Strong half year for Palfinger
By Alex Dahm28 July 2017
In the first half of 2017 Palfinger group increased its revenue by 13.2 per cent to €753.8 million from €665.6 million in the same period a year earlier. It was a new record for half year results at the company.
Much of the success was attributed to good performance in Europe, Russia and China, plus acquisitions made by the Group since 2016. Palfinger splits into two groups: the Land segment and the Sea segment. The former includes hydraulic loader cranes and growth was 6.3 % to €624.6 million. In the sea segment which includes offshore cranes, revenue was up 65.2 % to €129.2 million, from €78.2 million in 2016. Acquisition of the Harding Group was the primary reason for the increase.
Commenting on the figures, Herbert Ortner, Palfinger CEO, said, “We are continuing to grow. Our flexibility enables us to utilise market opportunities that present themselves to varying degrees in the different regions across the globe. In addition, we have already met our profitability target for 2017, which is to achieve two-digit EBITn margin. We are optimistic that due to the continuously high number of incoming orders we will again achieve record revenue for the 2017 financial year. Our ongoing restructuring efforts are expected to have a positive impact on earnings on a long-term basis.”
According to Palfinger the economic recovery in Europe is still being felt in the EMEA region. Particularly in construction and infrastructure. The company benefited from equipment replacement, which had been suspended in recent years.
A challenging environment prevailed in the Sea segment’s first half of the year,because of the oil and gas industry situation. Following massive declines in 2016, Palfinger almost maintained the same revenue.
In outlook Palfinger forecasts that the overall business performance will continue to be satisfactory throughout the rest of the financial year and that Palfinger will grow again. “From today’s point of view, new record levels seem realistic. Palfinger’s target for 2017, which was met in the first half of the year, is to achieve a two-digit EBITn margin,” the company said.