30.10.2012

Manitou up 17%

Access and telehandler manufacturer Manitou has reported third quarter revenues which are 17 percent for the nine months, with growth slowing in the quarter.

Total revenues for the nine months to the end of September were €959 million 17 percent higher than a year ago. The Rough Terrain Handling division, which includes telehandlers and aerial lifts saw revenues for the period rise 13 percent to €659.9 million, while the Compact Equipment division – mostly North America and Gehl jumped 31 percent to €177.8 million and the industrial material handling business grew 17 percent to €120.8 million.

Geographically Southern Europe was up three percent to €343.7 million, Northern Europe 14 percent to €321.1 million, the Americas up 44 percent to €179.8 million and Asia Pacific up 39 percent to €114 million.

Moving onto the third quarter, total revenues were 10 percent higher than in the same period last year at €286 million. Of this telehandlers and access sales were up just one percent to €186.9 million, Compact Equipment up 39 percent to €62.5 million and the Industrial business up 23 percent to €36.8 million. The company expects the fourth quarter to come in at similar levels to end the year with total revenues of €1.25 billion.

In the third quarter Southern European revenues fell six percent to $92.2 million, while Northern Europe was up just two percent to $90 million. The Americas jumped 45 percent to $63.2 million and Asia Pacific up 36 percent to €40.9 million.

Chief executive Jean-Christophe Giroux said: “Third quarter revenues were quite strong, leading to a full year estimate of €1,250 million for the year as a whole, up 10 percent or so on 2011."

"However, our focus is already on 2013, despite a very blurred environment. Order intake remains very volatile from one week to the next, and from one country to the next. Europe has clearly slowed down but the US is quite strong with rental coming back. Our Rough Terrain Handling division has had the adverse effect on orders of the lead time reduction effort in quarter two. As of today, we anticipate a flat 2013 over 2012, but made up of two contrasted halves.”

“We have already adjusted our manufacturing capacities to match a softer business demand in the first half without compromising the expected rebound in the second half with the anticipation of a better economic climate in Europe, and rental business coming back. We are also sustaining all our efforts to improve our operating performance, and remain focused on all possible business opportunities.”

Vertikal Comment

This is a little bit of a surprise from Manitou, although it was evident that it had dragged a lot of its order book into the second quarter, which left the third quieter than it might otherwise have been. But it needed to reduce lead times on many products if it was to avoid losing business to competitors, so this is all part of a longer term catch-up process.

While Southern Europe – its largest region – has been hard hit, the company has done well to limit the drop in the last quarter’s revenues to just six percent – suggesting an improvement in its regional market share.

Progress with the Gehl business and North America appears to be going very well and will probably help the company achieve more in 2013 than it is currently forecasting. The industrial division is also showing strong signs of life, which the company is at least partially putting down to its new industrial fork truck range. If this is so then it bodes well for 2013 when it will be free to launch the new range in France - its largest industrial market - as it becomes free of its current Toyota contract.

The company is clearly being a little cautious about 2013, but given the uncertainty in many parts of Southern Europe, this is very understandable. €1.25 billion for this year will be an excellent result and in spite of its preliminary forecasts for 2013 it has a reasonable amount of upside potential.