30.07.2024

Sales and profits slip at Palfinger

Austrian crane and aerial lift manufacturer Palfinger has posted its half year results which show a dip in both revenues and profits.

Total revenues for the six months to the end of June were €1.17 billion, 3.5 percent lower than for the same period last year.
The growth came from Europe, North America and Asia Pacific partly offset by declines in South America and CIS countries – Palfinger still has a business in Russia, but it is run autonomously while it says all sanctions are adhered to.

Revenues by region
Europe - €695 million (-6.4%)
North America - €310 million +7%
South America - €51.1 million (-18%)
CIS – Russia - €60.2 million +4%
Asia Pacific - €56 million (-3%)

Pre-tax profit dropped six percent to €90.5 million, while net debt at the end of June was €763.3 million, up 5.6 percent on this time last year.

Second quarter revenues were €596.9 million a fall of 4.2 percent, while pre-tax profit slipped 14.3 percent to €45.7 million.

Chief executive Andreas Klauser said: "Palfinger began preparing early for significantly more volatile conditions in the long term. The product mix and global positioning, which proved to be a key resilience factor in the first half of 2024, played an important role. The markets for access platforms as well as offshore and marine cranes remained stable. In the Europe Mid East and Africa region, order intake remains at a low level, particularly in the core European markets of Germany, France and Scandinavia. Southern Europe, thanks to strong tourism and infrastructure projects, continues to show a positive trend, especially Spain, Portugal, Italy and Greece.”

Outlook

“The challenges of the first half of the year will continue to dominate the second half. Accordingly, the focus will be on customer order acquisition, while reducing high finished goods inventory levels. The current developments in the European core markets suggest that recovery may not occur until sometime in 2025.”

“North America saw strong demand for service cranes and truck mounted forklifts, while the ongoing good economic situation and infrastructure investments are ensuring a positive market environment. Profitability in the region also increased significantly.”

“In Asia Pacific strong demand for loader cranes in the emerging Indian market, showed good growth from a low level, although there is still no recovery to be seen in China. In South America a positive trend can be seen, mostly driven by Brazil, its largest economy.”

“The Marine Division recorded a significant increase in growth and profitability caused by additional service business and orders for offshore and marine cranes.”

Vertikal Comment

An interesting set of numbers, while Palfinger has been, perhaps over reliant on European marker, North America is now really gaining some momentum. While the European is certainly slower, it is surprising to see how quickly and hard it has bitten Palfinger. Cargotec – Hiab – reports in mid-August and it will be interesting to compare the two.