07.02.2017

10% gain for Palfinger

Palfinger has reported its full year results with revenues up more than 10 percent, but flat profits and a steep rise in debt.

Total revenues for the year were €1.36 billion up by 10.3 percent on 2015, with largely organic growth in the crane and access markets and a steep rise in the marine business thanks to acquisitions topping off organic growth. Pre-tax profits improved roughly half a percent to €93.2 million, held back by restructuring costs in the North America crane and access business and in its marine operations. Net debt at the end of the year was €513 million, up from €348 million last year thanks to a number of factors including acquisitions such as its Spanish distribution network and Harding marine business in June.

In the fourth quarter sales of cranes, lifting and access equipment – the Land segment – improved around three percent to €292.7 million with flat operating profits. While loader crane sales in the Europe, Africa Middle East market remain by far and away the profit and cash generator for the group the access and other lifting equipment divisions in Europe all posted positive results.

Chief executive Herbert Ortner said: “Our successes are the result of the consistent implementation of our business strategy, which has put us in an excellent competitive position. In 2016, we placed a major focus on the expansion of the marine business, to make it the second strong pillar of the group. Another priority was the increase in operating profitability, which we facilitated by comprehensive restructuring measures in North America and in the marine business. We stand well prepared for the developments that can be expected on the global markets, and we will continue to pursue growth to the best of our ability.”

Vertikal Comment

While Palfinger once again posted record revenues, the result was somewhat lacklustre. However a great deal of progress was made towards transforming the group ready for some significant expansion over the next few years. The company desperately needed to pull its North American operations together and meld them into a business of the quality and coherence of its European business. The additions to its marine business also makes this division a better, more independent business with some real potential.

The company has much to do and a lot on its plate, hopefully 2017 will see it properly consolidate its past and most recent acquisitions, reduce gearing a little and position itself for more profitable growth in 2018.