19.07.2011

Manitou up 45%

French based telehandler manufacturer Manitou has posted its half year revenue numbers which show overall sales climbing 45 percent to €561.6 million.

The bulk of the growth is driven by its Rough Terrain Handling division –largely telehandlers - which also grew by 45 percent to €397.3 million. The industrial material handling division reported revenues of €73.7 million 25 percent higher than last year, while compact equipment sales – largely US based Gehl – were €90.6 million, an increase of over 67 percent.

The first quarter's momentum was maintained through the second quarter with overall sales up 31 percent to €295.3 million, made up of a 30 percent increase in telehandler sales to €205.7 million, while Industrial was up 16 percent and compact equipment 51 percent to €49.8 million.

Geographically the America’s and Rest of the world grew the fastest in percentage terms, however Europe still represents 76 percent of all Manitou sales, of which 32 percent comes from France. The Americas now represents 15 percent and rest of the world nine percent.

The company says that while its backlog remains at the high levels it reported earlier this year with almost 10,000 units on order, the pace of order intake has calmed somewhat as dealer inventory rebuilding and other post recessionary factors start to drop out. In spite of this much of its capacity in the second half is already sold out.

Chief executive Jean-Christophe Giroux said: “It’s been a very busy quarter, with lots of operational issues but the satisfaction of confirmed growth in the end, driven by the Compact Equipment division and markets outside Europe. Our plants and workforce have been adjusting daily to supplier shipments and yet have been able to already deliver a significant ramp-up in manufacturing volumes over the first quarter.”

“Our backlog is starting to ease out a bit which will help from a lead time perspective. At the same time, order intake has shown the first deceleration in two years, with a slowdown of the post-crisis ‘catch-up effect’ and some renewed doubts from mature countries regarding general world economics. Order intake in the second half will be a driving parameter to assess the slope of the new growth cycle over the coming years. As for 2011, we believe our backlog at the end of June will secure second half revenues close to those of the first.”

With an overall growth for the year of around 30 percent or more, growth over 2010. Most of our efforts will continue to revolve around EuroIIIB / iTierIV migration and EuroIIIA engines. With all things being equal, we believe we can improve our operating margin with a new four to five percent target for 2011.”

Vertikal Comment

Manitou’s recovery continues at a very respectable pace, the speed of growth at its Gehl operation could yet turn what looked like a crazy deal at the time – especially from a point six months on – into a move that took the company to new levels in terms of revenues, profits and market coverage. The company is only just beginning to get a glimpse of the potential it has if it can properly integrate the businesses and cross sell.

Manitou still appears to be struggling more than most in managing its supply chain to keep pace with the growth in order intake. Some of this will be down to the fact that it buys in more of its components than competitors like Merlo and JCB, while some of it may be down to the fact that it has a case to make to public shareholders and is thus more open about these problems? With the edge coming off the frenetic order intake of the past 12 months, it may have a chance to catch up with its supply issues in the coming months.

In the meantime the growing interest in ultra compact telehandlers ought to play into its hands, it has more experience at this end of the market than most and some products that have so far not really been taken seriously, such as the Twisco and Buggiscopic. Perhaps their time has come? Manitou will need to market its smaller products more effectively though if it is not to lose out to the ‘Johnny-come-latelies’ to this market who seem to suggest that they have created a new sector.

All in all an excellent result from Manitou which bodes well for the future.