palfinger at a glance

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Performance by Segment
conSolidated MANAGEMENT REPORT / Segments and Outlook
300,000
250,000
2009 2010 2011
223,938
AREA UNITS
The AREA UNITS segment comprises the areas North America, South America, Asia and Pacific,
India and CIS together with their respective regional business units.
The areas outside Europe are still being developed, which was reinforced by the recent acquisitions
in North America and Russia and the initiatives promoted in China. In combination with the US
market still being on a low level, this resulted in this segment posting negative results. By integrating
and further expanding its strategic initiatives PALFINGER aims to quickly enter the profit zone in the
AREA UNITS on the basis of continued growth.
In the third quarter of 2011, PALFINGER took over the leading crane producer in Russia, a huge
growth market; the results posted by INMAN have been included in this segment since 26 August.
200,000
150,000
100,000
50,000
0
0
(5,000)
(10,000)
(15,000)
100,490
Development of
segment revenue
(EUR thousand)
2009 2010 2011
(10,143)
172,613
(7,612)
(1,102)
Development of
segment EBit
(EUR thousand)
BusineSS development in 2011
In the reporting period, revenue generated by the AREA UNITS segment increased by 29.7 per cent
from EUR 172.6 million to EUR 223.9 million year on year. At 26.5 per cent, the share of the areas
outside Europe in the consolidated revenue remained at the same level as in the previous year.
In the fourth quarter of 2011, revenue amounted to EUR 66.4 million, which was an impressive
45.1 per cent higher than in the same quarter of the previous year. This was due in part to increases
in revenue in all product areas in North America. In addition, the CIS area, in connection with the
acquisition of INMAN, was a major growth booster.
At –EUR 1.1 million the segment’s EBIT for 2011 was better than the figure of –EUR 7.6 million
recorded for 2010. After the positive effect in connection with the acquisition of the Omaha
Standard Group in the third quarter of 2010, in 2011 a one-time positive effect of EUR 4.0 million
resulted from the initial consolidation of the acquisitions made. Moreover, the improvement of EBIT
shows that PALFINGER is on the right track towards posting positive earnings.
The transition to order-based manufacturing in South America had very favourable effects on
results. The main burdens were the market development expenses for new regions and products in
North and South America and Russia, as well as the integration costs incurred in connection with
acquisitions.
EUR thousand Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011
Segment revenue 30,601 41,380 54,856 45,776 44,693 51,406 61,401 66,438
Segment EBIT (3,865) (2,653) 839 (1,933) (2,588) (1,746) (917) 4,149
North America
In the area North America, the local product range was rounded out with the acquisition of ETI,
an access platform producer, in 2010. Furthermore, all the business units in this area reported
significant revenue growth during the reporting period, thereby bringing its result back into the
black. PALFINGER is still working hard to integrate the business units in terms of value creation as
well as distribution and dealer networks in a move designed to generate further potential for this
area. Additional potential was created by restructuring PALFINGER’s own dealer network in the USA.
palfinger Annual Report 2011
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