05.09.2017

Haulotte up 10

Haulotte has published its first half results, with revenues up 10 percent, but net profits slipped back during the period.

Total revenues were €264.6 million, 10 percent above the same period last year, made up of an 11 percent rise in new machine sales to €225.5 million, a 17 percent jump in the remaining rental business to €14.9 million and a two percent improvement in services revenue to €24.2 million.

Most of the growth came from the European region – up 19 percent, with a seven percent increase in the Asia-Pacific region while sales North America declined 13 percent, with a sharp drop in US scaffold sales partially offset by higher sales of aerial lifts. South America was three percent due to the significant decline in the Mexican market.

Pre-tax profits declined 36 percent to €7.73 million due mainly to exchange losses, higher debt costs and risk provisions. Operating profit without the exchange factors was 53 percent higher at €17.4 million. Higher margins came from the higher sales volumes - in spite of a significant increase in raw material prices over the period - and ag improvement in the profitability of bother Service and Rental operations.

The also managed to reduce its net debt by a further €14.8 million and has increased its full year revenue growth forecasts from five percent to close to 10 percent.

Vertikal Comment

This is a decent set of numbers from Haulotte, although not as good as in the first quarter. We had thought that the it might benefit more from the pick up in major rental company sales, but a good deal of that would have depended on how much inventory it was carrying at the start of the period as it still imports a good portion of its aerial lifts.

Having said all this the company is keeping ahead of the two market leaders in terms of revenue growth, but lagging behind Skyjack. However with the market in the Euro Zone picking up rapidly Haulotte stands to benefit significantly, particularly in Southern and Eastern Europe where it has a strong base.

If I was a betting man I would not be surprised to see the company beat its 10 percent growth forecasts.