palfinger at a glance

search Print
Financial Position, Cash Flows and Result of Operations
conSoliDateD MANAGEMENT REPORT / PERFORMANCE OF PALFINGER
Cash flows
The funds reported in the statement of cash flows correspond to the balance sheet item cash and
cash equivalents.
In the 2011 financial year, cash flows from operating activities amounted to EUR 37.7 million,
compared to EUR 49.1 million in the previous year. This change was caused by a clearly positive
result before income tax posted in 2011, the reverse effects from the necessary augmentation of
inventories in connection with the expanded business volume and an increase in tax burden due to
the improved earnings situation.
Cash outflows for investing activities came to EUR 34.6 million, which is 36.0 per cent below
the previous year’s figure of EUR 54.1 million. While investments in acquisitions of companies were
significantly lower, amounting to EUR 11.5 million (previous year: EUR 36.3 million), replacement
investments in property, plant and equipment and intangible assets were stepped up.
The described effects arising from the cash flows for operating activities and investing activities
resulted in higher free cash flows of EUR 11.7 million in 2011, after EUR 4.2 million in the 2010
financial year.
Despite the effect of the dividend payment in 2011, cash outflows for financing activities
decreased by EUR 8.7 million to EUR 3.9 million (previous year: EUR 12.6 million) due to additional
long-term credit being taken out.
Free cash flows
EUR million Jan–Dec 2011 Jan–Dec 2010 Jan–Dec 2009
Cash flows from operating activities 37.7 49.1 50.0
Cash flows from investing activities (34.6) (54.1) (15.9)
3.1 (5.0) 34.2
Adjusted interest on borrowings after tax 8.6 9.2 7.8
Free cash flows 11.7 4.2 42.0
Result of operations
In the 2011 financial year, revenue increased by 29.7 per cent to EUR 845.7 million (previous year:
EUR 651.8 million). With a share of 73.5 per cent (previous year: 73.5) the EUROPEAN UNITS segment
was the main contributor to sales revenue. The European Union remained the Group’s most
important sales market, accounting for 63.9 per cent of revenue (previous year: 64.3 per cent).
North America’s share in sales revenue increased from 16.1 per cent in 2010 to 16.7 per cent in the
year under review. Central and South America also generated slightly higher revenue than in the
previous year.
As a consequence of the higher production volume, expenditures for materials and external
services increased from EUR 337.3 million to EUR 458.7 million.
The increase in employee benefits expenses from EUR 178.7 million to EUR 216.9 million
reflected, on the one hand, the general recovery of the markets and the consequent stepping up
of resources and, on the other hand, the acquisitions made. In addition, the discontinuation of
short-time work and the balance-sheet inclusion of bonus payments impacted this figure.
The rise in EBIT for the 2011 financial year to EUR 67.9 million (previous year: EUR 37.1 million) was
based on the positive market development in both segments, the positive effects of the acquisitions
made and the enhancement of efficiency in connection with the improvement measures implemented
in recent years.
palfinger Annual Report 2011
67