Palfinger Reports ‘Satisfactory’ Year Despite Tough Conditions

Strong crane business in Europe in the first half of 2008 and three acquisitions, which took effect in 2008, allowed the company to report a double-digit growth in revenue from $900.4 million in the 2007 financial year to more than $1 billion. EBIT decreased, which was a sign of the greater weight given to hydraulic systems due to the declining crane business and the acquisitions carried out; revenue was also brought down by the accounting rules applying to acquisitions, the necessary depreciation and impairment.

 
“2008 was not an easy year for Palfinger, but despite all the difficulties we have reason to be satisfied,” said CEO Herbert Ortner. “Our strong market position and the flexible structures that we established in previous years have supported us in this environment. They constitute enormous competitive advantages, especially in difficult times, and therefore the consolidation in our industry also opens up new opportunities. We achieved further growth in revenue, and our flexibility allowed us partly to absorb the drop in orders in 2008.”

The development of the overall economy will continue to have a significant influence on the company’s business performance in 2009. Palfinger said consumer reluctance to make investments was a factor, but government aid and economic support programs are expected to reinvigorate infrastructure investments. Management has chosen not to counteract utilization beyond capacity in the first months of 2009 in order to have sufficient flexibility in case of a recovery of the market. The final financial results will be published on Feb. 25, 2009.

In a Reuters interview, Palfinger CEO Herbert Ortner stated that the company expects a “dramatic slump” in its 2009 profits due to weaker demand. Ortner said in the interview that revenue should only decrease by a maximum of 20 percent because of recent acquisitions. The article stated that the company plans to make further acquisitions by the end of the year, particularly in Russia or North America.