Palfinger results on the boil

Loader crane manufacturer Palfinger has achieved a record first quarter in 2008, despite signs that the global market is cooling, it says.

Sales revenue at the Palfinger Group rose by 28.7%, from €162.4 million (US$252.8 million) in the first quarter of 2007 to €208.9 million (US$325.1 million). Earnings before interest and tax (EBIT) rose to €29.6 million (US$46 million) and exceeded the previous year’s figure by 23.7%, reported the company.

The EBIT margin amounted to 14.2% compared to 14.8% in the first quarter of the previous year. About two thirds of the revenue gain was due to organic growth, explained Palfinger, while some €16 million (US$24.9 million) was generated by the acquisition of MBB, which took place at the end of 2007.

“Our record revenues and earnings underscore Palfinger’s strong market position as reflected by our crane business in Europe and the high capacity utilisation in production. Currently the economic environment is very mixed, which is to say that some of our markets are declining while other markets, especially Eastern Europe, South America, and Asia, show great potential. All in all we are still satisfied with the demand situation even though the economic climate is no longer as overheated as in previous quarters,” said Wolfgang Anzengruber, Palfinger CEO.

At the beginning of 2008 Palfinger adjusted most of its sales prices to meet rising material prices. Given the high number of orders on hand this increase in prices will, however, have a delayed impact on results, said the company.

“At present management expects an increase in revenues of around 15% for the total year 2008. Approximately half of this growth is to be generated organically and the other half as a result of the acquisition of the [tail lift manufacturer] MBB Group.”