01.05.2018

Positive quarter for Palfinger

Loader crane and aerial lift manufacturer Palfinger has reported a strong first quarter for its loader crane business.

Total revenues were €394.2 million, up nine percent on the same period last year, almost entirely due to higher loader crane sales in Europe and North America. The group’s Land division which largely comprises loader cranes and aerial work platforms, improved 13.6 percent to €337.8 million with higher sales in Europe and North America partly offset by flat sales in South America with nothing much happening with its Sany joint venture in China or its operations in Russia.

In contrast the Sea division which includes a whole gamut of mostly acquired businesses that serve the marine and offshore oil & gas industries saw revenues shrink 12.7 percent to €56.4 million. Pre-tax profit for the period was two percent higher at €29.8 million.

The company is also restructuring its North American and Marine businesses, which had a negative impact on both revenues and profitability. The North American programme ought to be completed shortly.

Vertikal Comment

Palfinger appears to have lost its way somewhat with the rash of acquisitions it has made over the past few years, 24 of them over seven years. Its core business of loader cranes and European core market - 60 percent of sales - continue to flourish but are offset by the poor performances from most of the non core acquisitions and joint ventures.

The point of the acquisitions was to spread the group’s geographic coverage and diversify from its crane business. There is an argument though that this is all a distraction, even though it is in part related to its material handling business which could be argued is its real core. One thing is for sure Palfinger is closely held and tends to focus on the long-term so will probably eventually come good. It will be interesting to see what new chief executive Andreas Klauser makes of it all.

All said and done this remains a positive set of numbers overall.