06.02.2015

Palfinger breaks a billion

Palfinger, the Austrian crane and aerial lift manufacturer has exceeded a billion Euros of revenue for the first time.

In 2014 the company achieved an 8.4 percent increase over 2013 with total revenues of €1.06 billion. Pre-tax profit for the period however fell over 10 percent to €54.6 million due to a reduction in order intake in its key European markets in mid-2014, declining sales in North America due to harsh weather during the first quarter 2014, and drops in demand and fluctuations in exchange rates in South America and Russia.

The European business unit continues to lead company growth, representing almost 68 percent of total revenues, however in terms of end sales Europe is now around 54 percent of the overall business, while North America is the next largest market for the company’s products at 21 percent. South and Central America was six percent, the Far East nine percent, CIS countries 5.6 percent and the Middle East 4.6 percent. Crane sales remain by far the most important part of the business in terms of revenues and profitability, being almost 62 percent of total revenues.

The company expects 2015 to be another year of stable growth, and anticipates breaking its 2014 record in terms of revenues, in spite of the shaky economic environment seen in the second half.

Chief executive Herbert Ortner said: “After the large number of acquisitions made in 2013, our priority in 2014 was on creating local value in Russia and China. In both market regions, production sites were either established or expanded, so that in the future local demand will almost entirely be covered by each country’s own production. We have thereby concluded a major step in our internationalization programme and are now in a position to focus on completing our product portfolio in every market region.”

Vertikal Comment

Another strong set of numbers from Palfinger which continues to make progress in its core European market, while building up its international penetration for the long term. While profits have fallen to levels not seen since 2011, the company is still satisfied with its margins and the overall progress of the business. The fact that the Palfinger family still holds almost 60 percent of the equity helps of course.

In the critical loader crane market the company is better placed than any of its rivals and we could well see it increase on its current 30 percent market share. At the same time it has some tremendous potential in developing business areas, such as the loader crane JV with Sany for the Chinese market and its Russian loader crane businesses, not to mention the massive potential it still has in North America.

Another solid result.