08.11.2007

Palfinger up 15%

Palfinger has published its results for the first nine months of 2007, revenues increased by 15.4 percent to €504.6 million while operating income (EBIT) increased 23.8 percent to €73.3 million and net profits rose by 27 percent to €53 million.

The company's European crane business once again led the strong performance, although Palfinger continues to experience capacity constaints.

It claims that the capacity issues have contributed to higher material and other costs involved with working at maximum capacity.

In 2006 Palfinger began a major investment programme (€80 million) in an effort to increase capacity and further improve efficiency and quality.

A further investment programme for 2008 to 2010 was approved in September in order to take into account growing market demand and reduce delivery times. The company expects to see a 20 percent increase in available capacity by year end.

Palfinger completed the takeover of Croatian supplier PiR metal and entered into a distribution joint venture agreement in India during the third quarter. More recently it acquired MBB tail lift, which is expected to increased the groups revenues by at least 10 percent.

Chief executive Wolfgang Anzengruber said: “Our markets have continued to grow strongly during the last nine months and still show sufficient potential. Significant improvements compared to 2006 have been achieved primarily in our main area of cranes but also in the services and railway sectors."

"We are particularly pleased with growth in the hydraulic systems. In the third quarter we have achieved sustainable turnaround in the Palift product division from the European market.”


Vertikal Comment

If Palfinger can add a 20 percent increase in capacity for 2008, it has the chance to firmly move ahead of its main rival in the loader crane market - Hiab.

It looks as though the company will achieve full year’s revenues in the region of €660 million this year, but could be set to grow this close to €800 million in 2008.

Palfinger has been used to leading the loader crane market in terms of product engineering, but has come under pressure lately both from Fassi, which has its sights on eventual market leadership and the resurgence of Hiab which has been investing heavily in product development.

The company launched its new Hi Performance series of cranes at the recent SAIE exhibition in Bologna - possibly a strategic choice in selecting Fassi's home market and to steal the limelight at its big show?

The Hi Performance cranes will soon be reaching end-users who will all too soon give their verdict on the refinements and improvements that Palfinger have introduced.

Based on recent performances you would be hard not to place your money on Palfinger succeeding and moving ahead of its nearest two rivals.

Time will tell - watch this space!