08.11.2013

Palfinger edges up

Loader crane and aerial lift manufacturer Palfinger has reported an 8 percent increase in third quarter revenues.

Looking first at the nine month/year to date numbers, revenues increased four percent to €716.1 million, with European sales up just under four percent to €479.2 million, while sales in the rest of the world increased just over four percent to €236.9 million. Pre-tax profits for the period were €46.3 million 5.5 percent higher than last year. This driven by a 7.5 percent improvement in Europe, with an operating income of €62.3 million, and an almost 18 percent rise in the rest of the world to €7.3 million.

Moving on to the third quarter total revenues increased eight percent to €241 million with stronger sales of loader cranes in the UK, Denmark and Finland and a pick-up in Germany and slightly higher platform sales, helped by the ramping up of the new Italian joint venture. Sales of service cranes and access equipment in the USA and solid sales in Russia and Brazil also made strong contributions. Pre-tax profits for the quarter were €14.1 million, an increase of almost 17 percent.

Chief executive Herbert Ortner said: “Since the beginning of the economic crisis in 2008, the regions outside Europe have been gaining in importance. Without our international presence, we would not be able to record growth, rather the contrary. For the future, also, we see the greatest potential in the BRIC countries and the global Marine business area. We are already well-positioned in these markets and will continue to steadfastly pursue this policy.”

Vertikal Comment

Palfinger continues to keep up its long term growth plans and is now beginning to see its persistence with emerging markets and North America beginning to pay off with European sales now representing around a third of total revenues. However it still only represents just over 10 percent of operating profits – and this with a large part of Europe in recession or slow growth. However as Europe begins to pick up the company is looking at a very bright period ahead, even though we are likely to see some turbulence in 2014 as the global economic cycle improves.

As Europe grows, emerging markets that are in many cases dependent on healthy European and North American economies will also grow and Palfinger looks to be very well placed benefit substantially thanks to its long term thinking. All in all a good set of numbers.