17.11.2003

Palfinger reports rise in revenues and profits

Palfinger, the Austrian based producer of truck loading and forestry cranes has announced a very strong set of results for the third quarter of 2003. They claimed that while the quarter overall was up, September in particular was very strong. Revenues for the nine months rose by 6.1 per cent to €246.8 (UK£170 million) from €232.7 (£160 million) reported in the same period of last year.

Earnings before interest and tax were up 3.8 per cent to €21.3 (£14.7 million), while EBITDA was up 2.3 per cent to €29.6 million (£20.4 million). Profit before tax was up 7.8 per cent to €20 million (£13.8 million).

Other positive highlights included a drop in gearing to a historical low of 31 per cent and this, in spite of a significant increase in spending on property, plant and equipment, mostly related to Palfinger's location optimization programme, which saw production being successfully transferred during the period from the Bergheim to Langau facility. The installation of a new cataphoresis coating system was also completed at Palfinger's Langau plant in Austria.

The Epsilon timber crane was quoted as being a “trendsetter” and doing very well. Benefits also flowed from ongoing restructuring of production, including the above mentioned plant relocation. Revenues and profits from the company’s service profit centres continued to grow and “the new demo and training centre in Bergheim will bring further impetus when it comes on line early in 2004”

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Palfinger recently completed the installation of its new KTL cataphoresis coating system at its Langau facility in Austria.

Negative points in the announcement were few but included
a 13 per cent drop in free cash flow compared to the corresponding period of 2002. This was largely due to the higher investment levels referred to earlier. In spite of this, however, €18.5 million (£12.8 million) of free cash flow was generated year- to-date.

Productivity and performance form the Guima plant remained below expectations, but Palfinger expects this to change in 2004.

Palfinger's distribution companies in Germany and the US continued to experience difficulties related to the economic slowdown, but “indications from North America are promising for the new year, while European recovery is still uncertain”.

Palfinger, whose IPO (Initial Public Offering) took place back in 1999, saw its share price close on Friday at 21.2, up by almost 35 per cent year-on-year, roughly matching the Austrian stock market indices.