12.04.2022

Record year for HMF

Danish loader crane manufacturer HMF has reported a record year in terms of revenues achieving sales of DKK 1.1 billion (€148 million) thanks to higher activity in most markets where it is represented. The company also converted last year’s loss of DKK 3.8 million (€511 million) into a profit of DKK 85 million (€11.4 million).
The year was eventful - in the seven months since the new chief executive Jens Seehusen took over the company has faced supply chain issues creating long delivery times and high price increases on both parts and truck chassis, as well as having a fire in one of the production buildings in October.

The company is optimistic for 2022, having started the year with a strong order book which has continued to grow during the first quarter. As a result, it is forecasting revenues of 1.1 to DKK1.2 billion (€148 to €161 million), in spite of the ongoing supply chain challenges and shortage of chassis.

Chief executive Jens Seehusen Christensen said: "The result is mainly due to a higher activity in our production and on the markets. Without skilled and hardworking employees and sales partners around the world, this would never have been possible. It just once again underlines that our employees are HMF's greatest asset."

"In many ways, we are facing a year of great unpredictability. What is happening in Ukraine? Will there be more Covid-19 waves? What will happen with the global supply chains? These are all things we take into account when forecasting and planning for the coming year. But we have some strong supply chains at HMF and no operations in either Russia nor Ukraine. What we do have however, is a continual increasing demand for HMF's truck cranes and a full order book well into 2022. That’s why we believe in a strong year."

Chief financial officer Klaus Skov Mortensen added: “After 2020 we were very uncertain about the future and therefore, we didn’t have great expectations for 2021. But fortunately, our worries were put to rest. First and foremost, Covid-19 has created a 'catch-up effect', where the lack of activity from 2020 is now materialising. In addition, private consumers have spent more time in their homes and gardens, and they’ve also had more money in their pockets. At the same time, many public infrastructure projects have been launched."
The company has also announced that it intends to sell its Højbjerg and Galten facilities and merge operations in to a brand new plant - 'a factory of the future' - which will include production and administration as well as service and vehicle body building activities.

Vertikal Comment

This is of course a good result from HMF, and a strong bounce back from a tough year. It looks as though 2022 will be better still, given what it has said about the order book and supply chain management. On this basis the forecast looks a little timid - what we used to call ‘sandbagging’ - but the potential impact of the war on Ukraine on the global economy cannot be overlooked.

All said and done it is good to see another positive set of numbers and an optimistic and confident long term outlook.