Palfinger AG has started 2022 with historic high revenues for Q1. However, the ongoing positive market environment and the increasing order backlog are facing the effects of the war in Ukraine, rapidly rising materials costs and unstable supply chains. In this disparate environment, the Bergheim-based group booked record revenue of EUR485.6 million (USD510.3 million) and earnings before interest and taxes of EUR30.4 million (USD32 million) in the first quarter.
The performance was driven by “the excellent market environment in the EMEA, NAM and LATAM regions in Q1”, according to directors. The high demand in these three regions is attributed to 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 capitalised on in a targeted and proactive way,” the company notes.
Despite materials, personnel and capacity bottlenecks, Palfinger is maintaining output at a high level. But uncertainties in the war in Ukraine and general materials shortages have led Palfinger to adjust 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,” says CEO Andreas Klauser.
He notes that 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 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.