13.03.2019

Haulotte results

Haulotte has reported a small improvement in pre-tax profits, following publication of its revenues last month.
As forecast Haulotte reported lower operating profits,See Strong fourth quarter sales for Haulotte but saw an improvement at the pre-tax level

As already stated total revenues were 12 percent higher at €558 million, but operating profits slipped 18 percent to €30.1 million. The negative numbers are, according to the company, due to “unfavourable effects of customer and geographic mix, higher component prices, and higher fixed costs resulting from the implementation of the company’s new strategic plan.”

However pretax profits for the year were five percent higher at €22 million. Net debt increased by €63.9 million during the year due to “planned inventory growth at the end of the year, to enable a positive response to the sharp increase in the order book.”

The company is also optimistic for 2019, its current order book/backlog is said to be at the highest level since 2007. This and the “continued strong commercial activity should enable the group to post sales and current operating income growth of around 10 percent in 2019.”

Vertikal Comment

The company actually had a fairly good year, which is reflected in the sales growth, but not particularly in the bottom line. This is due to a number of things as it points out, possibly including a shift in US sales as sales of scaffold and other high margin Bil-Jax products to higher sales of Haulotte platforms.

The company is focusing clearly on the longer term at the moment and not worrying too much if this does not go down too well with some institutional shareholders. It is right to do so, as long as it has a clear strategy.
Expect 2019 to be a better year, but still a year of transition, leading to stronger years beyond 2020-/2021.