27.07.2017

Solid first half for Manitou

Manitou has reported a strong first half and second quarter in terms of revenues profits and a record order book.

Total revenues for the first half were €805 million, up 17 percent on the same period last year. This was made up of an 18 percent rise in the key telehandler, aerial lift and material handling division to €563 million, €117.1 million from the Compact Equipment division – largely Gehl, and €125 million in parts and service – up 13 percent on the year. Pre-tax profits were 29 percent higher at €45 million, with operating profits in the telehandler business up 10 percent, and over 50 percent in parts and service, while losses at the Compact Equipment division were reduced marginally to €2.2 million. Net debt at the end of June was up slightly to €95.7 million.

In the second quarter revenues improved 13 percent to €425 million, with telehandlers/material handling up 17 percent to €258 million, Parts and service up eight percent to €62 million and Compact Equipment down four percent to €60 million. Pre-tax profit was €30 million up 30 percent on the same quarter last year.

Geographically Southern Europe improved 15 percent in the first half to €292 million, and 19 percent in the second quarter to €144 million.

Northern Europe was 16 percent higher in the first six months at €286 million, and up seven percent in the second quarter to €158 million as UK exchange rates made an impact.

In the Americas the first half improved nine percent to €146 million, but slipped six percent in the second quarter to €75 million – although order intake was high.

Finally Asia Pacific was 46 percent higher in the first half at €81 million and 64 percent up in the second quarter at €48 million.


Chief executive Michel Denis said: "The group has returned excellent half-
yearly results, with strong sales growth due to a general acceleration in market activity, especially among rental companies, and the strengthening of our market share thanks to the acknowledged performance of our products and services, and the expanded range. Order intake was up in most markets, and this was amplified in France as the deadline for benefiting from the special amortisation allowance law was reached in April, as a result of which we received a large number of orders. Our order book has reached record levels, and fulfilment of them will extend beyond 2017. From an operational point of view, all of our production sites ramped up quickly, after substantial efforts and adaptation. We also saw a gradual rise in the price of raw materials and components."

“I am also delighted with the acceleration in the activity of the Services & Solutions division which, after three years' hard work, is beginning to benefit from the efforts made, and the fantastic acceleration in the Material Handling and Access division's sales. Our efforts are now set to focus on strengthening the Compact Equipment division, where important work has begun on the integration of our acquisition in India, at the same time as work on improving operational performance."

Vertikal Comment

This was strong first half from Manitou with positive news in all areas, the company is now forecasting a 15 percent jump in full year revenues with some upside potential to this. The Gehl/North American business is still fragile, but sounds as though it might do a lot better over the full year to end 2017 in positive shape.
The UK is an important market for the company so the continuing erosion of Sterling, as the Brexit situation progresses will be hurting, especially given that its main competitor JCB is sterling based. However at the same time Southern Europe is growing strongly again and looking positive for the second half.

On another issues it seems that JCB has filed a law suit against Manitou claiming it has infringed two of its patents, something that Manitou has strongly denied.

This aside the company looks set to have an excellent year with strong prospects for 2018.