30.04.2018

21% jump for Manitou

Telehandler and aerial lift manufacturer Manitou has published its first quarter revenues with a sharp rise in sales.

Total revenues for the quarter were €461 million 21 percent up on the same quarter last year, while order intake surged with the order book at the end of the period at a record high of €870 million.

Revenues for the Material Handling & Access division, which is dominated by telehandler and aerial lift sales were 24 percent higher at €322 million. With improvements across all regions, causing the company to take steps to ramp up production volumes. The increase would have been higher had it not been affected by currency changes.

The Compact Equipment division – largely Gehl equipment, achieved revenues of €71 million, 25 percent higher than the same period last year. The company said that business in North America accelerated sharply, with strong demand from rental companies. It has also benefited from sales from the Indian construction equipment business that it acquired from Terex.

The Services & Solutions business achieved revenues of €68 million up seven percent on last year. Driven mostly by increased sales of spare parts, second hand equipment.

Geographically, Southern Europe, which includes France, was seven percent higher at €157 million, while sales in Northern Europe which includes Ireland and the UK, jumped 37 percent to €176 million. The Americas were seven percent higher at €77 million. While Asia and the Pacific surged 56 percent to €52 million.

Chief executive Michel Denis said: "With a 21 percent plus increase in sales revenue, the group achieved a new quarterly record. Manitou took full advantage of favourable market trends across all geographical regions and business sectors, and of the new product ranges success. Order intake equalled the record of the fourth quarter 2017, which meant that we closed the quarter with an order book at a record high of €870 million.”

“In partnership with our suppliers, we are increasing our production rate to meet demand and reduce our delivery times. Our ramp up was tempered by the difficulties experienced by certain suppliers in supporting this effort, without jeopardising our overall growth dynamic. Above and beyond the adaptation efforts required to increase production, strong market demand had an inflationary effect on the price of raw materials and components. Manitou is passing on these increases to its customers, but over an extended period of time, because of the depth of our order book.”

“The action plans implemented to adapt Manitou to current market demand should be operational by the end of the first half of the year, which suggests the prospect of very strong activity in the second half. In view of these elements, we expect now for 2018 an annual growth in revenues over 15 percent compared with 2017 and an increment of our recurring operating income by around 80 basis points compared with 2017".

Vertikal Comment

This is a very positive start for Manitou which is really beginning to gather momentum, with all of its divisions and regions growing at the same time. This is likely to continue as its new products, many of which look like they will be real winners, come on stream. The challenge will of course be stepping up production volumes, something that it has struggled with in the past.

If it can do what it plans we may well see it outpacing the 15 percent increase in revenues that it is now forecasting. There is a strong chance that the company will surge past annual revenues of €2 billion in 2019.
A great start to the first quarter results season.