17.07.2014

Manitou continues upward trend

Telehandler and access equipment specialist Manitou has published its sales numbers for the second quarter and half year.

Total sales for the first half were up nine percent to €642 million - growth would have been 13 percent at constant exchange rates. The Telehandler and access division achieved sales of €449.2 million, 13 percent higher than in the same period last year. The Gehl division improved five percent to €133.4 million, following a slow start to the year, and finally the Industrial division, still suffering from the termination of the Toyota contract, was down 13 percent to €59.3 million – on a like for like basis sales improved one percent.

Moving on to the second quarter, total revenues improved 10 percent to €350.6 million, the Rough Terrain handling division boosted sales by 11 percent to €248.3 million, with much the increase coming from the UK, where sales to the rental sector were particularly buoyant.

Gehl posted the largest gain, in percentage terms, up 17 percent to €73 million, while the industrial division declined 11 percent to €29.2 million.

Geographically Northern Europe led the way in the quarter, up 21 percent to €136.1 million, thanks to the UK, while Southern Europe declined three percent to €102.9 million. The Americas were up four percent to €75.4 million while the rest of the world edged up four percent to €36.1 million.

Order intake for the quarter included 7,270 units, nudging the backlog – in terms of units - to 7,300 The company now says that it expects full year revenues to be around five percent higher than last year, compared to its original forecast of being flat. It also expects this to translate into higher profits.

Chief executive Michel Denis said: "We're pleased with sales in the second quarter which greatly exceeded last year's second quarter sales and permitted us to close the first half with nine percent growth compared to June of 2013. The market was dynamic in Northern Europe and the US which offsets the regions impacted by tensions such as Russia and South America.”

“Growth was highlighted in the construction business among the customers of rental companies, especially in the UK, where there was a recovery with especially strong growth. On the other hand, the agriculture business as a whole recorded a slowdown in order intake, the impact of which should be felt in the second half. The industrial sectors evolved with contrasted trends, especially in the mining business which is still sluggish and industrial handling which showed sustained growth, confirming the success in that sector of our new range of MI forklift trucks.”

“The performance achieved in the first half leads us to upgrade our outlook for 2014 to a sales increase objective of approximately five percent, versus 2013 as compared to our previous outlook of stable sales, and a current operating income between 2.8 and 3.3 percent, up 100 to 150 basis points compared to 2013 (versus 50 to 100 points previously forecast)."

Vertikal Comment

Manitou has put in a better set of numbers than most expected and in spite of concerns over sales to the agricultural sector looks set to continue the trend in the second half. While some parts of the business still look a little fragile, there is a good chance that Manitou will exceed even its latest more optimistic forecasts.