31.07.2024

Slow down at Manitou

French telehandler and aerial work platform manufacturer Manitou, has published its first half revenues. The results show stagnating or falling sales, but a very strong pick up in profitability.

Year to Date
Total revenues for the six months until the end of June were marginally higher than at the same point last year at €1.41 billion. Order intake however was substantially lower cutting the order book by more than half to €1.43 billion.

Operating profit however jumped 41.6 percent to €126.3 million driven by higher prices and improved efficiency, including a benefit from the acquisition of two Italian suppliers, at the end of last year, which contributed €7 million. Net debt was 4.2 percent higher at €424.7.

Sales by division
New equipment sales €1.2 billion +0.1%
Parts and services €203.9 million +1.9%
Total Revenues €1.41 billion +0.4%

Sales by region
Southern Europe €497 million +5.2%
Northern Europe €515 billion +1.2%
The Americas €268 million (-11.8%)
Asia Pacific &ME/A €127 million +8.8%
Total Revenues €1.41 billion +0.4%

Second Quarter
Sales by Division
New equipment sales €620 million (-2.9%)
Parts and services €101million +3.8%
Total Revenues €721 million (-2%)

sales by region
Southern Europe €259 million +6.1%
Northern Europe €252 million (-4.7%)
The Americas €144 million (-14.4%)
Asia Pacific &ME/A €67 million +11%
Total Revenues €721 million (-2%)

Order intake in the quarter was €86 million less than a third of €287 million booked in the same quarter last year.

Chief executive Michel Denis said: "The group closes a very good half year in a context of contrasting activity and outlook. Sales for the first half were stable compared with the first half of 2023. Driven by stronger than expected momentum in Southern Europe, growth in Europe offset the decline in North America. Our ambitions for further growth in North America have been compromised by a lack of operational fluidity and by a much slower than expected ramp-up of our US industrial capacities, both of which we are gradually rectifying.”

“Our first half financial performance continues to benefit from the improvements we have been making over the past 18 months. The delayed effect of the realignment of sales prices with raw material prices achieved throughout the previous year is now bearing full fruit. This has been combined with a more favourable customer and product mix as well as reasonable control of fixed costs. All these factors helped to raise recurring operating profit for the half year to 9.1% of net sales, the highest level for the last 15 years.”

“However, this excellent performance will not be repeated in the second half of the year. In fact, the order intake dynamic remains an important area of concern, and it is too early to know its medium term direction. In addition, the disparity in the depth of the order book between product lines has led us to reduce production at most of our industrial sites. All these factors allow us to confirm our sales and recurring operating profit guidance for 2024.”

Vertikal Comment

This is a shaky set of numbers from Manitou, particularly surprising is the North American result, given how well the US market is going and the fact that the company can benefit from the tariffs in force which are pushing up prices. In terms of profitability, the company is in great shape, and hardly seems in need of proception against Chinese built competition.

However, having said that the picture may well look very different by year end.