Palfinger revenue down but orders stabilised

Knuckle boom crane manufacturer Palfinger reported revenue for the first half of 2009 down by 36% at Euro 269 million (US$ 382 million) compared to the record Euro 424 million ($602 million) for the first half of 2008.

Despite the weak economy order intake at the Austri-based company stabilised at a low level in recent months, Palfinger said. "The developments of recent months have shown clear signs of bottoming out in the markets that are of relevance to us. Order intake in the US and Asia is even slightly on the rise again. The implementation of the infrastructure projects announced and/or agreed upon all over the world will also generate a clear impetus. As an early-cycle company we are cautious but nevertheless optimistic for the upcoming quarters", said Herbert Ortner, CEO.

Crane sales were almost zero in some European markets and in Russia and there were declines in the two largest markets of Germany and France.

Cost savings policies returned a positive first half year 2009 EBITDA (earnings before interest, taxes, depreciation and amortisation) of Euro 4.9 million ($7 million). For the same period in 2008 it was Euro 69.2 million ($98 million). A positive EBITDA is expected for the entire year 2009.

While performance was forecast to be slow in the third quarter 2009 due to the small volume of orders on hand Palfinger was cautiously optimistic for the fourth quarter.