26.02.2021

Palfinger optimistic for 2021

Loader crane and aerial lift manufacturer Palfinger has published its results for 2020 which show that business continued to pick up in the fourth quarter, and is now forecasting year on year growth for the first quarter 2021.

Total revenues for 2020 were 12.5 percent lower than in 2019 at €1.53 billion. Europe made up a marginally higher percentage of the total at 61.8 percent or €947.4 million, with North American revenues of €325 million accounting for 21.2 percent of the total. South American sales were €52.1 million, 3.4 percent of the total, with Russia and the CIS countries making up 6.3 percent at €96.6 million. Finally Asia Pacific outperformed the rest and now makes up 7.3 percent of total revenues at €111.9 million. Pre-tax profits came in 36.1 percent lower at €85.1 million, while net debt was cut by 25 percent to €377.1 million.

The company is forecasting revenues of €1.7 billion in 2021 almost the same as in 2019, which was a record year for the company. Looking further to the future it now expects to reach sales of €2 billion by 2024.

Chief executive Andreas Klauser said: "We were unable to escape the effects of the crisis through swift, targeted actions, we were able to actively counteract and further drive the ongoing transformation process. The planned reversal of the cross holding with Sany Heavy Industries increases Palfinger’s ability to generate additional financial resources for strategic acquisitions. Additionally, in 2021 we are investing more than €100 million in our future, primarily in modernisation and digitalisation. Moreover, further synergy potential within the Palfinger group will be leveraged through integration and system standardisation.”

Vertikal Comment

Palfinger has done well to come through such a tough year without revenues suffering too much, while maintaining a healthy profit, reducing net debt and investing in further development. If it achieves its forecast revenues for this year then it would have done exceptionally well. In fact it is entirely possible that it will exceeded its 2019 results, depending on how much impact the cyber attack on its major systems will have.