24.02.2010

Palfinger confirms numbers

Crane and access manufacturer Palfinger has released its full years results for 2009. Group revenues were confirmed at €505.4 million, down 36 percent on 2008. The company made a pre-tax loss of €11.8 million compared to a profit of €63.9 million in 2008.

Cranes represented 54 percent of the group revenues for the year after sales fell 46 percent to €273 million – like for like revenues- excluding Omaha Standard were 52 percent. In spite of the drastic fall the division remained profitable with an operating income of €3.66 million compared to €87.7 million in 2008.

The Hydraulic Services division which includes Palfinger Access, saw revenues decline 21 percent to €233 million. Like for like declines – excluding Wumag which was acquired in mid 2008, the decline was 33 percent. The division posted an operating loss of €2.4 million, an improvement on 2008, which it lost €11.6 million.

The group reduced net debt by nine percent to €167 million.

Palfinger says that while 2010 is uncertain its outlook is cautiously optimistic and estimates that revenues will improve by more than 10 percent.

Chief executive Herbert Ortner said: “The global economic slowdown was clearly reflected in the group’s business development. Compared to the results achieved in previous years, we posted a massive decline in revenues and earnings even though the extent of the decline was held in check by the acquisitions made in the past two years. Nevertheless, we are pleased with the results achieved for 2009 as our early adjustment of structures enabled us to achieve a significant improvement of earnings from quarter to quarter in 2009 despite ongoing declines in revenues.”

“On top of this, we were able to seize market opportunities and consolidate and expand our position in the market”

Vertikal Comment

Palfinger is doing better than most in what is a tough market while this years result is negative the company has continued to cut costs and restructure its tail lift and aerial lift businesses which is reflected in the reduced loss this year.

As the economy begins to improve Palfinger is likely to benefit more than any other manufacturer, particularly in the loader crane market and possibly in the access division where the streamlining and restructuring efforts should result in a lower cost base which with make it more competitive, at least in larger truck mounts.

The more than 50 percent fall in the loader crane market has caused most manufacturers to take drastic steps in terms of restructuring while slashing investment in marketing and product development. Palfinger on the other hand has taken a long term view and continued to invest. Something made easier by its relatively low gearing and closely held family ownership.

The Palfinger management team rarely ‘miss a trick’ and is as canny as any we follow, barring a further economic crisis expect the company to do even better that its optimistic forecasts suggest for 2010.