31.07.2018

Strong first half for Manitou

Manitou has published its results for the first six months of the year, with solid increases in both revenues and profit.

Total revenue for the first half was up 17 percent to €941.5 million, with a pre-tax profit of €59 million - up 31 percent on the year. The Material Handling and Access division represented more than 69 percent of the total at €653.4 million, 16 percent up on the same period last year, with operating profits up 22 percent to €48.2 million.
Revenues at the Compact Equipment division - largely Gehl – were 29 percent higher at €151.5 million with an operating profit of €3.6 million, compared to a loss of €2.2 million last year.
Finally, sales of parts and services were up nine percent to €136.6 million with operating profits six percent higher at €11.2 million.

Geographically sales in Southern Europe – including France - were three percent higher at €301 million, while Northern Europe grew by 30 percent to €370 million, the Americas were up 15 percent to €169 million and Asia/Pacific improved 25 percent to €102 million. Half year pre-tax profits for the company as a whole were €59.4 million a jump of 33 percent on the same period last year.

In the second quarter, overall sales were €480 million, a 13 percent improvement on 2017, with Material Handling and Access rising nine percent to €331 million, Compact Equipment up 33 percent to €80 million and services 12 percent higher at €69 million.

Geographically South European sales in the quarter were flat at €144 million, while Northern Europe shot up 23 percent to €195 million. Revenues un the Americas grew 24 percent to €92 million and Asia Pacific by four percent to €49 million.

The company is now forecasting revenue growth in 2018 of around 15 percent, which would take it to roughly €1.8 billion. Net debt at the end of June was 17 percent lower at €79.8 million.

Chief executive Michel Denis said: "The group achieved another record quarter and revenue growth of 17 percent compared to 2017. Business was buoyant in all geographies and in our three markets of construction, agriculture and industries. Order intake for the second quarter was sustained and increased compared to the second quarter 2017. if we exclude the exceptional effects generated in France by the end of the tax law on equipment over amortisation in April 2017.”

“In this very favourable environment, the Manitou group continued to expand its products range, gain market shares and increase its production rate. Growth made great demands on the operational chain, which remained tense but under control. The increase in production rates enabled us to accelerate the reduction of the depth of the order book, something we want to continue, in order to be more responsive to our customers. All these factors led to close the semester with a current operating income of 6.7 percent of sales revenue, an increase of 70 basis points. At constant scope and exchange rate, current operating income was seven percent of sales revenue.”

“Business prospects remain positive, with markets that we still see well oriented in all regions. At this stage, the impact of changes in import duties in certain countries resulted in an increase in production costs in the United States which, like all American manufacturers, we pass on to our customers.”
“The performance achieved in the first half year, the favourable economic context and the size of our order book allow us to confirm our expectations of sales revenue growth of more than 15 percent for the financial year, and a growth in current operating income of around 80 basis points compared to 2017, or around 6.8 percent."

Vertikal Comment

An excellent set of numbers from Manitou, although static sales for Southern Europe is a little surprising considering how most countries are finally making positive progress. It is good to see progress at the Compact Equipment division continue to rebound, with strong prospects ahead as the Indian business acquired from Terex contributes to the division.

The company is also seeing the additional revenues translating to strong rises in profitability overall, allowing it to pay down its already modest net debt and invest in further growth.

A very positive first half