palfinger at a glance

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Significant Changes
conSoliDateD MANAGEMENT REPORT / PERFORMANCE OF PALFINGER
A look at the performance of the individual quarters of 2011 shows the continuous upward trend,
even though the second half of the year was affected by the fact that there were fewer working
days due to the summer company holidays and the Christmas holidays. Both revenue (Q1:
EUR 191.6 million; Q2: EUR 222.7 million; Q3: EUR 209.7 million; Q4: EUR 221.7 million) and EBIT
(Q1: EUR 15.1 million; Q2: EUR 20.9 million; Q3: EUR 16.5 million; Q4: EUR 15.5 million) reflect the
successes achieved.
In Europe, business in many core markets continued to grow in nearly all product divisions in 2011.
In Spain, Greece and Portugal, all of which were hit particularly hard by the crisis, markets were still
weak during the period under review. The destocking process carried out by dealers in previous
years, in particular in knuckle boom cranes and timber cranes, played a significant role in the
improved market situation’s having an immediate effect on order intake and consequently, through
order-based manufacturing, on revenue. In addition, the successful acquisitions carried out in the
Marine Systems business unit in 2010 also contributed to increasing revenue and earnings. The
higher capacity utilization at the manufacturing and assembly sites and the raised efficiency due to
process enhancements boosted earnings in Europe even further. Substantial improvements in the
product divisions Hookloaders and Access Platforms also had a positive effect.
Of the areas outside Europe, North America in particular recorded increases throughout the year,
with the acquisition of ETI in the second quarter of 2010 accounting for around one fourth of the
increase in revenue posted in these areas.
Revenue in Asia and India was stepped up significantly as well, even though revenue generation
in these areas is still comparatively low. In the area CIS, another major step in PALFINGER’s internationalization
strategy was taken through the acquisition of the leading Russian crane manufacturer
INMAN in August 2011, which considerably increased the significance of the Russian market for the
Company.
As incoming orders picked up in the areas outside Europe, revenue grew as well; the measures
initiated to boost earnings, process enhancements in value creation and the expansion of orderbased
manufacturing were factors contributing to the continued improvement of earnings.
Significant Changes
Enhancing flexibility
Due to the increasing volatility of the markets, only short-term predictions of corporate developments
are possible, which makes the issue of flexibility more important than ever in all corporate
areas. As a consequence, a further increase in flexibility was defined as the third strategic pillar of
the PALFINGER Group in 2010.
Under its Group-wide project entitled CC-Top (CC for “current capital”), initiated to reduce inventories,
receivables and trade payables, PALFINGER has been placing a stronger focus on current capital
employed since 2010. The project was continued in 2011 with new objectives. Under this project,
PALFINGER succeeded in considerably reducing average net working capital in proportion to revenue
in 2010, and despite strong increases in revenue and a high degree of value added continued to
lower it even further in proportion to revenue in 2011. The capital released made it possible to make
investments without significantly augmenting PALFINGER’s net debt.
Information PurSUant to
Sec. 243a of the BUSineSS Code,
Extraordinary General Meeting
Page 64
Investor Relations,
Buyback of shares
Page 26
In order to be able to take corporate actions facilitating greater flexibility in funding, PALFINGER
held an Extraordinary General Meeting on 3 November 2011. The Meeting passed a resolution on
an authorized capital in the amount of EUR 10 million. Moreover, the Management Board was authorized
to buy back shares in the magnitude of up to 10 per cent of the Company’s share capital.
On 1 December 2011, PALFINGER started a share buyback programme to this end. These resolutions
made it possible for PALFINGER to act quickly and flexibly, even when it comes to financing
large-scale growth measures.
palfinger Annual Report 2011
61