Carraro closes 2021 with outstanding results (+34,5%)

Despite the difficulties that throughout the year continued to affect the global supply chain and the procurement of raw materials, 2021 is still a year to remember for Carraro, a company active in transmission systems for off-highway vehicles and specialized tractors. In fact, the 2021 draft budget was approved, from which positive data emerged, which testify to the solidity of the group. An excellent trend, which is part of the strong demand for new agricultural machinery recorded by the sector in 2021 in all areas of the world.

Carraro Group, a positive year

The consolidated turnover in 2021 reaches 643.9 million euros (+ 34.5%), a figure not comparable with the 478.7 million euros of the previous year, due to the lockdowns and slowdowns caused by the outbreak of the health emergency. However, a significant increase also compared to 2019 (+ 17.3%, 548.8 million), a year not impacted by the Covid emergency. For the DriveTech Business Area (axles and transmissions) the turnover is up by 38.4% compared to 2020, while for the Agritalia Business Area (specialized tractors) the increase is equal to 16.4%.

EBITDA at 31 December 2021 was 55.2 million euros (8.6% of turnover), an increase of 69.4% compared to 32.6 million euros (6.8% of turnover) in 2020 and 29.3% compared to 42.7 million in 2019 (7.8% of turnover).

In 2021, investments for 31 million euros were made for the purchase of machinery and the modernization of Carraro factories around the world. This figure is up sharply compared to the 16.3 million euros in the previous year, both in relation to the pandemic contingency of 2020 and to the strong acceleration given to the development of the Maniago and Indian plants, to adapt the production capacity necessary to support the growth in volumes.

In order to give continuity to this development process, investments of over 40 million euros are expected in 2022. In 2021, then, there was a significant increase in absolute values of the financial commitment in R&D activity, compared to the previous year, which went from 26.7 million euros in 2020 (5.6% of turnover) to 30.5 million euros (4.8% of turnover). This commitment will be even stronger in 2022, which will see a further boost in Research and Innovation with over 30 million euros already allocated to support the development of new projects.

War in Ukraine, the Carraro reaction

Despite a marginal exposure at the market level in the geographic areas affected by the conflict in Ukraine, the Group’s oversight of the current crisis is constant these days. There is concern, in particular, about the long-term effects that the situation may have on the already difficult dynamics related to raw materials and energy costs as well as on a general slowdown in economic growth. This is a complex context that currently sees the Group’s reference markets confirm their solidity, both in the agricultural and earthmoving sectors, with a 2022 portfolio expected to grow further compared to the previous year. Given these prospects, the hiring programs for new employees in the Group continue and by 2022 it is estimated that more than 70 people will join the Italian plants.

The comments

“This is an important growth that testifies to the solidity of our Group and our reference markets. In these two years we have further expanded the relationships with our customers, entering new application areas,” commented Enrico Carraro, President of the Group. “Among all, think of the Ineos contract, relating to the axles for the Grenadier off-road vehicle, which this year will come alive with the start of production at our plant in Maniago. Or the strategic agreement with Claas, one of the world’s leading manufacturers of agricultural machinery, which on the one hand will lead us to expand the range of specialized tractors that we already manufacture for this brand and which on the other hand will allow us to increase the volumes of axles and transmissions”.

“2021 also confirms a profitability of optimal values in significant growth compared to both 2020, with over 69% increase, and compared to 2019, with over 29%,” Enrico Carraro continued. “These data are even more significant in the face of a contingency that has seen us face significant increases in the prices of raw materials, the scarcity of the same, the increase in the cost of transport and energy”.