21.03.2005

Haulotte confirms results

Haulottes official results were posted this evening and confirm the preliminary trading statement from January,(see Vertikal Net Jan 21) click here

Revenues were up 30 percent from 2003 to €285 million, this included the Lev and UK platforms results, sales of manufactured products rose by a more modest 15 percent to €254 million. Operating profits jumped 300 percent to €30 million, over 10 percent of revenues compared to around four percent in 2003.Consolidated net profit rose by 540 percent to €16 million well over the five percent that Haulotte promised.

The company’s order book at the end of February was up by 35 percent providing a solid base which it says will relate to a 15 to 20 percent increase in sales for 2005, possibly topping 335 million or the first time.

Haulotte has also commented that it is investigating the possible impact of the new International Financial Reporting Standards (IFRS) on its 2004 accounts. The new rules come into force for 2005 accounts.

Haulotte says that it expects the principal effect to be the accounting for sales of machines that are sold with finance leases. The net effect will be a significant increase in receivables and debts, as the rules are likely to prevent such sales being posted as full revenue while a contingent liability exists.

Haulotte says that its success in 2005 and beyond rests on its ability to be able to widen its customer base and develop new services.

Since January it has a new Group sales director in Segundo Fernandez, he is keen to repeat the remarkable success that he managed in Spain, where Haulotte has a dominant market share and a 60 strong team, 32 percent of them technicians offering a superior product support which helps perpetuate its market share Please register to see all images

Segundo Fernandez New group Sales Director at Haulotte

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Fernandez also reports into a new management team as Pierre Saubot steps aside in favour of Alexandre Saubot.

Haulotte has also said that it will enter the small truck mounted boom lift market in September with the launch of an 21/22 metre articulated boom and an 18 to 20 metre straight telescopic, both mounted on 3.5 tonne trucks. The company has used the expertise of its rental company LEV, Frances largest truck mounted rental company, to develop the machines which are a new sector for Haulotte. It is also planning to announce two new large boom models, a 40 metre self propelled Articulated boom and a 43 metre Straight boom.

Vertikal Comment

Haulotte are in a potentially very strong position. As they point out, the market for aerial lifts is rising rapidly with North America growing the most rapidly and lead times for the two leading producers becoming seriously extended, Haulotte has an opportunity to pick up significant market share.

The company says that it could double production without building any new facilities. The challenge will be to win over new customers, in this it will be going against Manitou, who will surely have the same aims, as well as other smaller suppliers.

Haulotte has the advantages of a full product line, apparently low cost production, at least in Euro terms and flexibility to deal. Its downside is the fact that some rental buyers still see Haulotte as a competitor in the rental market, either through its wholly owned operations or other independents that it has supported.

Our projections are that it will at least partially succeed in this and should come in at or above the top end of its revenue projections with revenues in the €350 million plus region possible. (Subject to any IFRS distortions)