Palfinger share is still growing strongly: Palfinger suffers a slump in profits | 04/29/22

The Salzburg-based lifting device manufacturer Palfinger lost profits in the first quarter of this year.

The consolidated result fell by 44.5 percent to 13.6 million euros, as the company announced on Friday morning. However, with growth of 19.6 percent to EUR 485.6 million, sales reached the highest value in a first quarter. However, rapidly increasing material costs and unstable supply chains are slowing down business.

The “continued positive market environment and the increasing order backlog are contrasted with the first effects of the war in the Ukraine, rapidly increasing material costs and unstable supply chains,” explained Palfinger. Despite the material, personnel and capacity bottlenecks, the group is keeping “output at a high level”. However, the problems in the supply chains have been exacerbated by the war in Ukraine. This leads to “inefficiencies and high inventories in the production and assembly plants”.

Palfinger “adjusted” its capacities in the second quarter due to increasing delivery delays for truck chassis and general material shortages. “We are proactively taking all measures to keep our delivery reliability at a high level in the coming difficult and unpredictable months and to cushion the negative effects as much as possible,” emphasized CEO Andreas Klauser in the press release.

In the first three months, earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 16.1 percent year-on-year to EUR 49.1 million, and the EBITA margin went from 14.4 to 10.1 percent noticeably back. The operating result (EBIT) deteriorated by 24 percent to EUR 30.4 million, the EBIT margin from 9.9 to 6.3 percent. In the meantime, the number of employees has increased significantly. Palfinger employed 12,049 people, compared to 10,905 in the prior-year period.

Management cut the outlook for the full fiscal year. Because despite the record order backlog, the visibility of sales and earnings for 2022 is limited. “The existing order book limits the Group’s flexibility to pass on cost increases to its customers at short notice,” admitted the Group’s management. “In view of the current framework conditions and the effects of the war in Ukraine, Palfinger has reduced its expectations for sales and earnings for 2022,” it said without giving any further figures.

However, the medium and long-term goals remain unchanged for the time being. In 2024, Palfinger aims to achieve sales of EUR 2.3 billion from organic growth, a ROCE (Return on Capital Employed) of 12 percent and an EBIT margin of 10 percent. In 2030, sales should exceed the 3 billion euro mark.

Palfinger shares initially fell in Vienna. Ultimately, however, it was able to turn into the profit zone and was 1.05 percent higher at EUR 24.00.

kre / tsk




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