In International Shipping News 04/05/2015
The first quarter of 2015 was highly satisfying for the PALFINGER Group: Revenue was stepped up by 10.7 per cent to EUR 292.3 million, EBIT increased by 15.5 per cent to EUR 23.6 million, the EBIT margin once again exceeded the eight per cent mark, and the consolidated net result rose by 21.4 per cent to EUR 14.5 million.
“This development confirms the consistent implementation of our strategy to expand PALFINGER’s global business operations by establishing local value creation in the individual regions,” points out Herbert Ortner, CEO of PALFINGER AG, when asked about the key factor of PALFINGER’s success and goes on to explain: “We have scored our market success in part under adverse economic circumstances. We owe our increase in earnings first and foremost to our flexibility and to the permanent optimization of our costs.”
| EUR million | Q1 2015 | % | Q1 2014 | Q1 2013 |
| Revenue | 292.3 | + 10.7 % | 264.0 | 225.8 |
| EBIT | 23.6 | + 15.5 % | 20.4 | 18.1 |
| EBIT margin | 8.1 % | - | 7.7 % | 8.0 % |
| Consolidated net result | 14.5 | + 21.4 % | 12.0 | 11.0 |
* The figures for the first quarter of 2014 were adjusted with retrospective effect. For details, see the notes to the Interim Report for the First Quarter published by PALFINGER AG.
The primary reasons for the positive development of revenue, which was higher than in any previous quarter, included the relatively stable business in Europe and rising demand in North America, Russia/CIS as well as in Asia, mainly in China. Revenue declined only in South America, where, however, PALFINGER still managed to improve its competitive standing despite the sharply shrinking market. In the marine business, the effects of the low oil price had a noticeable impact on customers’ willingness to invest; nevertheless, PALFINGER continued its constant growth, achieving a 30 per cent increase in revenue.
The acquisition of Norwegian Deck Machinery AS (NDM) was closed in the first quarter of 2015, providing an expansion of PALFINGER’s marine product portfolio. In Russia, the two joint ventures agreed upon with the leading truck producer KAMAZ in 2014 were approved by the authorities, and operations commenced.
In the first quarter of 2015, the EUROPEAN UNITS segment increased its revenue by 4.6 per cent to EUR 200.7 million (Q1 2014: EUR 191.1 million). The segment saw a moderate increase in EBIT, which came to EUR 26.2 million (Q1 2014: EUR 26.0 million). The loader crane and hooklifts business recorded a modest rise in revenue, and the sales of EPSILON timber and recycling cranes as well as truck mounted forklifts were higher than in the same quarter of the previous year. The acquisition of Norwegian Deck Machinery contributed to the growing success of the marine business. The good capacity utilization at the production units resulted in a high level of profitability.
The revenue of the AREA UNITS segment expanded by a notable 27.1 per cent to EUR 91.6 million (Q1 2014: EUR 72.1 million). The segment’s EBIT, which was negative in the previous year due to bad weather, came to a clearly positive EUR 1.5 million. North America saw a significant rise in the sale of loader cranes, tail lifts and access platforms. In Russia/CIS, PALFINGER achieved increases in revenue despite the economic sanctions and the weak ruble; sales of locally produced products compensated for the lack of exports to this region. PM-Group Lifting Machines, which had been acquired in the fourth quarter of 2014, and INMAN were the main contributors to the growth achieved. The expansion of production capacities at INMAN to double their former size is almost completed and the new plant is scheduled to start operations in the second quarter. The two joint ventures with KAMAZ, for which official approval was granted in March 2015, will contribute to the intensification of local value creation. PALFINGER’s successful cooperation with SANY was a major factor in the good development of the Asia and Pacific market region. Sales of loader cranes in China increased. In South America, however, PALFINGER recorded declines in revenue resulting from shrinking markets, weak currencies and the lack of state funding. PALFINGER nevertheless succeeded in expanding its market shares.
Outlook: Record revenue expected in 2015
The volatile market environment in the 2014 financial year confirmed the effectiveness of the three strategic pillars of the PALFINGER Group: internationalization, innovation and flexibility. PALFINGER will therefore continue to pursue its long-term Group strategy of maintaining a leading position in the global market through its own efforts in order to generate sustainable, profitable growth in the future as well.
For 2015, PALFINGER has identified additional growth potential. The management therefore expects significant further increases in revenue in the 2015 financial year.
In 2012, PALFINGER set itself the goal of increasing cumulative annual revenue (including the joint venture companies) to approx. EUR 1.8 billion by 2017. The management plans to reach this mid-term revenue target chiefly through organic growth.
