23.04.2014

Manitou gathers pace

Manitou has reported a seven percent rise in first quarter revenues, to €291.3 million, while the company’s backlog/order book increased 12 percent to 8,700 units.

The higher sales were led by the Rough Terrain Handling division, largely European produced telehandlers and aerial lifts, where revenues increased 17 percent to €200.9 million. The Compact Equipment division/Gehl declined seven percent to just over €60 million, due to a comparison with high sales last year and bad weather disrupting shipments this year. Finally the industrial division slipped 14 percent to €30.1 million - however if the Toyota business is excluded from 2013’s numbers the division posted a 10 percent gain.

Geographically Northern Europe led the growth with sales up 29 percent to €102.9 million. Southern Europe, which includes France, also began to bounce back, improving seven percent to €104.3 million. The Americas dropped 13 percent to €56.5 million, while Asia Pacific slipped eight percent to €27.6 million.

Chief executive Michel Denis said: "At a constant scope and exchange rates, first quarter sales increased by 12 percent compared to 2013, which was relatively low. We are closing the quarter with a large order backlog, especially in the Compact Equipment division.”

“In the construction sector, the business evolved favourably, with demand from rental companies remaining strong, despite the unusually intensive cold wave that hit North America. In the agricultural sector, the moderate growth in the business illustrates an environment with a higher level of uncertainty.”

“At the operational level, the Compact Equipment division is organising a ramp-up of its production lines to meet the current level of its backlog. Finally, the teams are continuing to provide significant development efforts for the changes in product standards. After the 2013 launch of the first models with Final Tier IV engines by the CE division, it is the RTH division's turn to introduce its first model designed for Euro IV engines for intensive applications in the construction and industrial sectors."

Vertikal Comment

An encouraging set of numbers from Manitou, particularly in Southern Europe, however the half year numbers will be more indicative of how things are really going. The company still has much to do to return to financial health, but it does appear to be making solid progress. This interim report makes no mention of margins and likely profitability.