Alimak Group accelerates profitable growth despite inflation

Premium Content

October 20, 2022

Alimak’s third-quarter reports show revenue jumped 21% with acquisition of Tall Crane Equipment and Tractel, but 7% of that growth was organic. Photo: Alimak Group

Alimak Group AB’s third quarter results suggest its New Heights Programme is delivering on its design with solid organic growth, increased margins and accelerated merger and acquisition activity. The giant, Sweden-based designer/manufacturer of vertical access solutions engineered a 21% revenue jump in the quarter to MSEK 1,095 (million Swedish kronor, or $970.8 million) at an EBITA margin of 13.7%.

During the quarter Alimak closed the acquisition of Tall Crane Equipment and signed the deal to acquire Tractel. Nevertheless, the company’s organic revenue increased 7%.

January-to-September results showed similar growth. Revenue increased 15% to MSEK 3,109 ($276.6 million) at 12.8% EBITA margin. Organic revenue growth was 4%.

Tractel to add operations

The MEUR 500 (million euro, or $490.1 million) acquisition of Tractel added a SEK 6 billion ($535.6 million) annual revenue stream at what Ole Kristian Jødahl, Alimak president and CEO, calls “stable high margins for the last ten years.

“We are excited to get all this competence on board and all the opportunities for increased value creation the acquisition brings into our existing business as well as adding a new vertical, Height Safety & Productivity Solutions.”

That acquisition is expected to close in the fourth quarter.

Tall Crane strategy
Graphic: Alimak Group

In August, Alimak consolidated its MSEK 215 (27 million Canadian dollars) acquisition of Tall Crane Equipment LTD, a hoist and crane rental services provider headquartered in Langley, British Columbia, Canada. Tall Crane, said Jødahl, “reflects our strategic goal of being close to our customers in the markets they operate. Tall Crane´s rental services business provides a good foundation to expand Alimak Group’s new and used product offerings, establishing a wholly owned footprint in Canada.”

Growth in top markets

Third-quarter performance in Alimak’s three largest markets was dramatic:

  • In Façade Access, order intake leaped 57%, corresponding to an organic increase of 36%. Revenue increased by 28% – 11% organically.
  • In Construction, order intake jumped 20%, with 3% organic increase. Revenue increased by 27%, with an organic increase.
  • Industrial order intake grew 24%, with a 12% organic increase. Revenue increased 30%, with organic growth of 15%.
Fighting inflation

“We have continued to mitigate the effects of high cost inflation through active price management, with several price increases made during the year and good cost control,” said Jødahl. “The entire organization has worked diligently to manage the current challenges, in close dialogue with our customers, suppliers and partners. Cash flow improved in the quarter, compared to the first six months of the year, as a result of increased cash collection, and we will continue to have focus on the working capital.”

Sponsored Content
Latest news
Geda lifts for Belgium hospital hub
Challenging project to combine four hospitals under way with supprt of rental major Verhelst
Altrad raises €1.25bn in ‘landmark’ bond offer
Offering oversubscribed six times over, said French company
Geda viaduct project makes history in Slovenia
Project is largest viaduct renovation in Slovenia’s history  
Böcker capacity innovation leads to larger Super-Lifts
Faster and higher models thanks to EC approval 
Utility Expo 2025 expands with competitions, partnerships
Biennial event will take place October 7 to 9 in Louisville, Kentucky, USA
Working at Height conference speakers confirmed
Sunstate’s Norty Turner heads line-up for Nashville event, October 15-16
More News
Videos & Podcasts
Podcast: The EQ shift in construction leadership
Premium Content
Jevon Wooden on emotional intelligence’s role in boosting employee engagement and business performance 
PODCAST: SAIA President on the scaffold market and strategic plans
Premium Content
Mike Bredl sits down with SA to discuss the SAIA’s new initiatives and how the industry could play out this year
What to expect from the suspended scaffold industry’s new training program
Premium Content
A new suspended scaffold training program will replace the current, decades-old version
More Videos & Podcasts
STAY CONNECTED


Receive the information you need when you need it through our world-leading magazines, newsletters and daily briefings.

Sign up

CONNECT WITH THE TEAM
Euan Youdale Editor Tel: +44 (0)1892 786 214 E-mail: euan.youdale@khl.com
Lindsey Anderson Editor Tel: +1 312 929 4409 E-mail: lindsey.anderson@khl.com
Tony Radke Sales Manager Tel: +1 480 478 6302 E-mail: tony.radke@khl.com
Ollie Hodges Sales Manager Tel: +44 (0)1892 786253 E-mail: ollie.hodges@khl.com
CONNECT WITH SOCIAL MEDIA