Further growth for Palfinger20 February 2019
Palfinger Group reported a record annual revenue of €1.62bn in 2018, 9.8% higher than the previous year.
The Land segment of the company, which includes the crane division, generated 86.6% of the group’s revenue. The segment’s revenue stood at €1.4bn, up 13.8% year-on-year.
The manufacturer said this organic growth was achieved primarily in Europe and North America, but business performance was also satisfactory in CIS and Asia.
Commenting specifically on the European sales performance of the Land segment, Palfinger said: “The European core markets continued to show tremendous construction activity in 2018, in both the private and the public sector. Northern and Central Europe are leading the field, but Southern Europe is showing a clear upward trend in construction as well.”
In North America, the existing product portfolio was fundamentally reviewed; non-profitable products and business divisions were phased out. The manufacturer said the first newly developed products were well received by the market. “The aim is to raise operating profitability towards 10% in the course of 2019, provided that demand remains strong.”
In South America, it continued to operate in a highly difficult market environment. “Even though the downturn appeared to have bottomed out at the end of 2017, demand continued to decline in 2018.”
“In Russia/CIS, the economic environment remained difficult due to the extension of the sanctions. Local value creation continued to prove highly advantageous, facilitating additional growth. In Asia, primarily in China, the Sany Palfinger joint venture recorded a significant increase in revenue during the reporting period. “