PALFINGER news

PALFINGER POSTED RECORD REVENUE AND SUBSTANTIAL GROWTH IN EARNINGS IN THE FIRST THREE QUARTERS OF 2017

27.10.2017
  • Revenue rose by 9.7 per cent to EUR 1,093.1 million
  • EBITDAn increased by 12.6 per cent to EUR 147.6 million; EBITDAn margin: 13.5 per cent
  • Consistently high level of incoming orders gives reason to expect record revenue and record earnings once again for 2017

 

  Q1-Q3 2015       Q1-Q3 2016          Q1-Q3 2017              % 
 Revenue (EUR million)  898.9 996.6 1,093.1 +9.7%
 EBITDAn1) (EUR million) 114.3 131.1 147.6 +12.6%
 EBITDAn margin1) in % 12.7% 13.2% 13.5%
 EBITn1) (EUR million) 84.0 96.9 105.3 +8.7%
 EBITn margin1) in % 9.3% 9.7% 9.6% -
 EBIT (EUR million) 77.3 86.4 91.9 +6.4%
 Consolidated net result for the period (EUR million)              48.1 49.7 50.5 +1.5%
 Human resources2) 8,765 9,144 9,732 +6.4%

 

1) Figures were normalized (n) by restructuring costs.
2) On average; consolidated group companies excluding equity shareholdings, as well as excluding temporary workers.

 

Bergheim, 27 October 2017

 

In the first three quarters of 2017, the PALFINGER Group continued to post strong growth. The positive trend thus remained unbroken in the third quarter, although the global environment was still heterogeneous. The main reasons for the significant expansion of business were the good performance in Europe, Russia and China, as well as the acquisitions and changes in the scope of consolidation made by the Group since 2016. As expected, the ongoing restructuring in North America and in the marine business had a detrimental effect on earnings. 

The PALFINGER Group’s revenue rose by 9.7 per cent to EUR 1,093.1 million, setting a new record for the reporting period. Operating profitability rose even more significantly: At EUR 147.6 million, EBITDAn was 12.6 per cent higher than in the previous year, resulting in an EBITDAn margin of 13.5 per cent. 

We are still using the potential of the market very well,” explains PALFINGER AG’s CEO Herbert Ortner, commenting on the reasons for the Group’s ongoing growth. “Our flexibility allows us to translate our good capacity utilization into an increase in operating profitability. The restructuring in North America and in the marine business is also starting to take effect. Given the continuing high level of our incoming orders, we are confident that we will yet again post record revenue and record earnings for 2017 as a whole. 

In the reporting period, restructuring costs came to EUR 13.5 million (Q1–Q3 2016: EUR 10.6 million). EBIT (operating result) thus increased by 6.4 per cent year on year from EUR 86.4 million to EUR 91.9 million. In the first three quarters of 2017, the consolidated net result was EUR 50.5 million, 1.5 per cent higher than the previous year’s figure of EUR 49.7 million. Earnings per share amounted to EUR 1.34, as compared to EUR 1.33 in the same period of the previous year. 

 

LAND segment In the first three quarters of 2017, revenue in the LAND segment increased by 5.5 per cent year on year from EUR 861.2 million to EUR 908.8 million. The segment’s normalized EBITDA (EBITDAn) grew by a substantial 13.9 per cent from EUR 135.0 million to EUR 153.8 million. The EBITDAn margin of the LAND segment thus rose from 15.7 per cent to 16.9 per cent in the first three quarters of 2017. The restructuring costs allocated to this segment amounted to EUR 8.9 million in the reporting period, as compared to EUR 5.7 million in the first three quarters of 2016.

This growth was based on the expansion of business in the regions EMEA, CIS and Asia. In Europe, economic recovery in the fields of construction and infrastructure continued to be noticeable, and the acquisition of the Danish distribution partner Palfinger Danmark AS generated positive momentum as well. The restructuring in North America brought substantial success. In South America, PALFINGER continued to operate in a highly difficult market environment, but it appears that the downturn has bottomed out. In Asia, particularly in China, the partnership with SANY has proved to be the foundation for the sound development of business; the revenue generated by the joint venture increased considerably in the reporting period. In Russia/CIS, local value creation facilitated additional growth despite the challenging economic environment.  

 

SEA segment In the first three quarters of 2017, the SEA segment’s revenue increased to EUR 184.3 million, corresponding to a year-on-year increase of 36.1 per cent. The contribution of the segment to PALFINGER’s consolidated revenue thus rose from 13.6 per cent to 16.9 per cent, reflecting the acquisition of the Harding Group at the end of June 2016. Harding contributed EUR 77.3 million to revenue in the reporting period. However, the segment’s normalized EBITDA (EBITDAn) declined from EUR 7.6 million in the first three quarters of 2016 to EUR 5.8 million. The EBITDAn margin came to 3.1 per cent, as compared to 5.6 per cent in the first three quarters of 2016. The restructuring costs incurred by this segment increased from the previous year’s figure of EUR 3.1 million to EUR 4.1 million.   

The business environment of the SEA segment remained highly challenging as a result of the strained situation of the oil and gas industry. In the reporting period, the level of incoming orders increased in some areas, pointing to a stabilization of the market situation. 

 

Outlook
The high level of incoming orders gives reason to expect that in the fourth quarter of 2017 overall business performance will continue to be satisfactory, despite regional variations. On this basis, PALFINGER’s management expects 2017 to be another record year and is also optimistic for 2018.


ABOUT PALFINGER AG

The international mechanical engineering firm of PALFINGER is the world’s leading producer of innovative crane and lifting solutions. With around 12,000 employees, 34 manufacturing sites and a worldwide network of dealerships and service centers at over 5,000 locations, PALFINGER takes on its customers’ challenges and creates added value. PALFINGER is consistently continuing on its course as a provider of innovative, complete solutions that deliver increased efficiency and better operability, while leveraging the potential of digitization along the entire production and value chain.

PALFINGER AG has been listed on the Vienna stock exchange since 1999 and in 2021 achieved record revenue of EUR 1.84 billion. In 2022, PALFINGER celebrates its 90th anniversary under the tagline “Celebrating the future since 1932.”

 

For further information please contact:

Hannes Roither | Group Spokesperson | PALFINGER AG
T +43 662 2281-81100 | h.roither@palfinger.com

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