19.10.2017

15% lift for Manitou

Telehandler and aerial lift manufacturer Manitou has reported its third quarter revenues, with a relatively strong growth in all divisions and regions.

Total revenues for the quarter were 10 percent higher than for the same quarter in 2016, at €354 million. With nine month revenues of €1.16 billion 15 percent higher than for the same period last year. Equipment order intake for the quarter increased more than nine percent compared to the same period last year to €312 million, while the order book at the end of September more than doubled to €526 million.

The material handling and access division - which is largely made up of European built telehandlers and aerial lifts – posted a rise of just six percent for the quarter to €232 million, held back by component supply issues from some suppliers. Moving on to the nine months to the end of September, revenues for the division were 15 percent higher at €795 million.

The Compact Equipment division – mostly Gehl products and North American sales - posted revenues of €59 million, an increase of 24 percent, reflecting exchange rate factors, but also an upturn in US sales and increased exports. Nine month sales were €176 million, 17 percent higher than at the same point last year.

Parts and service revenues came in 13 percent higher at €63 million, while year to date revenues were 13 percent higher at €188 million.

If we take a look at revenues by geographic region, Southern Europe came in at €94 million, up just four percent on last year. For the nine months to the end of September sales were 12 percent higher at €386 million.

Northern Europe remains the largest market for Manitou, with total revenues of €138 million in the quarter, an increase of 10 percent on the same period last year, while nine month revenues for the region ended up 14 percent at €438 million.

Revenues in the Americas were seven percent higher in the quarter at €67 million and nine percent higher year to date at €213 million.

Finally Asia Pacific - including Australia- saw revenues for the quarter rise 28 percent to €42 million, with nine month revenues jumping 40 percent to €123 million.

Chief executive Michel Denis said: “The group saw buoyant activity in the third quarter. The order intake momentum confirmed Manitou's performance and the positive direction of the markets. Adjusted for the unusual activity generated by the developments in European engine standards in September 2016, the growth in sales revenues in the third quarter is close to what we achieved for the first nine months of the year, a performance to be commended in a context of occasional increased delivery times from some suppliers.”

“From a market perspective, construction continued to enjoy the strongest growth, with mature countries seeing continued momentum from rental companies. The agricultural sector, still affected by low food prices, maintained the same level as last year, thanks to the modernisation of the Manitou range of products. Lastly, the recovery in the prices of raw materials bodes well for improved business in the mining sector. The current depth of the order book and the positive business outlook mean that we can confirm our prospects for 2017.”

Vertikal Comment

Another good result from Manitou, with encouraging signs coming from the rebound in the Americas and Gehl, as well as in Asia Pacific. Southern Europe however was a little disappointing in the quarter, given that this region is currently undergoiig a strong recovery. However the company continues to do exceptionally well in Northern Europe which is now firmly established as its largest market- traditionally that accolade went to Southern Europe which includes France.

One issue that could threaten the pace of growth is the manufacturing supply chain holding back production of telehandlers and possibly platforms. This is an issue that has caused major problems for the company in the past, so it will need to ensure that the challenges experienced from some suppliers in the third quarter do not spread or escalate, if it is to maintain its current momentum.Union objections to the wide ranging changes that president Macron is trying to implement coudl well cause problems if they escalate.

What will be interesting is how the nine month revenues translate into profitability, but that will come later. All in all a very healthy and positive set of numbers.