Palfinger revenue up 12% - strong growth in the Americas

In the first half of 2012 Palfinger has reported a revenue growth of 12% to €465.1 million compared to H1 in 2011. This was achieved, said Palfinger, "despite the prevailing difficult economic situation, especially in Europe, "and with the help of, "the growth achieved in the areas North America, South America and CIS."

Herbert Ortner, chief executive officer of Palfinger AG said, "We have perceived an increasingly cautious mood in Europe, and the uncertainty of the markets has had a noticeable effect on demand. In the present situation, Palfinger benefits in particular from its long-standing strategy of internationalisation.

"In the growth markets of Brazil, Russia and India, we have been well-positioned for quite some time now. In the first half of 2012, we achieved this milestone for China as well. We have entered into a partnership with the Chinese Sany Group that is going to open this promising market for us."

Business development in Europe in the first half of 2012 was said to be a little weaker than in the previous year, but the individual countries showed a mixed picture. While Germany and France, the countries accounting for the largest revenue contributions, still recorded growth, Spain, Portugal, Greece and Italy remained at extremely low levels.

Palfinger reported that the development of demand in North America, South America and CIS had been positive for several quarters. In comparison with the first half of 2011, revenue generated by the "Area Units" segment rose by 55.1% to €149.0 million, which means that areas outside Europe now account for 32% of consolidated revenue.

Business performance in Asia remained below expectations in the period under review. However, by signing the joint venture agreements with Sany Heavy Industry, to distribute each others cranes, the foundation has been laid for additional growth in these markets. The two joint ventures with Sany are expected to start operations before the end of the third quarter of 2012, after the approval of the competent authorities has been obtained.

The joint venture: Sany in China and Palfinger in Austria will each hold a 50% share in the two new companies. Changsha, China-based SanyPalfinger will manufacture and sell Palfinger knuckle boom cranes in China while Austria-based PalfingerSany will distribute wheeled mobile cranes produced by Sany in the world market outside China. Cranes will be the initial focus of the joint ventures but work could start with the aerial work platforms as soon as 2013.