27.04.2022

Mixed result from Manitou

Aerial lift and telehandler manufacturer Manitou has published its first quarter sales numbers.

Total revenues for the three months to the end of March were €450 million, down four percent on the year. All of the decline came from sales of new equipment which declined nine percent to €355 million, while parts and services revenues improved 15 percent to €95 million.

The company booked €637 million of new orders in the quarter - down from €815 million last year - taking the order book to a new record of €3.3 million, compared to €1.3 million at the end of March 2021. The company said that supply chain and ongoing pandemic issues had an impact on business at the beginning of the year but has now set up the necessary production resources to achieve the expected production volumes. It is maintaining its forecast for full year revenues to increase 20 percent on 2021. However, it has abandoned its operating margin guidance, given ongoing uncertainties.

Geographically revenues in Southern Europe, which includes France, slipped one percent to €147 million, while shipments to Northern Europe dropped 15 percent to €163 million. The Americas improved three percent to €89 million, and Asia Pacific revenues jumped 20 percent to €50 million.

Chief executive Michel Denis said: “In the first quarter, the group achieved €450 million revenues, down four percent on 2021. This withdrawal is the direct consequence of the health crisis at the beginning of the year and the difficulties in sourcing components, which slowed down deliveries of finished products. Less affected by these tensions, the Services and Solutions division registered a record revenue growth of 15 percent compared with the same period in 2021. From a commercial point of view, order intake for the quarter remains dynamic in almost all sales areas and business sectors.“

“To date, the depth of our orderbook and our operational performance allow us to confirm our revenue growth forecast for 2022 of more than 20 percent compared to 2021. On the other hand, the impact of the conflict in Ukraine on the component, steel and energy prices is too volatile for the group to be able to confirm its current operating margin forecast for the year.”

Vertikal Comment

Manitou has seemed to suffer more than most with supply chain issues over the past year or so but has spent a great deal to remedy the situation, with extra inventory etc, all of which takes time.

The company is relatively conservative when it comes to its forecasts so we can expect the 20 percent increase to be achieved, but most likely exceeded. We would be surprised if it does not achieve full year sales in the region of €2.3 billion, a new record, which would also still leave it with a substantial order book to take into 2023.

All in all, not as negative as the top line revenue numbers might have at first suggested.