12.02.2019

Strong fourth quarter sales for Haulotte

Haulotte has published its full year revenue numbers, with fourth quarter sales at the highest level since 2007.

Looking first at the full year, total revenues were 11 percent higher at €555.9 million, made up of new machine sales of €488.9 million, 13 percent higher than for 2017, while parts and service revenue improved three percent to €50.9 million and rental revenue declined 14 percent to €16.1 million. Haulotte says that its order book at the end of the December was at its highest level since 2007.

Geographically Europe was the stronger performer with revenues up 18 percent, while the Asia/pacific region recorded an eight percent improvement, driven by higher sales in China and Australia, partly offset by slower sales in the Middle East.

North American sales were six percent higher driven by higher sales of Haulotte platforms – up 13 percent – offset by slower sales of BilJax scaffold products

South American revenues outside of Argentina, improved significantly, albeit from a low base, rising 121 percent on the year,

Fourth quarter revenues totalled €142 million four percent up in the same quarter in 2017. The company says that sales of new machines were 16 percent higher, while parts and service revenues improved five percent and rental slipped seven percent, largely due to challenges in Argentina.

The company says that the revenue growth has not been sufficient for it to maintain its profit levels, thanks to unfavourable mix of customers and geographic sales, along with higher raw material costs, as well as higher operating costs from its new strategic plan which includes a rapid move towards being carbon neutral.

Haulotte expects the customer and regional sales mix to improve throughout this year and that it expects to achieve revenue growth for 2019 of around 10 percent, which will take revenues well over €600 million.

Vertikal Comment

In terms of revenues these results look fairly good, although the growth levels lag well behind that posted by JLG. On top of this it sounds as though none of the additional sales volume has dropped through to the bottom line, although that remains to be seen.

The company is making some very bold and brave changes investing heavily in new product development and new services. If it can keep its head above water as these changes turn into reality it we put the company in a good position to take it forward to a new level.

We will have another chance to look at all this when the company publishes its full results in the second week of March.