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PALFINGER Announces Half-Year Net Result in 2021

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Published Aug 3, 2021 12:03 PM by The Maritime Executive

[By: PALFINGER]

The worldwide economic upswing following pandemic year 2020 had a significantly positive impact on the revenue and results of PALFINGER AG in the 1st half of 2021. Revenue in the first six months rose by 21.1 percent to EUR 884.1 million. Despite the cyberattack in January, EBIT increased by 137.8 percent to EUR 92.1 million and net debt/EBITDA is now at 1.63, the lowest level since 2007. The results of both the 2nd quarter and the first half of 2021 represent new records in the history of PALFINGER.

Challenges and Solutions
The cyberattack caused a two-week interruption to operations, the consequences of which were compensated for to a large extent over the past few months. Faced with rising raw material prices, PALFINGER adjusted its market prices. “Demand for our products nevertheless remains high,” says PALFINGER CEO Andreas Klauser. “To counter global material bottlenecks, multiple sourcing, proactive warehousing and strategic partnerships with long-term supply contracts are proving to be the best instruments.”

Growth in all Product Areas
PALFINGER is benefiting from the high worldwide demand, a result of the economic growth in the important markets China (+8.7 percent), USA (+6.7 percent) and EU (+5.2 percent). The main drivers of PALFINGER’s success are the construction and timber industries. PALFINGER is posting good in all product areas and regions. PALFINGER Marine secured major orders for equipping British and French offshore wind farms. In the USA, PALFINGER won an order for supplying 150 Truck Mounted Forklifts (TMF).

Key Financials
Revenue of PALFINGER AG amounted to EUR 884.1 million in the first half of 2021 compared with EUR 729.8 million for the same period in the previous year. This represents an increase of EUR 154.3 million, or 21.1 percent.
EBITDA increased by 57.2 percent compared with the first half of 2020, to EUR 133.5 million. The operating result (EBIT) rose from EUR 38.7 million at the end of the 1st HY 2020 to EUR 92.1 million, and the consolidated net result was EUR 56.1 million after EUR 15.1 million as of June 30, 2020. The sustained optimization of working capital management resulted in a substantial reduction of net debt to EUR 386.1 million.

The equity ratio of 39.3 percent (38.8 percent in the corresponding period in 2020) and the net debt/EBITDA ratio of 1.63 percent (2.62 in the previous half year) are evidence of the stability and strength of PALFINGER’s balance sheet structure.

Outlook
In 2021, investments will reach historic levels of over EUR 100 million in order to secure the capacities necessary for continued growth. Additionally, PALFINGER acquires the Group headquarters in Bergheim. “Our order books ensure good visibility and strong utilization for the rest of the year,” says Andreas Klauser.
For the full fiscal year 2021, revenues in excess of EUR 1.75 billion and an EBIT of more than EUR 150 million are targeted. The mid-term financial targets – EUR 2.0 billion revenue through organic growth, 10 percent average EBIT margin and 10 percent average ROCE over the economic cycle – should be reached by 2024 at the latest.

The products and services herein described in this press release are not endorsed by The Maritime Executive.