EQS-News: PALFINGER AG: All-time high half-year revenue despite major challenges

EQS-News: Palfinger AG / Key word(s): Half Year Results
PALFINGER AG: All-time high half-year revenue despite major challenges

29.07.2022 / 07:00
The issuer is solely responsible for the content of this announcement.

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PRESS RELEASE Bergheim, Austria, July 29, 2022

All-time high half-year revenue despite major challenges
 

• Record order backlog in a volatile environment
• Unstable supply chain, high stock levels, and rising material costs
mark the 1st half year
• Revenue of EUR 2 billion targeted for 2022

 

in EUR million 1^st HY/2020 1^st HY/2021 1^st HY/2022 %
Revenue 729.8 884.1 1,039.0 +17.5%
EBITDA 84.9 133.5 119.5 -10.5%
EBITDA margin in % 11.6 15.1  11.5 –
EBIT 38.7 92.1 80.2 -12.9%
EBIT margin in % 5.3  10.4 7.7 –
Consolidated net result 15.1 55.7 39.2 -30.1%
Employees ^1) 11,078 11,653 12,135 –

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

The macroeconomic upheavals stressed global supply chains, rising energy
and material costs, and exchange rates leave their mark on the key figures
in the first half year. In this volatile environment, PALFINGER achieves a
record revenue of EUR 1,039.0 million and earnings before interest and
taxes of EUR 80.2 million.

Market Successes in LATAM and Marine
From the second quarter, the war in Ukraine slows market demand in EMEA.
But in the NAM region and especially in LATAM, PALFINGER benefits from
continued high demand. The company has also achieved market successes in
the Marine sector: A framework agreement with Aker BP for the maintenance
and delivery of remote-controlled offshore cranes has been concluded.

Dynamic Pricing
In view of the large order backlog and the deferred effectiveness of its
own price increases, PALFINGER is switching to “dynamic pricing” with
effect from January 2023. With the new, index-based and flexible pricing
model, PALFINGER can react quickly to rising or falling costs. “In this
way, we guarantee transparency, the immediate and direct transfer of
costs, and consequently stabilized profitability,” says PALFINGER CEO
Andreas Klauser, explaining the change.

Investments in the Future
As part of the investments in implementing the Strategy 2030, PALFINGER
opens its global technology center in Köstendorf. Here, control and drive
technologies are developed for all PALFINGER solutions worldwide at a
central location and in standardized forms. The acquisition of the 35
percent minority interest in the French Guima Palfinger S.A.S. and of the
40 percent minority interest in the Portuguese Comercio e Aluguer de
Maquinas, S.A. makes it possible to react even more quickly and
efficiently to competitor and market developments in the EMEA region.

Key Financials
Revenue of PALFINGER AG amounted to EUR 1,039.0 million in the first half
of 2022 against EUR 884.1 for the same period in the previous year. This
represents an increase of EUR 154.9 million or 17.5 percent and reflects
not only the high market demand for PALFINGER products, but also the
increased sales prices and exchange rate effects.
EBITDA fell by 10.5 percent compared to the 1st half year 2021 to EUR
119.5 million. Earnings before interest and taxes (EBIT) fell from EUR
92.1 million in the 1st half year 2021 to EUR 80.2 million due to cost
increases and the deferred effect of price increases. The consolidated net
result amounted to EUR 39.2 million as against EUR 55.7 million as of June
30, 2021.
The reversal of the cross-holding with SANY and the acquisition of
minority interests reduced equity and influence the balance sheet
structure accordingly. The high stock levels led to a sharp increase in
financing volume. That said, the financing structure, with an average
interest rate of 1.25%, is extremely attractive. The instability of the
supply chains led to a huge rise in inventory levels, resulting in
increased net debt of EUR 604.1 million compared to EUR 386.1 million in
the corresponding period of the previous year.

Outlook
PALFINGER’s large order backlog extends into the second quarter of 2023.
Further price increases will also take effect in the second half of this
year and from today’s perspective cost increases for components and
materials have peaked. Given the geopolitical situation, PALFINGER
nevertheless expects exceptionally high volatility until the end of fiscal
year 2022 and beyond. In this challenging environment, PALFINGER is aiming
for revenue of EUR 2 billion in 2022.
PALFINGER continues to pursue its mid- and long-term targets. Revenues of
EUR 2.3 billion from organic growth, ROCE of 12 percent and an EBIT margin
of 10 percent are targeted for 2024. Revenue is expected to hit the EUR
3.0 billion mark in 2030 at the latest.

The presentation on the first half of 2022 is available here:
https://www.palfinger.ag/en/investors/publications/presentations

The interim report of the first half year of 2022 is available here:
https://www.palfinger.ag/en/investors/publications/finance-publications

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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 12,000 employees, over 30 production
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
achieved record revenue of EUR 1.84 billion in 2021. In 2022 PALFINGER is
celebrating its 90th anniversary under the tagline “Celebrating the future
since 1932.”

Further inquiries:  
Hannes Roither | Group spokesperson | PALFINGER AG  
T +43 662 2281-81100 | [1]h.roither@palfinger.com 

Text and accompanying images are available in the “News” section of
[2] www.palfinger.ag, [3] www.palfinger.com.

 

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29.07.2022 This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: Palfinger AG
Lamprechtshausener Bundesstraße 8
5020 Salzburg
Austria
Phone: +43 (0)662/2281-81101
Fax: +43 (0)662/2281-81070
E-mail: ir@palfinger.com
Internet: www.palfinger.ag
ISIN: AT0000758305
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1407701

 
End of News EQS News Service

1407701  29.07.2022 

References

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