Palfinger suffered a slump in profits in the first quarter

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”.

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.

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