Capacities adjusted

Too little demand: Palfinger cuts production

While some markets in Europe are performing weaker, countries such as India and Brazil are developing well.

(Bild: Palfinger AG)

Stock levels are high, but demand is weak - which means that Palfinger now has to react. The specialist for cranes, work platforms and lifting solutions is cutting back on production. The plant in Lengau (Upper Austria) is also affected by the measures.

"Exciting" and "mixed" - this is how Palfinger CEO Andreas Klauser describes the first half of the year, in which the specialist for cranes, work platforms and lifting solutions recorded a 3.3% drop in turnover to €1.175 billion and was able to increase the Group result to €68.3 million.

However, because demand in Scandinavia, Germany, France and China is weakening alongside the construction industry, meaning that stock levels are too high, the Salzburg-based company has hit the brakes and reduced production.

We are now also facing corresponding headwinds. The markets in Scandinavia, Germany and France are stagnating.

Andreas Klauser, Palfinger-AG-Chef

Bild: IV OÖ/Roland Pelzl

There seems to be no improvement in sight for the second half of the year either. "We will continue to adjust capacities," says CFO Felix Strohbichler. For the 1,175 employees at the plant in Lengau, this also means that the summer vacation will now last a week longer. "We have also not made certain additional appointments in order to get through the downturn as leanly as possible," says Klauser.

Flexibility is also key. Here, the Palfinger boss talks about employees working 80% and receiving 90% of their salary in return - in other words, internal short-time working.

"Don't wait until something big and bad happens"
Klauser emphasizes that the company is acting with foresight and trying to create stable conditions. "We're not waiting until something big and bad happens," says the manager from Molln, who emphasizes: "There are currently no plans for major staff cuts."