Palfinger has purchased a 91 per cent stake in Brazilian crane manufacturer Madal S.A. Palfinger; the Austrian loader crane manufacturer picked up the stake in the Brazilian crane maker with estimated revenues of $15 million. Madal S.A is as well the South American market leader in hydraulic truck cranes and other hydraulic lifting equipment.

The acquisition marks the next stage in the Austrian company's internationalization strategy.  The new entity, to be named Madal-Palfinger, will have access not just to the Brazilian market but to the whole of South America. Madal has a network of about 33 dealerships in 10 South American countries.

State Capital, was the Financial Advisor for Madal, Luca Longobardi and Paulo Saraiva, founder and partner of the US Investment bank, guided Walter Dal Zotto, Madal's main shareholder throughout the entire transaction.

PALFINGER has maintained a vigorous growth campaign that picked up immensely in the first half of 2001. Despite the decline in sales of truck cranes, revenue climbed by 14.8 per cent to €180.0m and operating profits (EBIT) rose by 11.8 per cent to EUR 25.7m.


The profit before tax increased by 13.1 per cent to €23.5 million, while the consolidated net profit for the first half-year amounted to €15.4m. Compared with the same period last year, this represents an increase of 13.8 per cent.

Finance for this expansion and for the improvement of PALFINGER's capital structure generally came from a capital increase. In a one-for-ten rights issue at E€34, PALFINGER placed 837,000 new shares with shareholders in Austria and Germany. The rights of the principal shareholder were largely waived, with the result that the free float increased to 36 per cent.

Palfinger Management is predicting continuing growth for the PALFINGER Group, coming principally from the new products, hook loaders, tailgates and the MOBILER range, as well as from MADAL. However, business developments in Europe and the Americas can be expected to have a significant effect on the final results. Despite an excellent second quarter, any further slowdown in the global economy is bound to impact on Group profits, said the firm.

A major project in the second half-year will be the reorganization and integration of MADAL. In Europe, PALFINGER will continue to push PALGATE-tailgates and the MOBILER range in their markets, Palfinger reiterated.

22 Nov 2010.