21.02.2008

Profits fall at Manitou

Manitou the worlds leading telescopic handler manufacturer has confirmed its 2007 revenues at €1.26 billion an increase over 2006 of almost 12 percent.

Operating profits totaled €131 million a drop of 3.1 percent on last year. Profits were hit by increased pricing pressures in the fourth quarter, combined with production challenges and a number of one off costs.

The production difficulties included costs associated with the delivery and replacement of defective components, the postponement by several weeks of deliveries of the new telehandler range and one off start up expenses or the company’s new parts centre.

The net effect of these was to reduce the company’s net margins by 1.4 percent which had a knock on effect to the bottom line.

Outlook for 2008

Manitou says that the first half of 2008 is looking more positive, but given the uncertainty in the economy as a whole which carries the possibility of a slowdown in Europe, it is forecasting a 10 percent growth in consolidated sales.

It expects net profits to grow in line with sales this year in spite of the negative trend in dollar and sterling exchange rates to the Euro, due to the positive impact caused by the non-recurrence of the exceptional charges recognised in 2007.