30.04.2015

Palfinger continues upwards

Crane and access manufacturer Palfinger has reported a strong start to the year with revenues up by more than 10 percent as its non-European business moved into profit.

Total revenues were €292.3 million, 10.7 percent up on the same quarter last year, pre-tax profits for the period improved almost 23 percent to €21.1 million.

The loader crane business saw a modest rise in revenue, driven by strong growth in Denmark, Sweden, the UK, the Netherlands, the Czech Republic and Poland, as well as in Africa and Australia. In contrast, revenue declined in Germany, Belgium and France and to other regions. Most other segments saw flat revenues or modest growth.

The European business improved almost five percent to €200.6 million, although operating profits were flat at €26.2 million. Sales to the rest of the world jumped 27 percent to €91.6 million, while this part of the business finally moved into the black achieving a profit of €1.48 million, compared to a loss in the same quarter last year of €900,000. The company says that Russia saw modest growth in spite of sanctions and economic challenges, while North America improved, as did its joint venture with Sany in Asia, while South America slumped.

Chief executive Herbert Ortner said: “This development confirms the consistent implementation of our strategy to expand Palfinger’s global business operations by establishing local value creation in the individual regions. We have scored our market success in part under adverse economic circumstances. We owe our increase in earnings first and foremost to our flexibility and to the permanent optimisation of our costs.”

Vertikal Comment

Sadly detailed information on crane and platform sales is not provided, especially on a quarterly basis, however it seems that the company is "on a bit of a roll", or as its annual report says, “we call it a tailwind”. While it is clear that its loader crane business goes from strength to strength, the situation in its Platforms business is much less transparent. The division does now have a new chief executive and has launched some excellent new products, so by rights it ought to be seeing a healthy bottom line.

In spite of uncertainty in some of its growth markets , it almost certain that the company will post another record year in 2015, and be well placed for several years of further growth towards its €2 billion revenue target. A very positive result in an uncertain economic times.