10.05.2013

Palfinger posts modest increase

Crane and access manufacturer Palfinger has posted a modest improvement for the first quarter, compared to last year’s record numbers, while profits rose faster.

Total revenues were up just under one percent at €225.8 million, while pre-tax profits increased six percent to €14.7 million. Some of the growth in revenues and profit came from the Dreggen marine business acquired late last year. We estimate that it would have contributed around seven or eight million euros or so.

Geographically Europe was flat with growth on Germany and Northern Europe offset by further declines in Southern Europe as well as France and Austria. South America was also flat, while North America improved slightly and Asia grew significantly, but from a very low level. Russia and the CIS countries however posted very strong gains.

In numbers the company’s European entities were up just under one percent to €153.1 million while the rest of the world grew by just under two percent to €72.66 million.

In terms of product sectors the loader crane business continues to lead the way assisted this quarter by a solid pick-up in sales of truck mounted forklifts. Access platforms and tail-lifts saw modest declines, while sales of timber handling cranes fell by over 10 percent.

The company is positive for 2013 and expects revenues and profits to come in at slightly higher levels than 2012. It is confident enough though to say that it expects to double its revenues by 2017.

Chief executive Herbert Ortner said: “We are more than satisfied, first of all because we have managed to continue growth, and secondly because this confirms the success of our strategy. Without our consistent internationalisation outside Europe and without the new Marine business area, our business performance would not be this good.”


Vertikal Comment

One has to remember that these numbers are compared to a record quarter in 2012 and so are still pretty good by anyone’s measure- even though without its acquisitions we would be looking at a decline. However all divisions made a positive bottom line contribution and profits grew significantly faster than revenues.

The company has great hopes for its Chinese based joint venture with Sany which is already made its first sales and is beginning to gather pace. Palfinger is a well-run business with tremendous potential. Assuming that Sany does not let it down in China, the company has a very good chance indeed of doubling revenues over the next five years as it is forecasting.