19.07.2012

Manitou up over 20%

Manitou, the telehandler and access manufacturer has reported strong second quarter and first half revenues.

Overall revenues climbed 20 percent for the six months to €672.3 million, while the second quarter was up 21 percent to €356 million.

Looking at the Rough Terrain Handling division, which includes telehandlers and access equipment and represents over 70 percent of revenues. First half revenues climbed 19 percent to €473 million, although the pace increased in the second quarter with revenues up 22 percent to €251.6 million as the company ramped up production in order to try and cut the long lead times that it currently has for many product lines.

The Compact Equipment division which is largely Gehl, including North American telehandlers, saw first half revenues climb 27 percent to €115.3 million. Looking at the second quarter – sales were €61.8 million up 24 percent on the same period in 2011.

Manitou's third division is Industrial Material Handling which saw a 14 percent improvement in first half revenues to €83.9 million, although growth slowed in the second quarter to nine percent.

Geographically Manitou revenues in Europe increased over 12.5 percent, to €482.5 million, however it was very much a north south divide, with Northern Europe up 19 percent, while Southern Europe grew just seven percent – although thanks to France it just remains the larger of the two. The spread increased in the second quarter to 22 percent Vs four percent.

The Americas, driven by strong sales of Gehl telehandlers, was the fastest growing region over the six months, climbing 43 percent to €116.6 million – a trend that held up through the second quarter.

Finally the rest of the world improved 41 percent over the six months to €73.1 million with the pace accelerating in the second quarter to an increase of 55 percent.

Chief executive Jean-Christophe Giroux, said: “It’s been another great quarter, that somewhat contrasts with the general perception because we’re at a double inflexion point. First, we pulled an extra-effort to bring our RTH lead times down to acceptable market levels – a major step forward in our Re-foundation programme, both from a commercial and operational perspective. Second, despite good levels to date, we now expect a slowdown in order intake, to reflect on a global environment where negative situations - whether real or just anticipated - now generalise over positive ones. This will not materially impact our full year 2012 revenue, which we still forecast to be up 10 percent compared to 2011, still within our 10-15 percent guidance. But we’ll adjust our run rates and throughput dynamically, contrasting with the operational first half tension with our factories and suppliers. We maintain our focus on new product ramp-up, and across-the-board operational reforms that unfold according to plan. The combination of lower-than expected volumes, intense Re-foundation efforts and operational swings is likely to weigh on our full year margin, which – pending first half earnings release on August 29 – we update from 5.5 to five percent.”

“The new environment confirms that the industry is moving away from long and steep cycles to shorter and more contrasted market situations where reactivity, adaptability and flexibility will be key. It does not change our vision of the market potential, nor our own ambitions, capacity and enthusiasm to lead it and get to the next level.”

Vertikal Comment

Clearly this is another excellent result from Manitou, apart from the slight hesitation with margins, which may yet prove to be over a case of over cautiousness? The fact is that while it is rapidly adding diversity, both geographically and in terms of products - thanks largely to Gehl - France and southern Europe still represents a large slice of its revenues and business in that region continues to soften and looks decidedly uncertain.

It is though doing all the right things, in addition to pushing harder in Northern Europe and developing markets, the Americas continue to grow at a substantial pace and it has put a great deal of effort into its new industrial fork truck range which it can only start selling in France – its largest industrial market – in January after its contract with Toyota runs out.

So all said and done it is still likely to come in close to or above expectations for this year, but should be in even better shape for 2013. We will know more when it releases half year profit details at the end of August.