10.04.2013

Liebherr confirms record results

Crane and equipment manufacturer Liebherr has reported a 9.2 percent rise in total revenues to €9.1 billion ($11.9 billion) for 2012 – the highest in its history.

Overall crane sales - including mobile cranes, tower and maritime cranes were up almost seven percent to around €3.35 billion ($4.38 billion) – 'around' because its tower and duty cycle crane business is rolled in with concrete mixing products – so we are obliged to estimate the crane element of that division.

The mobile crane business grew 12 percent to just over €1.94 billion ($2.53 billion)– very close to its all-time record set in 2008. The tower crane and concrete technology division was roughly flat at €580 million, while maritime crane sales improved three percent to around €830 million ($1.08 billion).

Geographically Europe remains the largest market for the Liebherr group at 55 percent of total sales, while Germany, Russia, the USA, Australia, France, Great Britain, Brazil, Canada, the Netherlands and Austria remained the group’s 10 largest markets.

Western European sales were up four percent, while Eastern Europe grew by 16 percent. The Near and Middle East region was up six percent, while the Americas improved by 11 percent. Africa was one of the strongest areas in terms of percentage growth, up 26 percent, with sales in the Far East / Australian region, expanding by 12 percent.

The annual accounts of the group - Liebherr-International AG, in Bulle, Switzerland - indicate a surplus/net profit for the group of €540 million, 12 percent higher than in 2011.

Capital expenditure for the year was €840 million ($1.09 billion), most of which was devoted to modernisation and enlargement of its current production facilities and distribution support network, which is increasingly wholly owned. €90 million ($117 million) was invested in Ehingen for the continued construction of a large crane assembly facility for pre-delivery delivery, loading and storage. A further €80 million ($105 million) was spent on the tower crane plant in Biberach, Germany and €100 million ($131 million) was spent in the maritime cranes division in Nenzing, Austria,
Killarney, Ireland and Rostock, Germany.

In total the group employed 37,800 people at the end of 2012, up 2,470 on 2011, of these around 15,500 are based in Germany.

Outlook for 2013

Liebherr expects total revenues in 2013 to be roughly the same as in 2012, following a slower order intake in the final quarter of 2012. It says that it will continue to invest at similar levels to that for 2012, creating more new jobs as it does so.

Vertikal Comment

Liebherr is a privately held business so while it does now publish a great deal of financial information, it is not quite the same as looking at a publicly held business. However one cannot but help be impressed with the relentless progress that the company makes year on year as it focuses on the long term and on building the family business in order to benefit both the family members and its employees.

While the statement suggests flat revenues in 2013, there is of course every likelihood that we will see modest growth, possibly fuelled by its expanding mining and maritime crane operations as well as further growth in developing markets. The question is will the mobile crane division manage to beat its 2008 record in 2013 – given the pace at which it is shipping the new LTM1750.9.1 perhaps it will?

The third generation of Liebherr family members are now moving up in the business, with a steady transition planned. They look set to continue the amazing progress that the second generation has managed and one wonders how the business will look in 10 years’ time?

Hans Liebherr would be very proud to see how the company he found continues to excel.