palfinger at a glance

Performance by Segment
conSolidated MANAGEMENT REPORT / Segments and Outlook
> search Print
South America
PALFINGER still sees South America as a growth market in which the Group consistently pursues
the establishment of new products such as its EPSILON timber and recycling cranes. In 2011,
satisfactory increases in revenue were generated particularly in Chile. Increased efficiency in value
creation through order-based manufacturing has already had a positive effect on this area’s results.
The situation in the market for telescopic cranes is proving more and more difficult due to the products
of Chinese competitors. PALFINGER is examining possible strategic options in this connection.
Asia and Pacific
PALFINGER continued to achieve growth in the area Asia and Pacific, which is still small, with
revenue up by approx. 26 per cent compared to the previous year. This area thus contributed
around 2 per cent to the Group’s consolidated net result for the period. In China, having established
a value-creation site in Shenzhen, PALFINGER is now intensively developing further strategic options
designed to significantly enhance growth potential in this area for the PALFINGER Group.
India
In the area India, results for 2011 were impacted by the costs of start-up and expansion incurred in
connection with the new assembly site in Chennai. Local value creation at the site was expanded
further in order to meet market requirements. The intensified market development efforts made
since 2010 have already brought about a satisfactory improvement in incoming orders. The successful
introduction of a telescopic crane adapted to local needs promises a consolidation of this trend.
For the first time, suitable local suppliers were selected to expand the Group’s supplier base. This
has helped to improve the cost structure.
CIS
The area CIS has already benefited considerably from the local sales organization implemented in
2009. Since then, the distribution of PALFINGER products has been advanced through the company
Palfinger Crane Rus, in which PALFINGER formerly held a 49% share. To ensure the ideal organization
of further growth steps, the share in this company was increased to 80 per cent in the reporting
period. The number of PALFINGER dealers on both sides of the Ural already exceeds 50, and the
search for additional local partners is progressing well. Sales figures developed satisfactorily in 2011,
particularly for knuckle boom cranes and timber and recycling cranes.
With the takeover of the leading crane manufacturer INMAN, PALFINGER reached a major milestone
in expanding its local presence through distribution and value-creation structures. Moreover, a
locally recognized product was added to the Group’s product portfolio through this acquisition. This
expansion step has contributed considerably to Russia’s becoming one of the most important individual
markets for the PALFINGER Group in the future.
Expansion of business outside
Europe is also reflected in
higher earnings.
Segment share in the consolidated net result for the period
in % of Group 2011 EUR thousand 2010 EUR thousand
External revenue 26.5% 223,928 172,613
EBITDA 5.2% 5,074 (2,244)
Depreciation, amortization and impairment 21.4% 6,175 5,368
EBIT (1.6%) (1,102) (7,612)
Segment assets 31.1% 230,079 182,302
Segment liabilities 30.8% 119,020 75,056
Investment in property, plant and
equipment, intangible assets 25.3% 6,173 5,111
EBIT margin (0,5%) (4.4%)
Average payroll during reporting period * 30.1% 1,685 1,281
* Consolidated Group companies excluding equity shareholdings and temporary workers.
96 palfinger Annual Report 2011