28.11.2014

Tough first half for Liebherr

Liebherr has reported a 2.2 percent fall in first half group revenues although crane sales improved slightly.

Total group revenues for the six months were €4.3 billion, 2.2 percent down on the same period in 2013. This was largely due to sharply lower sales of mining equipment, with the construction and mining division's revenues falling 6.6 percent to €2.62 billion. Of this construction sales were flat but mining lower.

Mobile crane sales were slightly up on last year, although the company shipped roughly the same number of cranes, it expects to finish the year at or close to last year’s volume of 1,416 new cranes. Among the markets its serves it mentioned the UK and France as being particularly strong, with North America looking good, as is Chile and Mexico, but sales to Brazil and Russia fell back, as did Australia and South Africa. North Africa, the Middle East and Japan were all positive.

The company launched its single engine LTM1300-6.2 in China this week and seemed surprised to have booked its first Chinese order for one on Monday and had already booked at least one other larger crane by mid-week which bodes well for 2015 in China.

Sales of marine cranes increased more than 20 percent, while its other divisions were all roughly at the same levels as last year.

Vertikal Comment

Liebherr is like a bulldozer it pushes on through ‘thick and thin’ focusing on the long term and not reacting to short term market fluctuations. This is of course something it can do being a cash rich family owned company, while all of its competitors are publicly owned and monitored by shareholders every quarter.

The company now claims a 50 percent share of the All Terrain crane market, up from 45 percent over the past few years. This seems a little high, but Liebherr usually refers to markets where it competes, which to be fair is almost everywhere. It is certainly a tough competitor. But a market share this high can be difficult and costly to defend. But one thing is for certain it will have its eyes set on not only retaining its current market share, but on winning 55 percent.

To have held crane revenues at last year’s high numbers is quite an achievement.