17.02.2009

Haulotte down 27%

Haulotte has posted its preliminary full year results for 2008, they show revenues down 26.7 percent to €451 million, like for like fourth quarter sales – eliminating revenues from Lev in 2007 and Bil-Jax revenues in 2008 - were down 78 percent to €64.4 million. Bill-Jax added revenues of €9.5 million taking the actual fourth quarter up to €73.9 million compared to €193.8 million in the fourth quarter of 2007

Equipment sales for the year declined 31 percent, while Service income increased by 24 percent while rental revenues were flat.

Sales outside Europe increased by 40 percent compared to 2007, accounting for 23 percent of total sales compared with 11 percent last year around 60 percent of which was due to the Bil-Jax acquisition.

The company said: “In an environment marked by the economic slow down and the lack of visibility regarding 2009, making forecasting difficult, the Haulotte Group has taken the necessary measures to adjust its production and adapt its costs of structure to protect its cash flow future.”

The full results will be published in mid March.

Vertikal Comment

Haulotte’s year to date sales are marginally below those of 2006, but well above 2005, when the company managed to make a 17 percent return. The more distressing news is its fourth quarter performance, although the fall-off is not dissimilar to that experienced by the other full-line manufacturers.

The increase in service revenues will provide some comfort in that they normally carry a higher margin, and have considerable potential for further growth as rental companies age their fleets. It will also help cover the company’s extensive sales and support organisation.

One advantage that Haulotte has over its two main competitors is its lower central overhead, and its potential to make faster decisions, by not needing to report through a diversified holding corporation.

Haulotte was a net beneficiary of the 2001 to 2003 slow down by ramping up and investing more quickly once they sensed the market turning. The challenge will be to repeat that this time round.

It also has a rental operation within the company, which it could ramp up if rental companies continue to hold off on capital expenditures.