Need for impairment of Business Area Marine’s goodwill as of December 31, 2017 following an audit in accordance with the Accounting Control Act

The Austrian Financial Reporting Enforcement Panel (OePR) has completed its audit of the consolidated financial statement of PALFINGER AG as of December 31, 2017 and the half year financial statement of PALFINGER AG as of June, 30 2018 in accordance with the Austrian Accounting Control Act. PALFINGER AG expects the final audit report within the next weeks.

Based on today’s notification by the Panel (OePR), there is a need for a material impairment of the goodwill of the Cash Generating Unit (CGU) Business Area Marine as of December 31, 2017. The goodwill mainly results from the acquisition of Harding. The goodwill of the entire CGU Business Area Marine as of December 31, 2017 amounted to EUR 156.5 million. The Management Board estimates that the extent of the possible restatement could amount to approximately half of this goodwill.

Without the adjustment, Group-equity amounted to EUR 575.7 million and the equity ratio to 37.3% as of December 31, 2017.

PALFINGER AG will make the necessary corrections on the basis of the final audit report and publish it.

The correction to the 2017 financial statements will have no impact on the 2018 results, but will reduce the Group-equity and the equity ratio accordingly.


About PALFINGER AG

For many years PALFINGER has been one of the world’s leading manufacturers of innovative lifting solutions for use on commercial vehicles and in the maritime field. As a multinational group headquartered in Bergheim, Austria, the PALFINGER Group, which has approx. 10,212 employees, generated total revenue of approx. EUR 1,471.1 million in 2017.

The Group has manufacturing and assembly facilities in Europe, CIS, North and South America, as well as Asia. The pillars of its corporate strategy are innovation, further internationalization, enhanced flexibility of products, services and processes, and PALFINGER 21st (the development of smart solutions and innovative, data-based business models). PALFINGER is regarded not only as the market leader, but also the technology leader, in the global market for hydraulic loader cranes. PALFINGER is always in proximity to its customers due to its over 5,000 sales and service centres located in over 130 countries across all continents.

For further information please contact:
Hannes Roither, PALFINGER AG
Company Spokesperson
Phone +43 662 2281 81100 
h.roither@palfinger.com