Palfinger announces new joint venture in Russia

Salzburg crane and hydraulic systems manufacturer Palfinger is to hold a 51 per cent share in a new joint venture in Russia, Austrian Times reported.
The firm said its new partner as Kraft Invest Group, which has been active in the construction-machinery sector in Russia for 16 years.

Palfinger said the Russian market had enormous potential and its turnover there had been increasing at a rapid rate before the onset of recession.
News of the new joint venture comes a few days after Palfinger reported worse than expected first half results.

The company reported its first-half turnover had slumped 36.4 per cent year on year to 269.2 million Euros and its operating earnings had fallen from a record high of 59.3 million Euros in the first half of 2008 to a minus 5.9 million Euros in the first half of 2009.

Analysts had expected a decline in turnover of 33.1 per cent and operating earnings of minus 3.6 million Euros.
Earnings before interest, taxes, amortisation and depreciaton (Ebitda) were 4.9 million Euros but lower than the 10.3 million Euros analysts had expected in the first half of the year. Ebitda in the same period last year was 69.2 million Euros.
Palfinger had an overall loss of eight million Euros in the first half compared to a profit of 42.5 million Euros in the same period last year.

The firm said it had cut costs and optimised production during the first six months of 2009 – moves it said had slowed the decline in its operating earnings in the second quarter.

But officials said they expected a 40-per-cent decline in turnover and positive Ebitda for the year as a whole. They added the third quarter would be bad but they were "cautiously optimistic" about the fourth quarter of the year.
Palfinger recently extended its part-time work regime to April next year following a lack of orders.

Firm spokesman Hannes Roither said managers would begin working 80 per cent of their usual hours while other workers would do 70 per cent of their usual hours.
He added the firm hoped it would not be necessary to extend part-time work again or to lay off any employees and that the part-time work regime had been extended for a third time at the company as orders had slumped and it had been using only between 50 and 60 per cent of its capacity.
 

Source: Transportweekly