PALFINGER AG: Excellent Performance Despite Economic Slow Down

PRESS RELEASE                         Bergheim, Austria on July 28, 2023

PALFINGER AG: Excellent Performance Despite Economic Slow Down
 

• Best first half year in the company's history with EUR 1,214.9 million in revenue, EBIT of EUR 111.3 million, and a consolidated net result of EUR 63.3 million
• Economic development slow due to high interest rates and inflation
• Record revenues of EUR 2.4 billion and record EBIT of EUR 200 million targeted for the full fiscal year 2023

 

in EUR million	H1/2021	H1/2022	H1/2023	%
Revenue	884.1	1,039.0	1,214.9	+16.9%
EBITDA	133.5	119.5	157.9	+32.1%
EBIT	92.1	80.2	111.3	+38.7%
EBIT margin in %	10.4	7.7	9.2	-
Consolidated net result	56.1	39.2	63.3	+61.5%
Employees1)	11,653	12,135	12,565	-

1) Reporting date figures of consolidated Group companies without equity investments and without contract workers.

Despite persistently high interest rates, continued high inflation and uncertain geopolitical developments in the EMEA region, PALFINGER AG enters the second half of 2023 with a record revenue and result. The best first half of the year in the company's history was achieved with a revenue of EUR 1,214.9 million, an EBIT of EUR 111.3 million and a consolidated net result of EUR 63.3 million. The full effectiveness of the implemented price increases, a good product mix, and the decline in raw material and freight prices contributed significantly to the outstanding first half year, as did improvements in the supply chains.

North America as PALFINGER's biggest growth market
The ongoing high number of orders received for service cranes and the enormous demand for the truck-mounted forklifts (TMF) continue to ensure growth in the North American (NAM) region. Capacities are being expanded to fully utilize the growth potential of the TMF product line. Starting in September 2023, Steyr Automotive will take over assembly of truck-mounted forklifts for the North American market. By 2027,1,700 truck-mounted forklifts are to be manufactured there annually. This cooperation not only secures the necessary capacities for the NAM region, but also further extends the PALFINGER production network. In order to further expand its existing presence in NAM, PALFINGER opened its new regional headquarters in Schaumburg, Illinois (near Chicago) in the first half of 2023.

Unique employee training
With the opening of the state-of-the-art training and education center for apprentices and employees (PALFINGER Campus), PALFINGER is investing in the development of skilled specialists. Starting in September, PALFINGER Campus will provide training for more than 140 apprentices in 18 different technical and commercial professions. The newly opened PALFINGER World offers an extensive brand and product experience on over 1,600 m².

Positive development thanks to strong order book
As a result of general market developments in the EMEA region, there was a significant decline in incoming orders - particularly from the construction industry. However, output was stable thanks to the high order backlog. The costs of raw materials and freight went down in the first half of the year. In addition, the supply chain continued to normalize in the first half of 2023. However, difficult truck availability and limited installation capacities for dealers led to high levels of inventory of finished products.

Outlook
Geopolitical and macroeconomic developments remain a major uncertainty factor. In addition, orders received in the EMEA region are expected to be significantly lower than in the previous year, because the construction industry is declining due to pressure from rising interest rates. However, PALFINGER has a good order backlog until the end of 2023.
PALFINGER remains committed to its ambitious financial targets. For fiscal year 2023, the aim is to reach revenues of EUR 2.4 billion and an EBIT of EUR 200 million. PALFINGER is targeting a revenue of EUR 3 billion, a ROCE of 12% and an EBIT margin of 10 percent for 2027.


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ABOUT PALFINGER AG
PALFINGER is an international technology and mechanical engineering company and the world's leading producer and provider of innovative crane and lifting solutions. With over 12,500 employees (without contingent workers), more than 30 manufacturing sites and a worldwide sales and service network of around 5,000 service points, PALFINGER creates added value from the challenges of its customers. PALFINGER is consistently continuing on its course as a provider of innovative, complete solutions that deliver increased efficiency and better operability, while leveraging the potential of digitalization along the entire production and value chain.

PALFINGER AG has been listed on the Vienna stock exchange since 1999, and in 2022 achieved record revenue of EUR 2.23 billion.


For further information please contact:  
Hannes Roither | Group spokesperson | PALFINGER AG  
T +43 662 2281-81100 | h.roither@palfinger.com 

Texts and accompanying images are available in the “News” section of www.palfinger.ag, www.palfinger.com.