25.01.2007

Palfinger reveals record 2006 figures

Leading loader crane producer Palfinger has announced record revenues and earnings in its preliminary results for 2006. Revenues are up 12.5 percent while earnings rose by 18.2 percent.

The company said that strong organic growth in its core cranes segment in Europe was the main contributor coupled with a 'favourable market environment'. However, bottlenecks in the production process prevented even higher growth.

Revenue was up by €65.1 million over 2005 or 12.5 percent, to €585.2million. Earnings Before Interest and Tax compared with the 2005 rose by €11.9million, or 18.2 percent to € 77.0 million, equivalent to an EBIT margin of 13.2 percent.

Palfinger says that market conditions that prevailed in 2006 are anticipated to continue in 2007. It says the company will focus on lowering supply times through capacity expansion.

Given the continued high levels of steel and energy prices, maintaining the balance between quality, costs, and delivery deadlines poses a major challenge.

Final results are published on 28th February 2007.

Vertikal Comment

Palfinger continues to propser and wring more revenues and profits from its loader crane business in Europe. With the market growing rapidly it has a good more potential in this maket.

Its main challenges will be to add more crane production, increase sales outside of Europe and most importantly stoke up its access and other segments.

The access business in particular will be a challenge. Its Bison products, while first class, are overly complex and expensive for many growth markets. The truck mounted platform business also tends to be very regional and niche, at least outside of North America.

The company needs to consider ways of going head to head with Italian producers for Southern Europe, the Middle East and South America and then look at the North American boom truck and platform business.

Perhaps the time is right for a North American acquisition?