PALFINGER Achieves Record Revenue Yet Again

• Record revenue of EUR 2.23 billion in a volatile environment
• Strong performance in growth markets NAM & LATAM
• Aiming for significant revenue and EBIT record in 2023

Bergheim, Austria on February 24, 2023

PALFINGER AG looks back on an eventful and successful year in 2022. Despite ongoing crises, the global technology and engineering company achieved record revenue of EUR 2.23 billion and, at EUR 150.4 million, the second highest operating result (EBIT).

Stressed supply chains and exploding costs
In addition to causing a humanitarian crisis, Russia's attack on Ukraine has also had a massive economic impact. Scarcity of resources, especially for truck chassis and electronic components, led to significant delivery delays and cost increases. Furthermore, market demand in EMEA weakened from Q2 2022 onwards.

At the same time, the zero Covid policy in China caused large-scale lockdowns, which resulted in massive delays and cancelations in the delivery of Chinese components worldwide and stagnating demand in APAC.

The Americas as a growth driver
By contrast, the NAM and LATAM regions proved to be strong growth markets. Customer feedback on the newly launched range of truck-mounted forklifts was extremely positive and led to a strong order intake. In the LATAM region, mining, civil engineering and agriculture are the main growth drivers, resulting in the region recording the highest percentage growth.

Future-focused actions secure profitability and supply chains
In order to compensate for cost fluctuations more quickly and transparently, PALFINGER introduced an index-based and flexible dynamic pricing model. This will lead to the company's profitability becoming more plannable and stable with effect from January 2023. With the two task forces “Gas Emergency Readiness” and “Supply & Operations Resilience,” PALFINGER implemented immediate and successful actions to reduce energy consumption and substitute natural gas as well as to secure the supply chain. “Despite material and personnel shortages, the supply chain task force enabled us to make the best possible use of our production capacities, achieve very good output and record revenue in manufacturing for third parties,” says PALFINGER CEO Andreas Klauser.

Investments for future success
With the expansion of our Köstendorf Global Technology Center and the Löbau site, as well as the opening of The Hub Vienna, PALFINGER has made important investments for the future.
The technology center in Köstendorf ensures that PALFINGER has uniform competencies made available across all product lines and that the components engineered feature a modular design.
At the Löbau site, the access platforms product line is being strengthened even further in order to continue to grow in this market segment as well.
The Hub Vienna exemplifies the company’s successful focus on the development of new, sustainable technologies and opens up access to future talents. 

Innovative leadership through strong partnerships
PALFINGER took a significant step towards eMobility with the eWorX module, which was developed in cooperation with ZF Friedrichshafen AG and Mercedes-Benz Trucks. As a result, every PALFINGER product can be set up and used on a high-voltage truck. PALFINGER is consistently continuing on its path as a producer of highly innovative and smart solutions with increased efficiency, enhanced safety and improved usability.

Outlook: Aiming for significant revenue and EBIT record in 2023
Based on the high order backlog, PALFINGER is targeting significant record revenue and EBIT for fiscal year 2023. Q1 2023 is expected to significantly exceed the comparable quarter of the previous year in terms of both revenue and EBIT (EUR 485.6 million in revenue and EUR 30.4 million EBIT in Q1 2022). In 2027, a revenue of EUR 3.0 billion is expected with an EBIT margin of 10 % and a return on capital employed of 12 %.

* Experience shows that deviations in earnings figures from the previous year or from analysts' estimates are more pronounced in Q1 or Q2, as individual effects have a stronger percentage effect on the lower base, without this resulting in a deviation from the communicated guidance for the full year.

The online version of the PALFINGER AG annual report for 2022 is available here:
https://www.palfinger.ag/en/investors/publications/finance-publications

Here is the magazine that accompanies the PALFINGER AG annual report 2022:
https://www.palfinger.ag/en/investors/publications/finance-publications