Palfinger 4Q 19 - A (not completely unexpected) cautious message on FY 20
Palfingers record year 2019 ended on a soft note. Although 4Q revenues and net profit were in line but EBIT fell substantially short of our estimate. For FY 20 the company refrained from providing financial guidance which is very unusual. Outlook comments support the recovery story of marine cranes but more caution on the truck crane business. Additionally, Palfinger sent out an ad-hoc message, warning that 1Q 20 earnings will well below the high comparable period (weaker product/regional mix). With these factors in mind, and deeming current earnings forecasts too ambitious, we expect a negative share price reaction.Palfinger provides lifting solutions for use on commercial vehicles and in the maritime field. Co. is engaged in providing loader cranes, timber and recycling cranes, marine cranes, wind cranes and hooklifts service. In addition, Co. is engaged in providing tail lifts and high-tech railway systems. Co. offers its products and services primarily to construction industry, transport logistics, public authorities, waste disposal, forestry and agriculture and railway infrastructure. In the marine business, Co. sells worldwide, primarily to customers in deep sea navigation and in the oil and gas industry. Co.'s brand is LIFETIME EXCELLENCE.
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