01.02.2016

Manitou ends up 3%

Manitou has published its full year revenue numbers, showing a rise of three percent following a fourth quarter upturn.

Total revenue for the year, was €1.29 billion, three percent higher than for 2014. This was made up of €826.8 million for the Material Handling division- largely telehandlers and aerial lifts, up three percent on 2014, while sales in the Compact Equipment – Gehl - division were flat at €239.8 million and Services & Solutions improved seven percent to €220.5 million.

Geographically Northern Europe was way out in front, increasing five percent to €489.4 million, while Southern European sales were flat at €369.7 million. Sales in the Americas increased eight percent to €298.5 million, while Asia Pacific fell five percent to €129.5 million.

Looking at the fourth quarter total revenues were up eight percent to €333 million, thanks to a strong surge in the Material Handling - Telehandler Aerial lift – division, up 21 percent to €232.4 million, boosted by growth in both north and southern Europe.
Revenues for the Compact Equipment division plummeted 29 percent to €44.6 million, due to a drop off in third and fourth quarter order intake from rental companies in North America, then compared with a strong fourth quarter in 2014. The Services & Solutions division was up four percent to €56 million for the quarter.

Geographically Northern Europe improved 18 percent to €132.8 million, Southern Europe was 23 percent higher at €103 million, The Americas dropped 22 percent to €58.2 million and Asia Pacific improve three percent to 39.1 million.

The order book/backlog at the end of December was €299 million four percent lower than at the same point last year, but up over 81 percent on the quarter. The company expects to see a similar three percent increase in 2016.

Chief executive Michel Denis said: "The group experienced a very strong fourth quarter. European demand and business activity saw a strong increase throughout all regions especially in Russia which seems to have left its low point behind. France benefited from a slightly improved business environment and the effects of new legislation (the Macron law) on rental companies. Moreover we were able to increase our market shares in Europe. Lastly, the agricultural sector closed the period with new found growth dynamics. On the other hand, the sudden decline of the American rental market in the third quarter lasted until year-end. Given these dynamics, the group closed the period with an order book more focused towards Europe”.

“In 2015, the group moved forward in-line with its roadmap. We were able to strengthen innovation, develop our range of services and continue our commitment regarding Corporate Social Responsibility through the ‘Reduce’ plan and some improvement in the total cost of ownership (TCO) of our machines”.

“For 2016, we are expecting an increase in sales of around two percent which should be impacted by the staying power of the French and European markets, by the continued development of our services and product ranges and by increased uncertainty in the business activity of rental companies in North America."

Vertikal Comment

All in all this is a good set of numbers from Manitou, its principle business has bounced back strongly, while the downturn it saw in North America was something that others have reported, and which is likely to prove to be a short term aberration given the underlying strength of the market.

There are some unusual factors among the numbers such as the stronger than expected result in Russia and almost certainly France. The company is making progress in some areas, such as the UK where it appears to be winning some market share away from JCB which has dominated the sector, at least as far as straight frame telehandlers go. The company is also continuing to make progress with its aerial lift product range, where it is finally creating a solid market presence.

A solid result with excellent prospects for 2016.