06.03.2018

Manitou profits jump 36%

French telehandler and aerial lift manufacturer Manitou has published its final numbers for 2017.

The sales revenues were already covered earlier in January when the company released them Manitou Click here to see Manitou gathers steam

Total revenues were 19 percent higher at €1.59 billion, while pre-tax profits jumped more than 36 percent to €87.48 million.

The key Material Handling and Access division saw revenues rise 21 percent to just under €1.1 billion with an operating profit of 76.1 million – up 15 percent on the year.

The Compact Equipment division – mostly Gehl – saw sales rise 20 percent to €224 million with the business just squeaking back into black ink with a profit of €300,000 compare to a loss of €6.2 million in 2016.

The Service and Solutions division saw revenues rise 12 percent to €252 million, while operating profits increased 35 percent to €19 million.

Chief executive Michel Denis said: “The group closed the financial year 2017 with a 19 percent rise in revenues, having also strengthened our sales positions, expanded our operations outside France with the acquisition of two entities in India and Australia and lastly, having improved further our financial profitability. A year during which we have enjoyed the full and unwavering commitment of all our teams and partners. Recurring operating income increased by 35 percent to reach six percent of sales revenues, hitting the target we set ourselves in our 2014-2018 roadmap a year ahead of schedule. I also note that, excluding exchange rate impact, this profit rate is 6.5 percent of sales revenues.”

“We were also pleased to see a return to profitability last year for the Compact Equipment Products division after two difficult years and the remarkable financial performance of the Services and Solutions division, which is now the group's top contributive division.”

“The large size of our order book and the ongoing favourable market conditions mean that we are organising ourselves to continue to ramp up production operations at all of our sites, with the supply chain conditions occasionally strained and remaining inflationary. The full effects of this acceleration will be visible in the second half of the year.”

"All of these elements enable us to predict for 2018, at constant exchange rates, a growth in sales revenues above 10 percent and an improvement in recurring operating income of around 50 base points, equivalent to approximately 6.5 percent of sales revenues.”
“Our vision is that by 2022, the Manitou group will strengthen its leadership position by providing innovative and cutting edge solutions across the globe and by expanding its range of products and services. Constantly adding value for its customers, Manitou group will continue expanding its commercial presence to increase its market share and deliver sustainable growth.”

“By boosting our geographical coverage and innovation, combined with the expansion of our ranges of products and services, we should be able – all other things being equal – to generate higher growth than market trends. This new development framework leads us to define our recurring operating income target at more than eight percent of our sales revenues in 2022, an exciting challenge that all of the teams are already working towards.”

Vertikal Comment

As we have already said in the revenue announcement Manitou is really beginning to gain some real momentum, and looks set for a good few years of positive progress.