Palfinger results show strengthening global foundations

6 March 2012

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End of year results for material handling equipment manufacturer Palfinger show a continued strong recovery since its 2009 losses, with net profits, up 73% on 2010 to €42m.

Revenues at Palfinger improved for the second year running, up 29.7% from €652m to €846m, the highest recorded revenues for Palfinger in the company’s history. Total equity in the company steadily increased by a further 10.3%, to €353m, on 2010’s 9.5% increase to €320m.

Recovering from a €30m, or 23%, slump in working capital in the fiscal year 2010, net working capital at the firm for 2011 bounced back 30.5% with a €31m improvement.

Attributing the positive results to an increase in demand across all product divisions and areas, along with higher capacity utilisation and productivity gains across the organization, Palfinger CEO Herbert Ortner was pleased with the firm’s performance.

He said: “We look back on an outstanding year. After having increased revenue by approximately 30 per cent in 2010 compared to 2009, we achieved another 30 per cent rise in 2011. We thus clearly outperformed our industry and posted the highest revenue in the history of our Company.”

Another factor recognised for the company’s performance is its rapid expansion over the last few years. Throughout 2011 Palfinger continued to invest in equipment, along with its property portfolio, to the tune of €19m, up 27.7% on the previous year, with the company’s total assets growing in value 9.2% to €740m.

In previous years the firm has invested significantly in generating new revenue streams. In Europe, Palfinger reintegrated Palfinger Systems in to the company and purchased a large stake in Ned-Deck Marine to exploit the marine segment of the market.

In the US it expanded its dealer network and entered the service truck market. Also, in the larger emerging markets Palfinger has made acquisitions, such as the purchase of lifting and loading systems manufacturer INMAN In Russia, as part of a wider strategy of expansion in the region.

Palfinger’s business area outside of Europe, including the Asia-Pacific region, India, the CIS and the Americas, generated 26.5% of the Palfinger Group’s revenues.

This year, it has announced a joint venture with Sany that will see the firm act as a dealer for the Chinese manufacturers mobile crane products while tapping into what it believes is becoming a lucrative market for loader cranes.

Ortner added: “The internationalisation achieved in recent years has not only contributed to this growth but has made it possible in the first place. In the second half of the year, which was ill-omened due to the global financial policy debate, we observed greater restraint in Europe, while the regions outside Europe continued to show positive performance.”

Despite cash flows from operating activities falling 23.3% from €49m to €38m, free cash flows have increased significantly by €7.5m, showing the company to be in increasingly good form for future investments.

This is in spite of a reduced rate of borrowing, with net debts only increasing €5.9m (3.7%) compared to a €9.1m (6%) increase in 2010. The company’s gearing ratio also fell during 2011 from 50.3% to 47.3%.

Palfinger said it observed a “distinct recovery” in its crane business during 2011, with its Hookloaders business unit achieving turnaround. However for 2012 the company intends to continue developing its investments in emerging markets, expecting this to shield it somewhat from negative economic developments in Europe.