Palfinger has announced that 2023 has been the most successful year in its history in terms of revenue and consolidated net results, with the company achieving a record revenue of EUR 2.45 billion, its highest ever operating result of EUR 210.2 million and a record consolidated net result of EUR 107.7 million.
Announcing the record year, a statement from Palfinger said that despite ongoing geopolitical upheavals, rising interest rates and inflation, the global technology and mechanical engineering company was able to achieved the record in an economic environment that it described as extremely challenging, particularly in Europe.
Palfinger ready for 2024 challenges
“At Palfinger, we know how to cope with volatile conditions. We have proved that in 2023 and we will also tackle the challenges in 2024, which are no less demanding” said Andreas Klauser, CEO of Palfinger AG.
Thanks to improved supply chains and increased delivery reliability, output was significantly increased, and production backlogs reduced in the first half of 2023, said the statement, adding that starting in September 2023, weakening demand in EMEA and LATAM had an impact on production, which meant that capacities had to be adjusted.
On the other hand, delivery difficulties continued for truck chassis in the first three quarters, which, in combination with bottlenecks in the installation network, led to high finished stock levels.
The company’s growth regions NAM (North America) and APAC (Asia Pacific), as well as the Marine sector, recorded the highest profitability increases in 2023. With revenue growth of around 17%, NAM remained the strongest growth driver. With the opening of its new regional headquarters in Schaumburg (Illinois) in June 2023, Palfinger said it once again showed its claim to market leadership in its second-largest region.
The positive economic development in the APAC region, except for China, led to high order intake for loader cranes, said the company, adding that the Marine sector was able to significantly increase revenue and profitability due to increases in cruise ship service orders as well as offshore and wind cranes.
Slowdown in EMEA region
The EMEA region recorded a low order intake as a result of a weak construction sector. However, due to the fully effective price increases, significant growth in revenue and an improvement in profitability were achieved across all product lines.
To meet the high demand in the NAM region, Steyr Automotive has been won as an installation partner for Palfinger truck-mounted forklifts for the North American market from September 2023. By 2027, 1,700 truck-mounted forklifts are to be delivered to North America every year.
Palfinger also reported the achievement of an important milestone in the digitalisation of its product range through its partnership with Aker BP and Optilift. As part of a long-term cooperation, remote-controlled offshore cranes are being developed for the marine industry.
Palfinger’s 2024 outlook
The economic environment is currently very challenging, especially in Europe, said the company, adding that the order backlog gives visibility until the end of Q2/2024. For the first half of this year, Palfinger expects revenues to be stable compared to the previous year, and profitability to be good.
The company added that there is very limited visibility for the second half of 2024, with Palfinger focusing on further increasing resilience through optimisation of working capital, strict investment management and targeted cost reductions in 2024.
The ambitious financial targets for 2027 remain unchanged, the report added, with Palfinger striving for a revenue of EUR 3.0 billion with an EBIT margin of 10% and a return on capital employed of 12% until 2027.