30.01.2018

Manitou gathers steam

Manitou has reported a 19 percent rise in full year revenues to €1.59 billion, led by the Material Handling and Access division which posted a 21 percent rise to just under €1.1 billion, while Compact Equipment – mostly Gehl – saw sales rise 20 percent to €224 million. The Service and Solutions division saw revenues rise 12 percent to €252 million.

Fourth quarter revenue growth was even more dramatic rising 35 percent to €432 million. With the telehandler and access business reporting sales of €300 million – 43 percent higher than in the same quarter last year. Compact Equipment sales were €68 million up 31 percent, while Services & Solutions revenues were nine percent higher at €64 million. Overall order intake was 52 percent higher at €551 million, leaving the order book at the end of December at a record €709 million more than double that of 2016.

Geographically sales in Southern Europe were 18 percent higher for the year at €523 million and 36 percent up on the quarter at €137 million. Northern Europe was 21 percent higher for the year at €602 million and 47 percent up for the quarter at €164 million. Sales in the Americas were 11 percent higher for the 12 months at €293 million, while the fourth quarter came in 19 percent higher at €80 million. Finally, the Asia Pacific region reported annual sales of €173 million a rise of 35 percent, with fourth quarter sales up 26 percent to €51 million.

The company expects revenues in 2018 will rise a further 10 percent to around €1.75 billion.

Chief executive Michel Denis said: “The group ended the financial year having strengthened its market share and grown its sales revenues by 19 percent. Development was recorded in all geographical regions. In terms of sector, construction has seen the liveliest growth, driven by market momentum and strengthened activity with European and North American rental companies. In the agricultural sector, our new range of telehandlers has enjoyed even greater success. This has enabled us to strengthen our position in a market that is buoyant again.”

“Lastly, in industry, the Group has bolstered its positions in the industrial and all terrain handling equipment segments. In the quarter, our sales performance has improved, with customer orders that have continued to develop and surpass previous invoicing levels for the fourth quarter. This means that we closed the year with our order book having reached record levels, at more than €700 million.”

“The entire operational chain proved capable of coping with the inevitable tensions that arose during the rapid ramp-up in production needed to deliver the required volumes. This acceleration in activity occurred amidst continuing inflation on the cost of materials; the Group is reflecting these costs in its sales prices but is applying them over an extended period of time, given the large number of orders placed which will impact on the operating margin without jeopardising the 2017 guidance.”

“The depth of the order book and the robust state of the markets across all geographical regions and business sectors allow us to anticipate for 2018, at constant exchange rates, a growth in sales revenues of 10 percent compared with 2017 with a stronger growth on the second semester than the first part of the year.”

Vertikal Comment

This is an excellent result from Manitou which is beginning to gain some real
momentum. The company began to benefit from the launch of its boom lifts in North America, where its operation is benefiting from a more coherent structure. Its Compact Equipment division has also now integrated its new Indian operation – which it acquired from Terex half way through the year. This combines with the pick up in its core European markets.

While the company is making strong progress with its telehandlers and mast type Rough Terrain forklifts - boosted by new product launches, it is likely to find the access market becomes more challenging as both major and specialist companies step up the pace of new product launches.

That said there is a real chance that Manitou could do better than expected and exceed the €1.8 billion mark, especially if its North American business fully exploits it potential and adds some new aerial lift developments.

Another positive set of numbers