PALFINGER AG: Good results in the first three quarters of 2024

PRESS RELEASE                        Bergheim, Austria. October 28, 2024

PALFINGER AG: Good results in the first three quarters of 2024 
 

• Revenue: EUR 1,745.0 million, EBIT: EUR 158.7 million – EBIT margin of 9.1 percent
• Order intake remains low in core markets
• Positive developments in Latin America, Asia and Marine sector

1) Reporting date figures of consolidated Group companies are indicated without equity investments and without contract workers.

PALFINGER AG recorded a revenue of EUR 1,745.0 million, an operating result (EBIT) of EUR 158.7 million and a consolidated net result of EUR 90.8 million in the first three quarters of 2024. Despite a slight decline in revenue, PALFINGER achieved a good result.

Core markets weaker, growth in Marine sector, APAC and LATAM
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.

Product launches
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+.

Economic environment requires capacity adjustments
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.

Outlook
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.

For the full year (FY) 2024, we expect a good result despite challenging market conditions. Compared to 2023 (revenue: EUR 2.45 billion) revenue is expected to decline by approximately 5%, while EBIT is forecasted to be over 10% lower than record year 2023 (EUR 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: EUR 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.


You can find the results presentation for Q1-Q3/2024 here:
https://www.palfinger.ag/en/investors/publications/presentations

Here you can find the key figures for Q1-Q3/2024:
https://www.palfinger.ag/en/investors/publications/press-releases

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ABOUT PALFINGER AG
PALFINGER is an international technology and mechanical engineering company and the world’s leading producer and provider of innovative crane and lifting solutions. With around 12,540 employees (without contract workers), 31 manufacturing sites and a worldwide sales and service network of around 5,000 service points, PALFINGER creates added value from the challenges of its customers. PALFINGER is consistently continuing on its course as a provider of innovative, complete solutions that deliver increased efficiency and better operability, while leveraging the potential of digitalization along the entire production and value chain.
PALFINGER AG has been listed on the Vienna stock exchange since 1999, and in 2023 achieved record revenue of EUR 2.45 billion.
For further information please contact:
Hannes Roither | Group Spokesperson | PALFINGER AG
T +43 662 2281-81100 | h.roither@palfinger.com

Texts and accompanying images are available in the “News” section of www.palfinger.ag, www.palfinger.com.