Palfinger predicts a record year

Palfinger continues on the recovery track, with the positive performance in the second half of 2020 replicated during Q1 of 2021. The company has just reported an EBIT margin of 9.9% - slightly up on last year's figure of 8%. "Palfinger faced two weeks of production downtime due to a cyber attack at the end of January, the consequences of which are being compensated for as quickly as possible. For this reason, extra shifts are being worked at our production sites," says CEO Andreas Klauser. "We reacted fast and efficiently to the cyber attack, successfully limited the damage and restarted production in the shortest time possible," he adds. Palfinger says the global economic recovery is reflected in its strong order intake and consequently full order books; therefore, all plants are working at full capacity. Economic growth of 8.4% is forecast for China, 6.4% for the USA and 4.4% for Europe. The upturn is being driven largely by the construction industry. The timber industry is developing positively, too. However, the upturn is accompanied by rising raw material prices which results in higher costs along the supply chain. "We also have to keep in mind the risk of limited material availability," Klauser warns. Group revenue amounted to EUR405.9 million (USD489.1 million) in Q1 of 2021 compared with EUR393.2 million (USD473.8 million) for the same period in the previous year - a rise of 3.2%. Earnings (EBITDA) increased by 16.3% compared with Q1 of 2020. Looking ahead, the company predicts a record year, with revenues in excess of EUR1.75 billion (USD2.11 billion). However, despite full order books and the worldwide economic upswing, there are substantial risk factors such as supply chain limitations, higher raw material prices, production capacity bottlenecks, and uncertainty concerning the COVID-19 pandemic, it cautions.