25.02.2009

Palfinger looking to grow

Austrian based crane and access company, Palfinger has released its annual report today which confirms its trading statement, with revenues up 14.3 percent to €795 million, largely due to acquisitions.

Its detailed breakdown shows crane sales were down just 1.8 percent year on year at €501 million, while revenues at its Hydraulic division, largely made up of tail lifts and truck mounted work platforms, climbed almost 60 percent -due to the acquisition of MBB tail lifts and Wumag truck mounted lifts.

Pre-tax profits for the year declined almost 38 percent to €63.9 million, due to lower margins in the acquired businesses, a hard fourth quarter and higher debt costs related to the acquisitions.

The crane business saw operating profits drop 17 percent to €83 million while Hydraulic services went from a small profit in 2007 to a loss of €16.8 million in 2008.

The company made a small loss in its fourth quarter, the first since it became a publicly quoted company.

In spite of the fall in profits Palfinger points out that the result was still the third best in its history. The company say that it is preparing to raise fresh debt to thought a €50 million bond, in order to secure its long-term financing and enable further acquisitions.

The company has also recently acquired a 40 percent stake in the Romanian chrome plated component supplier Nimet, which currently obtains 25 percent of its revenues from Palfinger.

Chief executive Herbert Ortner said: “We cannot withdraw from our economic environment, but our strength is shown in the numerous opportunities that we see and are also able to make use of. Apart from adjusting structures and processes to future market trends, we are clearly committed to the objective of gaining further market shares and actively participating in the consolidation process of our industry”

Vertikal Comment

Palfinger is in excellent shape to benefit from the current recession, it is closely held with around 60 percent of the shares in family hands, and is due to make a number of productivity gains in its tail lift business as it consolidates the acquisitions it has made.

It also has an aggressive market led attitude which could help it at a time when some more accounting led companies focus mainly on cutting costs equally across all areas as they focus on the short term.

2009 will be a tough year for the company, that is certain, but expect it to a still turn a profit and that it will be the first into and out of the starting blocks once the global economy picks up.