22.01.2009

Palfinger revenues up 14%

Palfinger has published its preliminary results for the full year 2008, revenues increased by 14 percent to €795 million, thanks to strong crane sales in Europe during the first half along with acquisitions made during the year.

The poor fourth quarter and the larger volume of lower margin products such as tail lifts and work platforms brought about by its three acquisitions, resulted in a 31 percent fall in Earnings Before Interest and Tax from €99.6 million to €69 million.

The company’s result was also affected by the implementation of new accounting rules applying to acquisitions. The company is proposing a dividend of €0.39 per share compared to €0.70 in 2007.

Palfinger says that the economy will continue to have a significant negative influence on the group’s business in 2009, given customers’ reluctance to invest. However it says that it expects government aid and economic support programmes to reinvigorate infrastructure spending.

The company says that while it has cut temporary workers, laid others off and introduced short time working, it has deliberately chosen not to cut into permanent capacity in order to have sufficient flexibility in case the market bounces back in the second half.

The company is also looking for further savings in fixed costs and process improvements, while reducing capital employed. It also believes that it will be able to profit from its strong market position and exploit opportunities that arise.

Chief executive Herbert Ortner said: “2008 was not an easy year for Palfinger but despite all the difficulties we have reason to be satisfied. Our strong market position and the flexible structures that we established in previous years have supported us in this environment.”

“In 2008 Palfinger concluded a comprehensive three year investment programme making specific capacity expansion investments and carrying out process optimisation and quality enhancement. The Company’s plant in Shenzhen, China, for example, was expanded from a pure assembly site into a production location.”

“In addition, three acquisitions supported the Group’s growth: MBB tail lifts, Wumag Elevant aerial lifts and the US company Omaha Standard, helped to complete the Group’s product portfolio and extend its sales and service network.”