07.11.2022

Strong third quarter for Alimak

Swedish international mastclimber and hoist manufacturer Alimak has reported a strong third quarter.

In the first nine months the company reported sales revenues of SK3.4 billion ($317 million) split over four divisions, Construction, Façade, Industrial and Wind.

Construction sales: SK960 million ($87.6 million) +17.7%. Operating profit: SK170 million ($15.5 million) +17.4%
Façade sales: SK929 million ($84.8 million ) +26.5% Operating profit more than quadrupled to SK23 ($2.1 million)
Industrial sales: SK807 million ($73.7 million) +31.6% Operating profit: SK148 million ($13.5 million) +11.4%
Wind sales: SK413 million ($37.7 million) -23%. Operating profit: SK57 million ($5.2 million) +2%
Order intake for the nine months was SK3.39 billion, ($309.5 million) up 18.5 percent on last year.
Pre-tax profits for the nine months improved 9.5 percent to SK316 million ($28.8 million)

Third quarter revenues for the group as a whole were 21.3 percent higher at SK1.09 billion, ($99.5 million) with a pre-tax profit of SK98 million ($8.9 million) down by just under three percent on last year. Order intake for the three months improved 24.6 percent to SK1.08 ($98.6 million)

Chief executive Ole Kristian Jødahl said: "During the quarter we signed and closed the acquisition of Tall Crane Equipment and signed the acquisition of Tractel. The acquisition of Tractel is truly transformational and creates a highly profitable global provider of safe and sustainable premium height solutions with an annual revenue of more than SEK 6 billion ($550 million).”

"We continue to face supply chain challenges in components which our employees have continued to manage in a good way. We have continued to mitigate the effects of high-cost inflation through active price management, with several price increases made during the year and good cost control. The entire organisation has worked diligently to manage the current challenges, in close dialogue with our customers, suppliers and partners. Cash flow improved in the quarter, compared to the first six months of the year, as a result of increased cash collection, and we will continue to have focus on the working capital.”

"Construction delivered solid order intake in the quarter, driven by stronger equipment sales, mainly in the US and in Southeast Asia. Tall Crane Equipment, which was consolidated into Alimak in August, reflects our strategic goal of being close to our customers in the markets they operate. Tall Crane´s rental services business provides a good foundation to expand Alimak Group’s new and used product offerings, establishing a wholly owned footprint in Canada.”

"Industrial continued to deliver strong order intake growth, an increase of 12% organically, with solid service sales in the quarter. Order intake was strong in APAC and in Americas and with stable development in Europe. Our investments in our sales organisation and in the development of our customer and segment focused solutions are clearly having an effect. We also see further opportunities to penetrate.”

"Facade Access reported continued strong organic order intake, an with increased sales in APAC and in Europe for mid to high complexity solutions. We see increased activity also in the US. During the quarter, profitability was still impacted by high inflation. Our efforts to improve profitability in the division continues.”

"Wind reported a decrease in order intake of 24% organically, the market continues to be challenging, especially in China. During the quarter, we saw increased investment activity in the US with improved order intake for ladder system. Although the Wind industry still faces short term challenges, the long-term prospects are attractive, driven by the need for increased investments in renewable energy.”

Vertikal Comment

Alimak is getting its act together and gaining some real momentum. The Tractel acquisition is an interesting one, it can add significantly to the business, bringing in several new market areas. However, there is also quite a lot of overlap with its existing products and operations so strategy choices will be critical, or it will be a classic case of 2+2 = 3.

One thing is certain is that this is a very positive set of numbers, which bodes well for an excellent full year result and a strong position for 2023.