Inventories are high, but demand is weakening – this means that Palfinger must react now. The specialist for cranes, work platforms and lifting solutions is reducing production. The plant in Lengau (Upper Austria) is also affected by the measures.
“Exciting” and “mixed” – this is how Palfinger boss 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 EUR 1.175 billion and consolidated profit could rise to EUR 68.3 million.
Because, in addition to the construction sector, demand in Scandinavia, Germany, France and China is also weakening and stocks are therefore too high, the Salzburg company has put on the brakes and produced less.
There also seems to be no improvement in sight for the second half of the year. “We will continue to adjust capacities,” says CFO Felix Strohbichler. This also means for the 1,175 employees at the Lengau plant: the company holiday in the summer will now last a week longer. “We have also not carried out certain replacements in order to get through the recession as smoothly as possible,” says Klauser.
Furthermore, flexibility is crucial. Here the boss of Palfinger is talking about employees who work 80% and receive 90% of their salary – in other words, internal short-time working.
“Don’t wait for something big, bad to happen.”
Klauser emphasizes that they are acting with foresight and are trying to create stable conditions. “We are not waiting for something big, bad to happen,” says the manager of Molln, who emphasizes: “There are currently no major staff reductions planned.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
