22.10.2015

Slower third quarter for Manitou

Manitou has reported lower third quarter revenues, although it remains up on last year for the nine months.

Total revenues year to date are €954 million, two percent higher than for the same period last year. This is mainly due however to stronger sales in the Americas along with higher Gehl/compact equipment sales and rising parts and service revenues. Revenues at the Access and Telehandler/Material Handling, division were down two percent for the period at €594 million. Compact equipment sales rose 10 percent to €195 million - with exchange rates likely to have been a contributing factor. Geographically The Americas improved 19 percent to €240 million, while Northern Europe is up one percent at €357 million. Southern Europe - while better in the quarter - remains six percent below last year’s levels for the nine months. Finally Asia Pacific fell eight percent to €90 million.

Moving on to the third quarter, total revenues were €273 million- eight percent lower than last year. of this Telehandler and Access sales were down eight percent to €162 million, Compact Equipment down 19 percent to €50 million and services up five percent to €55 million. The third quarter also saw a recovery in Southern Europe - four percent better at €81 million. All the other regions posted third quarter declines, with Northern Europe down 11 percent at €100 million, the Americas down nine percent at €65 million and Asia Pacific plunging 21 percent to €27 million.

Order intake in the quarter was also slower, falling over eight percent to €189 million, leaving the order book at the end of September 5.5 percent lower at €253 million.

Chief executive Michel Denis said: "The business experienced a slowdown in the third quarter as a consequence of a pause in the investment activities of rental companies in the United States, a recession in the Asia-Pacific-Africa region and the impact of the crisis in Russia. The lack of visibility was accentuated by the recent market turmoil and drove purchasers to delay their investments. The Services and Solutions division continued its growth (+ 5% during the quarter and +7% over the nine month period). The business activity of the last quarter will be sensitive to the agricultural seasonality in North America and to the purchasing opportunities of rental companies. The difficult business environment was also reflected in the order intake and order backlog at the end of the quarter which leads us to expect sales growth of around three percent for 2015 for a confirmed recurring operating income of approximately 4.5 percent."

Vertikal Comment

These numbers are largely in line with the market as a whole where sales in both North America and Northern Europe pausing as rental companies became nervous. It is good to see that the more buoyant feeling that we have detected in Southern Europe is translating into results

Given all the uncertainties this year if Manitou ends the year up three percent it will not be too bad at all. The company has actually made more progress than that number suggests, but at least it remains positive. The company does not publish profitability numbers for the quarter, but margin estimates for the year look a tad meagre.