30.01.2019

Record revenues for Manitou

Manitou has posted its fourth quarter and full year revenues, breaking its previous records in all areas.

Full year sales were €1.88 billion, an increase of 18 percent on 2017, with strong growth in all three divisions. The Material Handling business, which is largely made up of telehandlers and aerial work platforms was 18 percent higher at €1.29 billion, while revenues from the Compact Equipment division - largely Gehl jumped 28 percent to €314 million. Finally sales from the Services and Solutions division – parts and service etc.. were 10 percent higher at €276 million.

Geographically Northern Europe achieved the most significant sales growth, rising 26 percent to €757 million, followed by the Americas where sales increased 20 percent to €350 million. Southern Europe - which includes France – was 11 percent higher at €579 million, while Asia Pacific was 15 percent at €199 million – partly due to the addition of the Terex construction business in India – now Manitou Equipment India. The order book/backlog as of the end of December was almost 45 percent up on the same point last year at just over €1 billion – equating to an average of around six months shipments. As result the company has forecast at least 10 percent growth for 2019, which would take revenues to more than €2 billion.

Moving on to the fourth quarter total sales increased 21 percent to €523 million, compared the same period last year. This was broken down as follows:
The Material Handling & Access division had sales of €364 million a 21 percent increase, thanks partly to currency factors, but mostly to increased order intake and shipments. Sales of aerial lifts in particular have reached a point where the company has approved a €26 million investment in additional production facilities at the Candé aerial lift plant, which should be completed by the end of 2020.

The Compact Equipment division posted revenues of €88 million, up 29 percent, thanks to ongoing growth in rental company sales in the USA. Sales of parts and services etc… were 12 percent as the division invests in additional resources in new services, which it hopes will grow even rapidly as telematics and increased machine connectivity comes on stream.

Geographically the Americas posted the highest percentage growth with sales up 29 percent for the quarter at €102 million, while sales in Northern Europe improved 27 percent to €208 million. Southern Europe - which includes France – was up 17 percent to €160 million, and finally Asia Pacific was slightly better than flat with sales of €52 million, three percent up on last year.

Chief executive Michel Denis said: “2018 is again a record year for the group. Revenues of €1,884 million, representing like for like growth of 19 percent compared to 2017. Cumulative order intake of €1.9 billion, and an order book that, for the first time in our history, has crossed the €1 billion threshold. Overall, the group will have grown by around 40 percent in just two years.”

"Looking back at the last quarter of 2018, we have made progress in all regions, particularly in Northern Europe and North America. By sector of activity, it is in construction that our development has been the strongest, a sector in
which our performance with rental companies has been very strong on all continents. The dynamics in agriculture and industries were also excellent. Year end order intake reached an exceptional level. Based above all on solid fundamentals and market confidence, they were amplified for some customers, by an anticipation linked to the extension of our delivery times.”

In order to meet our customers' requests, we have succeeded in optimising our production rates. This has allowed us to replenish certain stocks of mid range products in order to regain a certain commercial flexibility as from the first quarter. Aware of the current uncertainties regarding the accumulation of risks that could potentially trigger an economic slowdown, we remain focused on our development objectives while ensuring that we are still agile in the event of a turnaround.”

“Although cautious but confident, the depth of our order book allows us to anticipate, all other things being equal, a revenue growth outlook for 2019 of around 10 percent compared to 2018".

Vertikal Comment

Manitou has really re found its ‘mojo’ at least in terms of sales and confidence, its new products are finding a receptive market and its acquisitions are beginning to pay off, in some cases following years of integration challenges. It still has plenty of room to grow, both in its traditional product sectors, and in terms of new products and further geographic expansion.

Its aerial lift business, which for many years struggled to reach sustainable and consistent volume levels, has really begun to take off, with annual sales now exceeding €200 million. The planned expansion in production capacity, plus a number of new models it has in the pipeline, will help this continue on upwards, giving it sufficient volumes to compete with the market leaders. While the company has estimated 10 percent higher revenues for 2019, barring a serious economic slowdown, we expect that that actual number will be higher taking revenues to well over €2.1 billion.

A key factor in achieving the higher revenues, has been sorting out the supply chain issues which held back growth and dogged production efficiencies last year. It has done this partly though increasing component inventory, which involves more capital and internal logistics, so it will be interesting to see how the higher sales volumes translate into profitability. The company is due to issue its full year results in early March.

Another very positive set of numbers.

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Production is flowing smoothly at Manitou as it increases capacity