02.01.2009

Manitou issues warning for fourth quarter

Telehandler and access equipment manufacturer Manitou has issued a warning for its fourth quarter, the company says it has experienced a faster than expected fall-off in its activities over the last few weeks.

As a result Manitou is reviewing its earnings forecasts for the fourth
quarter of 2008, and is ramping up its action-plans aimed at preparing for a 2009 that is going to prove difficult, both in Europe and North America.

The company’s order-book has shrunk rapidly, reaching a level equivalent to just over two months, compared to three and a half months at the end of September.

Order intake has continued to decline, and the last five months ended 75% down on the same period of last year. Manitou says that this is due to:

- The fall in general economic activity,
- Difficulties encountered by users in obtaining finance,
- Numerous requests for postponement of deliveries from distributors and dealers who are also facing very tight cash situations.

Sales revenues in October and November were down by five and 35 percent respectively on the same months in 2007 and expects December, to be down by almost 40 percent. The result of the fall will a small loss for the quarter.

The company expects the full year to be around one percent lower than 2007. It is though predicting revenues to be significantly lower for 2009, it is therefore implementing further cutbacks, which will include:
- A reduction in temporary employees by 330
- A cut in the number of permanent employees in both Europe and USA by 117
- The introduction of short-time working in all the Group’s production units,
- A substantial reduction in overheads, and
- The containment of working capital requirements.

Commenting on the situation, Marcel Claude Braud, president and chief executive, said: "Faced as we are with this serious economic and financial crisis that affects all manufacturers of capital goods, we have no choice but to adapt quickly to the new market conditions in order to ensure the long-term survival of our Group. I have no doubts about the ability of our teams and our distribution networks to take up this challenge".