07.08.2014

Europe keeps Palfinger on track

Palfinger has published its second quarter and first half results with revenue growth slowing slightly as profitability improves.

Total revenues for the first six months were €540.1 million 14 percent higher than for the same period last year, while pre-tax profits increased 10 percent to €35.6 million.

Moving on to the second quarter sales growth was a more modest nine percent to €272.5 million, while pre-tax profits climbed 12 percent to €18.6 million. Geographically Europe grew slightly faster than elsewhere and still represents just under 70 percent of revenues.

Looking at the main product sectors within Palfinger, Loader cranes are still the main driving force and posted modest growth overall, with strong increases in Germany, Austria, Switzerland and the Netherlands, while according to the company sales in Southern Europe are now progressing well. Slower sales were reported in France, South Africa and Denmark with the rest of Northern Europe maintaining last year’s revenue levels. The company says that it expects business in the second half to be slightly less positive than in the first, based on order intake in the second quarter.

Sales of truck mounted aerial lifts were flat for the first half, remaining at similar levels to that achieved in the first half of 2013. The company says that sales of its compact 3.5 tonne models from its Italian Joint Venture are progressing well, while sales of larger machines are gaining traction in China and North America.

Sales of timber handling cranes surged by 30 percent in the first half, while marine cranes improved 10 percent thanks to increasing offshore demand.
Looking at other sectors, Rail systems posted growth of 60 percent, while Hook lifts and truck mounted fork trucks sales were flat and tail lifts declined slightly.

Overall the company is maintaining its forecasts of double digit growth for the full year, thanks to improving sales outside of Europe and the various acquisitions that have completed this year and are now integrated into the business. This is certain to take the company up over the €billion revenue level for the first time in its history.

Chief executive Herbert Ortner said: “We are satisfied with Palfinger’s performance in the first half of 2014. We continued to grow in Europe and managed to compensate the first-quarter slump caused by the harsh winter in North America. Our marine business activities developed as planned, increasing by approximately 10 percent. Above all, the consolidation of our market position as compared to our competitors is a clear sign that we are headed in the right direction.”

Vertikal Comment

Another solid set of numbers from Palfinger, which also show how important it is not to take its eye off of the key European loader crane business, while it pursues wider geographic expansion and diversification. The business is gaining ground in some of its sectors but still has a great deal of potential to significantly increase this as it works on the more sluggish divisions and builds on the acquisitions it has made.

It looks like the company will have another good year in 2014 and be well placed for even stronger growth in 2015.