Palfinger reports good results in the first three quarters of 2024

Palfinger AG recorded a revenue of €1745 million, an operating result (EBIT) of €158.7 million and a consolidated net result of €90.8 million in the first three quarters of 2024.

The company reported that, the European core markets, especially Germany, are stagnating, while the upcoming US election is slowing down the demand in North America (NAM).

Palfinger recorded strong growth in the Asia-Pacific region (APAC) driven by high demand especially in India, while China remained flat. In the Latin America region (LATAM), Brazil and Argentina are on course for growth. The marine sector benefited from offshore crane orders as well as from growing service business, which boosted revenue and profitability.

Reduced inventories of finished goods in the third quarter are reflected in working capital.

“Our geographical and product diversification has been a decisive resilience factor in the first three quarters. Given the volatile economic situation, we are actively tackling the challenges, increasing the attractiveness of our portfolio, intensifying customer proximity in growth regions and implementing cost-cutting measures,” said Andreas Klauser, CEO of Palfinger AG.

In September, Palfinger presented its newest products and digital innovations at the leading European marine trade show “SMM” in Hamburg and “IAA Transportation 2024” in Hanover. Major launches were a marine crane for heavy loads, the new truck mounted forklift (FLS), a new series of loader cranes, access platforms and hook lifts as well as Palfinger Connected plus+.

Production capacity in EMEA was proactively reduced due to the persistently low order intake in the European core markets. Increased demand in Brazil and Argentina, on the other hand, led to an increase in capacity in LATAM. A new supplier structure in Mexico will be established to optimize costs and prepare for further growth in NAM.

Palfinger expects the continuation of the positive performance in APAC and LATAM regions and as well as in the marine sector. Currently there is no significant improvement in the economic environment in the European core markets visible, so production capacities in EMEA will be further adjusted in the fourth quarter of 2024.
North America is also experiencing lower demand due to the upcoming presidential election.

The company expects a a good result for the full year despite challenging market conditions. Compared to 2023 (revenue: €2.45 billion) revenue is expected to decline by approximately 5%, while EBIT is forecasted to be over 10% lower than record year 2023 (€210.2 million). Due to a significant reduction of working capital, a clearly positive free cashflow is expected.

Despite the challenges, the Executive Board is committed to its ambitious financial targets for 2027:€3.0 billion in revenue, an EBIT margin of 10%, and a ROCE of 12%. However, achieving the revenue target is becoming increasingly challenging due to the difficult market conditions.