04.11.2022

Palfinger maintains record trend

Palfinger published its third quarter results last week and remains on track for full year revenues of €2 billion, however profits and working capital continue to be affected by the current market challenges.

Total revenues for the nine months to the end of September were €1.58 billion, up 18 percent on the same period last year, with a strong performance for the Americas, while sales growth in Europe and Asia/Pacific softened. Pre-tax profits for the period were €105.1 million down five percent on last year, due to cost increases – including energy -and manufacturing inefficiencies due to supply chain problems.

In the third quarter sales were €540 million up 19 percent on last year, while pre-tax profits slipped around 10 percent to €30 million. Net debt increased again due to high inventory levels and ended the quarter at €629.8 million almost 50 percent higher than a year ago, although the trend has been rising all year.

The company says that it is on track for a record €2 billion year in terms of revenues, the current order book runs through into the third quarter of next year, with orders on what the company refers to as ‘Dynamic pricing’ which we assume means that the price can change retrospectively, depending on input costs.

Chief executive Andreas Klauser said: “The volatile and challenging environment demands maximum flexibility in production from us. However, the high order backlog and good level of output are offset by supply difficulties, particularly for electronic components. Together with the difficult delivery situation for trucks, this results in high inventory stocks in production and finished products. In addition, minimum inventories have also been increased in a targeted manner due to unstable supply chains. Price increases and exchange rate effects have a significant impact on Palfinger‘s 's revenue growth. In order to be able to present all cost factors transparently and promptly for us and our customers and to stabilise our own profitability, we are switching to dynamic pricing which will take effect from 2023.”

Vertikal Comment

This is another decent set of numbers from Palfinger given the manufacturing challenges manufacturers face at the moment. It continues to invest in its long term projects and looks set to exit this current period in pretty good shape. While it continues to make progress in the loader crane market it is also doing better with its transportable forklifts, tail lifts and hook loaders. As to its truck mounted lifts it still has a long way to go and is in the process of consolidating its two facilities into one at the Löbau plant.

In summary another record quarter with plenty of additional market to go after.