Palfinger sees revenue drop

“This downturn is related to a decline in revenue in forestry business in Russia and Europe,” the manufacturer said.

Earnings before interest and taxes (EBIT) amounted to €31.4m (26.5% below the prior-year level), while consolidated net profit was €15.5m (down 26.7%).

In its financial report, the company said that it responded to the Covid-19 crisis “rapidly and comprehensively”.  Its existing liquidity reserves were significantly expanded with additional lines of credit. “Furthermore, all projects were carefully reviewed and a programme for integral liquidity optimization and structural cost reduction put in place to address the crisis and cushion its effects. Retroactively effective from March 23, 2020, personnel costs for employees in Austria were substantially reduced by the short-time work model. Palfinger is also making use of the various models and support programmes for sites in other countries,” the manufacturer said. It added that it currently has efficient credit lines to deal with potential future needs.

As to the outlook for the rest of 2020, the company said: “Considering the current developments that are having a significant impact on the market, the supply chain, and in the company’s plants, we expect greater cutbacks in demand and production in the first half of 2020 and for the year as a whole. The usage of the short-time work has been maximized. Visibility on the markets remains low and requires ongoing reassessment of the current situation. Capacities have been adjusted in order to protect employees’ health and comply with standards put in place by national authorities as well as in expectation of lower market demand.

“The company’s domestic sites in Austria and international sites in Italy, France, and Russia were partially closed for production in April. This time was used to implement extensive hygiene and health care measures in the offices and production areas in preparation for gradual ramping up of operations in late April. On a positive note, Palfinger continues to benefit from any upcoming business opportunities like two substantial orders worth €13m in India and Thailand in April.”