

New record for Palfinger

Palfinger has reported its third quarter results, revenues are at their highest levels for the period, although profits were flat.

Total revenues for the nine months to the end of September hit a new record for the period of €688.2 up 10.3 percent on the same period last year. Pre-tax profits were just under two percent to €43.9 million.
Revenues at European operations- which represent 67 percent of the total - came in slightly down on last year at €463 million, compared to €466 million last year. Operating profits were down 10 percent to €58.1 million.

Loader crane sales were down slightly due to slower shipments to Southern Europe, especially Italy – Germany and France were flat while Northern Europe improved. The Access business saw considerable growth in both revenues, profitability and order intake.

Revenues from the rest of the world were up 43 percent to €225.3 million while last year’s operating loss of €4.8 million was converted to a profit so far this year of €6.2 million. Some of the improvement came from shifts in exchange rate and acquisitions, especially in Russia kicking in, although organic growth was seen in the Americas.

Looking at the third quarter revenues were €223.7 million – seven percent up on the same quarter last year. Pre-tax profits slipped almost nine percent to €12.1 million. Net debt at the end of September was €187.9 million, compared to €169.8 million last year.

Chief executive Herbert Ortner said: “Our strategy has proven its worth, and this shows on all levels. Without having pursued our internationalisation strategy for many years, not only in America but also towards the BRIC countries, the present growth achieved by Palfinger would not have been possible. Our increased flexibility and our focus on fixed costs and capital employed have been major factors in generating stable results despite the weakness of markets in Europe.”

Vertikal Comment

This is decent set of results from Palfinger, but more importantly they look good for the future as the company continues to focus on the longer term as well as the current.

The company still has enormous potential to grow organically, both in Europe and around the world and seems well placed to benefit from sudden competitive changes in its main markets.