08.08.2013

Record revenues for Palfinger

Austrian loader crane and access equipment manufacturer Palfinger has reported record first half revenues while profits remain flat.

Total revenues for the six months were €475.1 million up just over two percent compared to the same period last year. Pre-tax profits were up just over one percent to €32.2 million. European revenues increased just under two percent to €320.9 million making up nearly 68 percent of the total, while sales outside of Europe were €154.2 million, an increase of 3.5 percent.

Germany, Sweden and France declined during the period, with Southern Europe remaining flat, while the UK, Norway, Ireland and Denmark were all “highly positive”. Business in North and South America continued to improve as did Asia and Russia both of which saw some initial revenues from the company’s two joint ventures with Sany.

In terms of operating profit Europe improved almost three percent to €44.7 million (92 percent of EBIT), while profits in the rest of the world improved over 26 percent to €3.8 million.

Looking at product sectors, both loader cranes and truck mounted aerial lifts posted declines in revenues, while rail and marine improved, the latter due to the Dreggen acquisition late last year and offshore demand.

Moving on to the second quarter, revenues improved almost 3.5 percent to €249 million, while pre-tax profits slipped back – declining just under three percent to €16.6 million – due entirely to higher interest costs and disadvantageous exchange rates.

Chief executive Herbert Ortner said: “We are very pleased with the results recorded in the first six months. They were made possible by the internationalisation course we have pursued in recent years. The declines in revenue experienced in the European core markets were compensated by increases outside Europe. Especially in the Marine business where we scored huge successes, which is reflected in the large-scale orders obtained in February.”

Vertikal Comment

A very credible result again from Palfinger, which continues to focus on longer term growth and geographic expansion with solid progress towards its objective to build a more global business. It still needs to be careful not to take its European markets for granted , given that even in its depressed state it still represents over two thirds of revenues and most of its profit.

The company has a large number of opportunities for organic growth both in Europe and other markets and is in a good position to benefit from an upturn in the global economy. While progress outside of Europe is promising, it is quite likely that when it hits some high notes in a couple of years or so the cause of them will be a pick-up in Europe rather than elsewhere.