10.05.2006

Palfinger first quarter up 15%

Palfinger has reported first quarter sales up by 15 percent to €140 million, compared to the same period last year. Earnings Before Interest and Tax only improved marginally, rising by 2.5 percent to €17.5 million or 12.5 percent of sales.

One of the reasons for slower profitability growth is increased capital investment, during the period of €3.7 million, which pushed depreciation costs up. EBTIDA growth was slightly better at over five percent.

The ongoing strong profitability continues to be attributed to the crane business in Europe and high utilization of its manufacturing capacity. “We are expecting profitable growth and record revenue for 2006” said Wolfgang Anzengruber, CEO of Palfinger.

While Europe remains continues to be the driving force behind Palfinger’s positive performance, it also made strong gains in where revenue increased by 17.4 percent to €14.6 million.

Vertikal Comment

Palfinger, already very profitable, appears to be finding it hard to keep profits growing in line with its revenues. Some of this is down the fact that its crane plants are working at or near capacity and some of its other product lines are performing less well. It is investing heavily in its Bison truck mounted aerial lift range, and might start to see some payback for its efforts later in the year.