26.04.2023

Record start for Haulotte

French aerial lift manufacturer Haulotte has reported a strong start to the new year, with a record first quarter.

Total sales for the quarter to the end of March jumped 45 percent compared with last year to €196.3.

This was made up as follows:

New equipment sales: €172.6 million - +50%.
Services: €17.9 million - +15%.
Rental:l €5.8 million – + 12%.

Geographically

European sales increased 35%, with improvements in all markets apart from Russia, where Haulotte’s business is at a standstill.
Asia-Pacific sales broke previous records with a 38% increase.
North American sales jumped 72%, largely driven by higher sales of aerial work platforms, which more than doubled compared to the same period last year.
South American revenues grew 38% driven by sales in Brazil.

In spite of the strong start to the year, in terms of sales, the company will not be able to meet the financial ratios stipulated in its loan covenants, which are due for review at the end of June. Haulotte says that it will make a new waiver request in the next few days, as it agreed with all its lenders when the last waiver was obtained at the end of December. The objective is to have an agreement in place before the end of June.

Full year forecast

Haulotte says that activity in the first quarter has encouraged it to confirm its sales growth forecast of more than 20 percent for the full year 2023 and the return to historic operating margins.

Vertikal Comment
This looks like a very good start for Haulotte, although it is still struggling with supply chain issues and higher costs that it has not been able to pass on yet, something it shares with most of its competitors. It sounds as though these pressures are beginning to ease for Haulotte, and it may well end up with a decent full year.

If the company can ramp up production at a faster pace than its American competitors, there are plenty of opportunities to win new business. Although it is also competing with growing competition from Chinese manufacturers many of which have substantial inventories of new product sitting in European warehouses, ready to deliver. The company has great new products, and needs to focus on brand building, and spreading the message on its new products, while looking after customers by being really easy to deal with.

In other words, good old fashioned sales and marketing.