30.10.2017

Another record for Palfinger

Palfinger has posted a new nine month revenue record at the third quarter stage.

Revenues in the nine months to the end of September increased 9.7 percent to €1.09 billion. Sales were higher in both the Land and Sea divisions. Pre-tax profits for the period were 3.5 percent higher at €79.6 million.

The Land business, which largely comprise cranes and aerial lifts, saw revenues rise by 5.5 percent to €908.8 million, thanks to an improving market in Europe, Russia and Asia. While the ongoing restructuring of the North American operations - including the sale of the service body business –continued to depress revenues, at the same time as incurring restructuring costs. Conversely the acquisition of the Danish distribution business helped the European results.
The Land division made an operating profit of €114.6 million up 12.5 percent on last year.

The ‘Sea’ or marine business boosted its revenue by 36 percent to €184.3 million, thanks mostly to the acquisition of Harding now making a contribution. Last year’s small profit was turned into a loss this year of €7.8 million, due to high integration and restructuring costs.

In the third quarter total group revenues were just under three percent higher at €339.4 million, while pre-tax profits improved 17 percent to €25 million. Net debt at the end of the period was one percent lower €525.9 million. Palfinger says that revenues at both is Russian and Chinese joint ventures showed promising growth, adding that its Chinese partner Sany had sold 25 percent of the shares it held in Palfinger, disposing of 900,000 shares at a price of €37 per share, reducing its stake in the Austrian company from 10 to 7.5 percent.

Chief executive Herbert Ortner said: “We are still using the potential of the market very well, our flexibility allows us to translate our good capacity utilisation into an increase in operating profitability. The restructuring in North America and in the marine business is also starting to take effect. Given the continuing high level of our incoming orders, we are confident that we will yet again post record revenue and record earnings for 2017 as a whole.”

Vertikal Comment

This looks like a good result from Palfinger, first because it has achieved record revenues, at a time when it faces challenges in the Americas, and secondly in the last quarter pre-tax profits outpaced revenue growth rather than lagging it.

At the same time the company has improved its gearing, in spite of having absorbed some sizeable acquisitions in the past 15 months or so. Although the marine division may have experienced more revenue cannibalisation or fall out than might have been hoped for?

All in all though as god result from Palfinger