Palfinger Increases Third-Quarter Revenues

November 7, 2008 â€“ The Salzburg, Austria-based Palfinger Group recorded double-digit growth in revenue in the first three quarters 2008. However, growth rates no longer matched those achieved in previous periods. Revenue for the first three quarters 2008 showed an increase of 20.3 percent as compared to the previous yearâ€™s figure. EBIT for the past nine months amounted to a 2.3-percent increase.

â€œThe uncertain economic situation prevailing in many of our core markets is a great challenge for Palfinger especially because its ramifications cannot be predicted right now,â€ said CEO Herbert Ortner. â€œBut at the same time we also see numerous opportunities for the months to come and the year 2009. We are in an excellent position in terms of regions, products, and finances and enjoy the reputation of being a reliable business partner. This is a valuable guarantee for our customers. Our sound financial basis also allows us to actively participate in the consolidation process already underway. Consequently, in the past 12 months we have successfully concluded three major acquisitions which have contributed to our international growth and solidification of our market position.â€

The growth in revenues reflected the strong crane business in the first half 2008, which was to a large part due to the backlog of orders from the previous year and the inorganic growth achieved through acquisitions in the course of 2008.

The company said the noticeable decline in market demand and the current reduction of the order backlog made it possible to shorten delivery times significantly. Management still expects double-digit revenue growth throughout 2008 thanks primarily to acquisitions. In the crane business it is expected that the results will fall short of the ones for 2007.

The development of the Hydraulic Systems & Services segment should lead to positive earnings, even though from todayâ€™s point of view the companies that were initially consolidated in the second half will not make a positive contribution toward earnings. Moreover it has to be taken into account that this shift in the product mix has given more weight to hydraulic systems within the group, providing for lower margins in comparison with cranes.

Expectations still are for the consolidated EBIT margin to remain in the double-digit range. However, management assumes that the results of the Palfinger Group for 2008 will fall below those of the previous year.

For complete financial results, click here.