PALFINGER’s focus in the first half of 2019 was on profitable growth

• Double-digit increases in revenue and EBIT, EBIT margin improved to 9.3 per cent

• New organizational structure successfully implemented

• Restructuring in marine business largely completed

• Record revenue and earnings expected for 2019

1) Since 2018, balance-sheet date figures of consolidated Group companies have been presented excluding equity shareholdings and excluding contract workers; the previous years’ figures are average figures.

Bergheim, 30 July 2019

The PALFINGER Group continued its growth in the first half of 2019: Double-digit increases in revenue and earnings were achieved. The restructuring in the marine business was largely completed by the end of the first half of 2019, and new growth initiatives have produced first successes. All in all, PALFINGER is well on the way to meeting its growth and profitability targets.

As at the beginning of 2019, PALFINGER implemented a new organizational structure. The GLOBAL PALFINGER ORGANIZATION (GPO) consolidates global structures and promotes cooperation across corporate units. This makes it possible to unlock synergies and implement efficiency enhancements.

“To put it in a nutshell, our report on the first half of 2019 is highly positive,” says Andreas Klauser, CEO of PALFINGER AG. “In the LAND units, incoming orders were at a good level and our production facilities worked at full capacity utilization. Our new GPO structure is becoming well established. It helps us to act quickly and efficiently. This is already noticeable in our results. In the segment SEA, we were able to largely complete the restructuring process. At the same time, the market started to recover and we have been generating more and more orders. We will intensify the integration of this segment into the GPO structure”.

Key financials

The PALFINGER Group’s revenue rose by 11.4 per cent from EUR 801.9 million in the first half of 2018 to EUR 893.4 million in the reporting period, reaching yet another record level for a first-half reporting period.

EBITDA grew at the excellent rate of 17.0 per cent, rising from EUR 102.7 million to EUR 120.1 million. This significant improvement reflects the positive business performance, but is also due to the change in lease accounting requirements (IFRS 16 Leases). The EBITDA margin came to 13.4 per cent, as compared to 12.8 per cent in the previous year. EBIT grew by 17.2 per cent from EUR 71.0 million to EUR 83.3 million in the first half of 2019, resulting in an EBIT margin of 9.3 per cent, which is higher than the previous year’s figure of 8.9 per cent.

Performance over the individual quarters of the first half of 2019 shows the further increase in revenue (Q1: EUR 440.9 million; Q2: EUR 452.5 million) achieved by PALFINGER. EBITDA (Q1: EUR 61.2 million; Q2: EUR 58.9 million) and EBIT (Q1: EUR 42.7 million; Q2: EUR 40.6 million) were slightly lower in the second quarter due to a different mix of products and regions.

The consolidated net result showed a year-on-year increase of 23.7 per cent from EUR 35.2 million to EUR 43.6 million. Earnings per share increased from EUR 0.94 in the first half of 2018 to EUR 1.16 in the reporting period. Despite the changes in accounting pursuant to IFRS 16, the balance sheet as at 30 June 2019 showed improvement: The equity ratio rose from 34.6 per cent to 35.8 per cent and the gearing ratio decreased from 97.8 per cent to 96.7 per cent as at 30 June 2019.

Other events

In February, PALFINGER 21st implemented its first new business model through the foundation of the joint venture Palfinger Structural Inspection GmbH, referred to as STRUCINSPECT. This company revolutionizes the inspection of structures through the use of new technologies, data and artificial intelligence. First reference projects have already been launched.

In June, PALFINGER and the Chinese lifeboat manufacturer Neptune agreed on a joint venture. This cooperation in sales and service of rescue equipment will open up new opportunities for PALFINGER, primarily in Asia and in China’s dynamic cruise ship market.

Outlook

The outlook for 2019 as a whole remains positive. On the basis of current market trends PALFINGER expects another record year: The management reckons with an increase in revenue to EUR 1.7 billion and an EBIT margin of 9 per cent. For the years to come, PALFINGER sees continued growth potential, also in new products and new business models.