The firm says that it was able to maintain a satisfactory order situation throughout the end of 2019 and the majority of the first quarter of 2020. Understandably, the corona pandemic at the end of the first quarter resulted in restrictions in business operations in numerous markets. This also had an impact on the sales levels of the Liebherr Group.
In spite of the challenge posed by the global pandemic, the firm reports that there is a steady demand for construction and mining machines and the company remains optimistic for 2020.
In the first half of 2020, the Liebherr Group achieved a turnover of more than €4.9 billion, 13.5% below the revenue level of the previous year. Overall, the area of Construction Machines and Mining recorded smaller drops than the other product areas of the Liebherr Group. Within Construction Machines and Mining, the Tower Cranes and Earthmoving divisions were more affected than the Mining, Mobile Cranes and Concrete Technology divisions, where the revenues only fell moderately.
The performance of the company across the regions differed greatly. There was a significant reduction in turnover in Central and South America, followed by Europe and North America. However, Liebherr was able to maintain its sales level in Africa and the Near and Middle East and even achieve growth in Asia and Oceania. As the regional differences show, the sales performances in the first half of the year can mainly be traced back to the effects of the corona pandemic, which restricted business operations in numerous markets worldwide.
Despite the effects of the corona pandemic on the business, the Liebherr Group maintained its level of employment. On 30 June 2020, Liebherr employed a total of 47,991 employees.
Of particular note is that demand improved in the third quarter of 2020 compared with the second quarter, even though it did not reach the level of the previous year. Both the incoming orders and orders on hand of the Liebherr Group give reason to be confident. There had been no significant numbers of cancellations of construction machines and mining equipment in spring and summer, and the order situation for construction machines is currently steady in the majority of the product segments. For example, the demand for wheeled loaders remains constant, even increasing in the segment of small wheel loaders. There is also strong interest in the latest generation of Liebherr crawler excavators. In contrast, some product segments for medium-sized and large machines, including dozers, have yet to gain momentum. This also applies to material handling technology. Particularly in the scrap handling segment, sales have not met the level of 2020. Whereas the market demand for Concrete Technology has achieved a lower level than the previous year, the interest from customers in tower cranes has stabilised again.
In the Mobile Crane market, there is currently a strong demand for large machines. Conversely, customers are more reluctant or cautious with regard to medium-sized telescopic mobile cranes. For crawler cranes, up to 300 tonnes, the incoming orders are steady and are at the level of the previous year. The same applies to special deep foundation machines. In the area of mining, mine operators are currently investing less in new machines than in the previous year. However, Liebherr was able to increase its market share for mining excavators in a declining overall market. Business with spare parts is steady.
Even at the peak of the coronavirus pandemic, work continued on construction sites in most countries. Liebherr maintained close contact with its customers and provided the usual fast and reliable service. Furthermore, the company continued its work on innovative products and technologies. For instance, in the first half of the year, Liebherr presented numerous new products for the construction and mining industry. Further product presentations are planned for the second half of the year.
Some of the new products being introduced by Liebherr include the telescopic wheeled loader L 509 Tele, as well as the new wheeled loader models L 526, L 538, L 546. With the R 940 Demolition, the Earthmoving division launched a new crawler excavator at the end of September. Furthermore, the TA 230 Litronic articulated dump truck celebrated its product launch at the end of October. In addition, the division announced the start of a strategic partnership with Leica Geosystems and now provides 2D and 3D machine control systems for their mobile and crawler excavators of the 6th and 8th generations in-house. At Conexpo, Liebherr presented a new mobile crane, the LTM 1120-4.1, for which delivery started a few days ago. The LTM 1150-5.3, another new mobile crane model, is currently being prepared for its product launch. Liebherr also responded to the digital transformation of the working world, which was accelerated by the corona pandemic, and further expanded activities in Remote Services, as well as the offer of digital training formats.
Following three fast-growing years in succession and a record turnover of €11.75 billion in 2019, the Liebherr Group is currently expecting a decline in sales of 10-15% for the current business year. However, this forecast is conditional due to the uncertainties surrounding the corona pandemic. The Liebherr Group is prepared for the current situation with declining sales figures as, regardless of the effects of the corona pandemic, a slight slowdown of the long-standing economic growth had become apparent, which probably would have led to a slight reduction in turnover anyway.
