Release from 07.03.2024
- Despite difficult conditions, revenue of EUR 2.45 billion, EBIT of EUR 210.2 million and consolidated net result of EUR 107.7 million
- Best EBIT margin since 2008 and record dividend
- North America, Asia and Marine are growth markets — profitability increases in all regions
Bergheim, Austria on March 7, 2024
A record year in terms of revenue, EBIT and consolidated net result: PALFINGER AG looks back on 2023 as the most successful fiscal year in the company's history. Despite ongoing geopolitical upheavals, rising interest rates and inflation, the global technology and mechanical engineering company achieved record revenue of EUR 2.45 billion, the highest ever operating result of EUR 210.2 million and a record consolidated net result of EUR 107.7 million. The economic environment is extremely challenging, particularly in Europe. “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” says Andreas Klauser, CEO of PALFINGER AG.
Improved supply chain enables high outputThanks to improved supply chains and increased delivery reliability, output was significantly increased, and production backlogs reduced in the first half of 2023. 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.
Growth drivers North America, Asia and Marine; order intake in Europe at a low levelThe PALFINGER growth regions NAM and APAC as well as the Marine sector recorded the highest profitability increases in 2023 — with revenue growth of around 17 percent, NAM remained the strongest growth driver. With the opening of its new regional headquarters in Schaumburg (Illinois) in June 2023, PALFINGER once again shows 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.
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.
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.
Strong partnerships for long-term successTo meet the high demand in NAM, 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 achieved an important milestone in the digitalization of its product range through its partnership with Aker BP and Optilift. As part of the long-term cooperation, remote-controlled offshore cranes are being developed for the marine industry.
Outlook 2024 The economic environment is currently very challenging, especially in Europe. The order backlog gives visibility until the end of Q2/2024.
For the first half of the year, PALFINGER expects a stable revenue compared to the previous year and good profitability. There is very limited visibility for the second half of 2024. PALFINGER is focusing on further increasing resilience through optimization of working capital, strict investment management and targeted cost reductions in 2024.
The ambitious financial targets for 2027 remain unchanged: PALFINGER strives for a revenue of EUR 3.0 billion with an EBIT margin of 10 percent and a return on capital employed of 12 percent until 2027.
Here you can find the PALFINGER AG annual report 2023:
https://www.palfinger.ag/en/investors/publications/finance-publicationsHere is the magazine “&beyond” that accompanies the PALFINGER AG annual report 2023:
https://www.palfinger.ag/en/investors/publications/finance-publications