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UPDATE 1-Cranemaker Palfinger sees demand in Europe weakening
August 7, 2014 / 7:06 AM / 3 years ago

UPDATE 1-Cranemaker Palfinger sees demand in Europe weakening

* Q2 revenue rises to 272.5 mln eur vs poll avg 268 mln

* Q2 EBIT falls to 20.9 mln from 21.1 mln, poll avg 22.2 mln

* Expects 2014 revenue to increase at double-digit rate (Adds Q2 figures, company comments on outlook)

VIENNA, Aug 7 (Reuters) - Austrian cranemaker Palfinger expects growth to slow in the second half as demand in Europe slackens, it said on Thursday, while reporting second-quarter operating profit that narrowly missed market expectations.

“Since May 2014, Palfinger has recorded a slight decrease in demand in some of the European core markets while considerable growth potential is still seen in the non-European regions and the global marine business area,” it said.

“This circumstance and Palfinger’s trend monitoring suggest a moderately positive development in the second half of 2014. Nevertheless, the management expects a double-digit (percentage) increase in revenue in the current financial year.”

Palfinger had forecast double-digit sales growth in February, when it said it had seen a “slight upward trend” in Europe in the second half of 2013.

It saw potential to boost annual sales to around 1.8 billion euros ($2.4 billion) by 2017 by rolling out its broad product line in BRIC (Brazil, Russia, India and China) emerging markets.

It said on Thursday second-quarter earnings before interest and tax (EBIT) fell to 20.9 million euros from 21.1 million a year earlier. Analysts polled by Reuters had expected EBIT of 22.2 million, up 5.2 percent.

Revenue rose to 272.5 million, beating the poll average of 268 million.

1 US dollar = 0.7477 euro Reporting by Michael Shields; Editing by Mark Potter

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