New CEO at Palfinger: "First do our homework"

New CEO at Palfinger: "First do our homework"

SALZBURG. Andreas Klauser wants to transfer the experience of the automotive industry in the world of cranes.

Andreas Klauser has been CEO of the Salzburg crane manufacturer Palfinger for seven weeks. Yesterday, Mollner and his hometown of Mondsee, with Financial Director Felix Strohbichler, who had been in power since October, presented figures for the first half. The most important thing: The case with the cranes on land goes well, in need of renovation of business with the cranes on and on the water reached the bottom.

With programmatic declarations, the new direction was back again. The most important task is to make the group more efficient. The potential is considerable, said the neo-chief. In the marine sector, where there have been several acquisitions in recent years, there are still many small islands of production.

Cancellation of New Acquisitions

Klauser called for the goal of developing common products such as hydraulic cylinders and other elements of unification. In September, launch a synergy program. Klauser wants to bring his experience of platform in the sector of the commercial vehicles. After all, the 52-year-old was nearly 30 years old at Steyr Landtechnik and CNH's Fiat subsidiary with Case, New Holland and Steyr.

There will be no acquisitions in the next two years, Klauser said. "First, we do our homework." The predecessor Herbert Ortner left prematurely the previous year. Shortly after, Palfinger had to give a warning on profits.

Palfinger makes 85% of his business with cranes used on land. The most important product is the loading crane, which alone accounts for 40% of sales. In the troubled naval sector, 60% of activity comes from the oil and gas sector. This division has been suffering since 2012 because of the low price of crude oil. Renovation costs again this year and 2019 still money, said CFO Strohbichler.

Half of the world's 3000 oil rigs are still out of service. First, the service sector is starting to recover because drilling equipment will be back in service because of rising oil prices, Strohbichler said. In the new cargo building sector, it takes 18 months from the order, until a ship crane is mounted. A start of the naval activity is expected in the second half of 2019 and beyond.

The activity of conventional loading cranes is very different: the demand is high. Palfinger has delivery problems because the suppliers could not keep their promises. As a result, customers should wait for cranes for nine months. Orders that would now be signed would not be produced until 2019.

Palfinger's largest factory is located in Lengau in the Innviertel, where 1,100 employees work. The group employs more than 10,000 people, most of whom are family businesses and 33% of the companies with floating capital.

Debt is relatively high and represents 86% of equity. Over the next few weeks, Palfinger will issue a promissory note of 120 million euros, which refinances short term debts.

The turnover reached the highest level of 802 million euros in the first half. The operating result (EBIT) amounts to 71 million euros. Excluding recovery costs, the company has an EBIT margin of more than ten percent. (sib)

Show comments »