PALFINGER Q1 2022: Highest Q1 Revenues in a disparate Environment

• Strong demand in EMEA, NAM and LATAM
• Rising costs, unstable supply chain and war in Ukraine
• Limited visibility for 2022

1) Reporting date figures of consolidated Group companies without equity investments and without contract workers. 

PALFINGER AG starts 2022 with the historically highest revenue for Q1. However, the ongoing positive market environment and the increasing order backlog are faced by the first effects of the war in Ukraine, rapidly rising material costs and unstable supply chains. In this disparate environment, the Bergheim-based group booked record revenue of EUR 485.6 million and earnings before interest and taxes of EUR 30.4 million in the first quarter.
 

Demand Driven by Construction, Timber and Recycling

PALFINGER benefits from the excellent market environment in the EMEA, NAM and LATAM regions in Q1. The high demand in these three regions is driven in particular by the construction industry, forestry and recycling sectors. Over the next few years, PALFINGER sees the NAM and LATAM markets continuing to develop enormous growth potential that will be capitalized on in a targeted and proactive way.
 

Adjusting Production Capacities

Despite material, personnel and capacity bottlenecks, PALFINGER maintains output at a high level. However, the war in Ukraine further increases problems in the supply chain, which cause inefficiencies and high stock levels in production and assembly plants. In view of increasing delivery delays for truck chassis in EMEA and general material shortages, PALFINGER has adjusted its capacities in Q2. “We are proactively taking every measure to keep our delivery reliability at a high level for the upcoming difficult and unpredictable months in an attempt to cushion the negative impacts as much as possible,” emphasizes PALFINGER CEO Andreas Klauser.
 

First Sustainable Financing and the Best Interest Rate

The sharper focus on sustainability in 2021 is underlined in Q1 of 2022 by the first sustainable financing. The terms are highly attractive, with PALFINGER achieving the best ever interest rate level of 1.23 percent. This financing is subject to two sustainability KPIs: production-related CO2 emissions and accident rate.
 

Outlook

Despite the record order backlog, visibility of revenue and earnings for 2022 is limited. The existing order book limits the company's flexibility in passing on cost increases to its customers at short term notice. Taking this current situation and the effects of the war in Ukraine into account, PALFINGER has reduced its expectations for revenue and earnings for 2022. PALFINGER is still aiming for its medium and long-term goals. Revenue of EUR 2.3 billion from organic growth, ROCE of 12 percent and an EBIT margin of 10 percent are targeted to be achieved in 2024. Revenue is expected to pass the EUR 3.0 billion mark in 2030.

The online version of the results presentation for Q1/2022 is available here: https://www.palfinger.ag/en/investors/publications/presentations

Key Figures of the PALFINGER Group