05.08.2009

Palfinger slips 36%

Palfinger the Austrian based crane and access manufacturer has reported first half revenues of €269.2 million a drop of 36 percent on the same period last year.

Wumag and Omaha Standard, which joined the group in the second half of 2008, added €45 million in revenue, without which the decline in revenues would have been almost 50 percent.

The company posted a half year pre-tax loss of €8.5 million compared to a profit of €59.2 million in the same period last year.

The second quarter showed further revenue declines, although the losses eased and the company says that it sees the first signs the market bottoming out. Revenues were €128.8 million, down 40 percent on the same quarter last year, while the company recorded a pre-tax loss of €3.8 million compared to a profit of €29.7 million for the second quarter 2008.

Looking at the two main business sectors – Cranes and hydraulic services (access and tail lifts) – Crane sales were down by 50 percent for the half year at €145.9 million – a comparison without Standard Omaha shows a 57 percent drop in ‘like for like’ revenues.
Operating income for the sector show a loss of €892,000 compared to a profit of €63.7 million last year.

Hydraulic Services held up better, thanks to the Wumag acquisition, with sales down just under seven percent to €123.3 million, while the division posted a loss of €1.8 million compared to a loss of €121,000 last year.

Palfinger says that it expects the third quarter to be slow, with some signs of improvement although with holiday shuts downs it will be quiet, it is though cautiously more optimistic about the fourth quarter.

Herbert Ortner, chief executive said: “The developments of recent months have shown clear signs of bottoming out in the markets that are of relevance to us. Order intake in the US and Asia is even slightly on the rise again. The implementation of the infrastructure projects announced and/or agreed upon all over the world will also generate a clear impetus. As an early-cycle company we are cautious but nevertheless optimistic for the upcoming quarters”,

Vertikal Comment

Palfinger has been hit hard by the downturn in the loader crane market, but has over the past 12 months take some key steps that should see it come out of the recession well ahead of where it was. The Omaha Standard deal, while not earth shattering should take its North American business to a new level.

Similarly it is now a major player in the truck mounted lift market having come from nowhere six years when it showed off its first effort at building a lift. It has the marketing skills and the brand name to develop a worldwide market coverage for these products, unlike some of its Teutonic competitors who have struggled to move far from their home market.

The recession is also giving Palfinger the time to integrate is recent acquisitions and streamline them far more easily than if it had been racing along at the top of the market. All things considered this period will prove to have been a useful consolidation phase for the company which will benefit it in the years to come.