26.09.2006

Haulotte confirms first half numbers

Haulotte has issued its details results for the first half of 2006, revenues were up by 26 percent to €236.9 million, while operating income jumped by 41 percent to €40.3 million.

Profits before tax were €39.6 million an increase of 43 percent. Net profit was a very healthy €26.8 million, nicely over the 11 percent net return that the company forecast.

The statement issued with these numbers said that production costs had been reduced, assisted by stable raw material costs. This helped to more than offset an increase in its fixed costs, put in place as part of its expansion and restructuring.

It also helped offset the reduced profitability from sales within the dollar zone, caused by the currencies weakness.

Orders as of August 31 are up by 50 percent on the same period last year.

Haulotte is pressing ahead with its investment in two new production facilities that are costing around €10 million. The project includes a factory in the Cantabria region of Spain dedicated to its “diversification products” including excavators and a Haulotte designed telehandler range. (Its agreement with Faresin has now ended, leaving Haulotte without a telehandler product at present)

And a second plant in Romania dedicated to aerial platforms. The tow facilities will, says Haulotte, add 7,000 to 8,000 units worth of production capacity by 2009.

Vertikal Comment

Haulotte continues to perform exceptionally well with after tax profits well above those of its main competitors (although Genie’s net profits after interest and tax are not visible), The company manages to achieve this in spite of offering prices that are generally acknowledged to be keener than its main rivals.

The company is now expanding its overhead and by necessity and size drifting away from its mean and lean management structure, in order to maintain what is now becoming substantial year on year increases in volume.

It is almost certain to pass annual revenues of €525 million this year, possibly sailing past the €550 million level which would equate to around $700 million.

However it is not gaining on the two market leaders, with Genie reporting a 50 percent increase in sales (Although some of which was down to the shifting of telehandler revenues into Genie) and JLG having just reported a 30 percent increase in its aerial lift sales which hit almost $1.2 billion without after sales support, rental or financial service revenues.

Haulotte's greater aspirations on the world-wide access stage are still suffering from its inability to crack the North American market. The low dollar, which looks set to remain with us for a while is not helping them.