27.04.2016

Strong start for Palfinger

Palfinger has reported a strong start to the year, with higher revenues and a substantial lift in profitability.

Revenues increased over nine percent to €318.8 million thanks to a strong pick up with both loader cranes and access platform sales in Europe and improvements in the USA, offset by a steep fall in revenues from South America. Pre-tax profits increased almost 30 percent to €27.1 million, thanks to better production capacity utilisation and higher revenues.

In the European region loader crane sales were very strong with solid growth in Sweden, Finland, Ireland, the Czech Republic, Poland, Germany, France, Belgium and Austria as well as Australia (shipments from Europe). In contrast, revenue declined in South Africa, Denmark and Norway. Italy and Spain also bounced back with revenues up by nearly 70 percent.

Access platform sales and new orders increased significantly, with higher, steady production utilisation helping generate a “high level of profitability”.

In North America revenues were of 6.4 percent higher, thanks to tail lifts, timber and recycling cranes. Orders for these products as well as loader cranes and aerial work platforms are at a high level, boding well for the full year. Russia was flat in local currency terms, but substantially lower when converted to Euros. South America fell over 38 percent, mainly due to Brazil, while the Asia Pacific region was helped by the Sany partnership, but looks to be slowing for the full year.

Chief executive Herbert Ortner said: “We have managed to continue our growth. The primary reason for the increase in revenue and earnings was that demand in Europe remained strong. Given the present situation, we think chances are good that our growth will continue over the rest of the year.”

Vertikal Comment

Another strong quarter from Palfinger which is doing most things right at the moment, while it has some challenges to face, it looks as though 2016 will be another record year in terms of results. With plenty of opportunities remaining to exploit, the future looks bright.