01.09.2008

Margins hold up at Manitou

Manitou the French based telehandler and aerial lift manufacturer, has published the details of its half year results. Revenues, as already disclosed were up by over eight percent to €725 million thanks to strong sales in most EU countries, offsetting a massive fall in Spain and exchange rate erosion of its UK results.

In constant exchange rate terms revenues increased by 10 percent.

Gross margins slipped by half a percent to 32 percent of sales which translates to €232 million a 6.3 percent rise on the first half of 2007. Net after tax profit dropped by 11.6 percent to €48.5 million or 6.7 percent of sales. A portion of this was due to a steep drop in financial income and a change in consolidation of associate company profits.
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Deleayed deliveries forced Manitou to carry extra finished goods inventory into its second half

The group’s cash position at the end of the period was affected by
a €70 million increase in inventories linked, it says, to the early purchase of around €11 million worth of particular components to avoid price increases €59 million increase in finished goods inventory as customers delayed deliveries.

Outlook

Manitou says that it expects revenues to continue to grow in the eight to 10 percent range, similar to the first half, while profits will drop by 10 to 15 percent due to strong increases in raw material costs and the ongoing depreciation of Sterling.

Manitou expects current market conditions to carry over into 2009 and as a result has initiated a cost-cutting plan to preserve its profitability and
financial situation.

Click here to see more detail on first half revenues, issued in its July trading statement