Palfinger Q1 performance boosts confidence for full year

Crane and lifting manufacturer 5050 Palfinger Group has reported a record increase for first quarter revenue, up by 9.1% to €318.8 million (Q1 2015: €292.3 million).

EBIT – earnings before interest and tax - also showed an “extraordinarily strong increase” of 28.6% from €23.5 million to €30.2 million, which is a new record as well.

“This generated a marked increase in the EBIT margin, which came to 9.5%, as compared to 8% in the first quarter of the previous year.”

“We have managed to continue our growth,” said Herbert Ortner, Palfinger chief executive. “The primary reason for the increase in revenue and earnings was that demand in Europe remained strong. Given the present situation, we think chances are good that our growth will continue over the rest of the year.”

Palfinger’s European units saw a year-on-year increase in revenue of nearly 13% from €200.7 million to €226.6 million. The segment’s EBIT for the first three months of 2016 grew by 29.9% per cent to €34 million, as compared to €26.2 million for the first quarter of 2015. As a consequence, the segment’s EBIT margin rose from 13.1% to 15%in the first quarter of 2016.

For loader cranes, sales and revenue increased in Europe in general with the exception of Denmark and Norway.  The development of demand in the southern countries of Europe, where markets had been weak since the financial crisis, was highly positive, according to Palfinger. In Italy and Spain, revenue rose by nearly 70%. In contrast, revenue declined in South Africa.

In South America, business volume in general contracted by around 38% due to the weak economy. Particularly in Brazil, were state funding was, for the most part, no longer available, massive declines in sales and revenue were recorded.

Performance of the Asia and Pacific market region was marked by a successful cooperation with Sany. “But even though business volume was expanded as compared to the same quarter of the previous year, the outlook for the months to come is subdued as economic growth has been slowing down.”