The first quarter was already strong; the second has produced the best results in our history. In the first half year we already achieved better consolidated earnings than last year’s result. The first half year of 2021 is thus the next chapter of a success story which continues unabated despite challenges like the cyberattack, rising raw material prices, and a material shortage.
At EUR 884.1 million, consolidated revenue in the first half year was 21.1 percent higher than in the same period of the previous year (EUR 729.8 million). At the same time, operating earnings (EBIT) increased from EUR 38.7 million in the first half year of 2020 to EUR 92.1 million. The EBIT margin was 10.4 percent (HY1 2020: 5.3 percent) and the consolidated net result of EUR 56.1 million is significantly higher than the same period last year (EUR 15.1 million). The PALFINGER share is also fully on course. It has already risen more than 40 percent since the beginning of the year.
Flexibility is the trump card
The break in production caused by the cyberattack was largely compensated for with a special shift system. We minimized the effects of the worldwide material bottleneck with multiple sourcing, proactive warehousing, and strategic partnerships with long-term supply contracts. At the same time, the prices of raw materials went up, forcing us to adjust end prices accordingly; but this in no way impacted demand – on the contrary.
Success in all areas
The global economic upswing, dominated chiefly by China with economic growth of 8.7 percent, the USA with 6.7 percent, and the EU with 5.2 percent, is having a positive effect on all our product areas and regions. This is shown most clearly by our growth in the construction and forestry industries. PALFINGER Marine has secured two major orders that augur well for the future, for equipping British and French offshore wind farms. In the USA, we won a tender to supply 150 new Truck Mounted Forklifts (TMF).
There are good reasons why PALFINGER is able to exploit the upswing so successfully. The GPO and a range of other restructuring measures meant that we were ideally placed to kick on immediately after the crisis. With our biggest ever investment package of over EUR 100 million for the expansion and upgrade of our sites we are creating the capacities necessary for further growth. Additionally, PALFINGER acquires the Group headquarters in Bergheim. We are also driving our digitalization strategy forward. This includes digitalization of our core processes as well as developing new fields of business, new business models, and – through P21st, our innovation incubator – new technologies.
Now for it!
There will be no shortage of challenges in the coming months. But we are ready for them. Our order books guarantee work at full capacity until the end of the year. And there is no sign of the upswing ending. Now we want to beat 2019’s record result with annual revenue in excess of EUR 1.75 billion and an EBIT of more than EUR 150 million. Together we are shaping the future.