27.07.2017

Record sales for Palfinger

Crane and access manufacturer Palfinger has reported a record first half, but second quarter profits slipped back.

Total revenues for the first six months were €753.8 million, 13 percent up on the same period last year, thanks to a strong improvement in European crane sales and a major boost tin the marine division from the acquisition of Harding. Pre-tax profits also improved just over one percent to €59.9 million, held back by higher finance costs and restructuring charges, particularly in North America.

In the second quarter sales improved 13 percent to €391.9 million, while pre-tax profits slipped almost five percent to €30.3 million, due to higher funding costs related to acquisitions and restructuring charges.

Chief executive Herbert Ortner said: “We are continuing to grow, our flexibility enables us to utilise market opportunities that present themselves to varying degrees in the different regions across the globe. In addition, we have already met our profitability target for 2017, which is to achieve two-digit EBITn margin. We are optimistic that due to the continuously high number of incoming orders we will again achieve record revenue for the 2017 financial year. Our ongoing restructuring efforts are expected to have a positive impact on earnings on a long-term basis.”

Vertikal Comment

This is another excellent result in terms of revenues, although the company is struggling to maintain the same pace with profitability. However the underlying trend is positive and the company should see some bottom line imrovements in the second half and next year.

Palfinger says that its Chinese joint ventures with Sany have seen solid revenue growth, although it is fair to say that they have not been as successful as the company might have hoped. Its Russian investments though might have performed a little better, in spite of the challenging economic situation there.

All in all the company continues to make good progress and should end the year on a high with a positive outlook for 2018.