16.06.2014

Strong crane sales growth at Liebherr

Liebherr has issued its annual results for 2013 which show strong growth in crane sales, while overall revenues were flat.

Mobile crane sales improved 7.1 percent to €2.08 billion, while tower crane sales jumped more than 10 percent to €395 million. Sales of Maritime cranes grew marginally to €830.1 million. Giving total crane sales for the year of €3.3 billion ($4.47 billion).

Most of the increase in mobile crane sales came from Western Europe, in particular Germany, the UK and the Netherlands, while North America and Africa also saw solid gains. While the situation improved in France, Spain, Portugal, Turkey, Norway and Sweden but deteriorated in Italy, Australia, Asia and the Middle East.

The earthmoving and mining business both suffered declines in revenues of 8.4 and 19.4 percent respectively, while other sectors, including concrete all posted gains.

Total group revenues were down 1.4 percent to €8.96 billion, while pre-tax profits slumped more than 30 percent to €566.5 million, due to exchange rate shifts and higher costs.

In terms of investment the mobile crane division spent €83.6 million on its plant in Ehingen Germany, including a new assembly building for experimental work, undercarriage acceptance testing and the assembly of large sunshades. The tower crane division invested €73.2 million in Biberach, Germany, construction for a new training centre.

The company expects total group revenues for 2014 to be roughly similar to that of 2013.

Vertikal Comment

A solid result from the crane division, although a substantial drop in profits for the group as a whole. However as a family company Liebherr focuses very much on the longer term and is unlikely to change the way it does anything as a result of weaker profit ratios. Even at these lower levels, the performance compares very well with others in the sector.