02.11.2020

Recovery continues at Palfinger

Loader crane and aerial work platform manufacturer Palfinger has published is third quarter results which show the company continues to perform relatively well given the challenges of the pandemic.

Total revenues for the nine months to the end of September were just 15 percent lower than in the same period last year at €1.1 billion, thanks to a third quarter pick up in much of Europe, Russia, China and South America. Pre-tax profits dropped 45.4 percent to €58.5 million, while net debt was cut from €577 million to €459 million.

Chief Executive Andreas Klauser said: "Palfinger has handled the first phase of the crisis well and has demonstrated a high degree of stability. In this regard, I want to particularly acknowledge the achievements of our employees. Furthermore, we are pushing ahead the transformation process to continue our path of success in this changing market environment.”

“The measures taken to optimise liquidity, initiated back in March, are having a positive effect: net financial debt has reached €459 million, the lowest level since, January 2016, liquidity reserves were significantly increased and inventories as well as receivables optimised. Free cash flow increased from €56.1 million in the comparable period to €96.3 million. We work together with our customers and business partners to develop innovative solutions fast and flexible. Together we create values."

"We assume that the economic effects of the crisis will also dominate 2021 and are aiming for full year revenue of over €1.5 billion and an EBIT of €100 million.”

Vertikal Comment

This a relatively good result from Palfinger which has managed to hold up well in the circumstances. It now expects the full year to come in at around 10 to 14 percent below last year’s record revenues of €1.75 billion.

The company has not yet posted its full results for the quarter, but all in all it is encouraging to see activity beginning to improve on the second quarter. Hopefully the latest surge in Covid-19 cases and lock downs will not last too long or have to big an impact on the economy.

One positive thing is that a lot of companies are reducing their debt and improving their sustainability, hopefully not at the expense of suppliers and partners.