01.04.2009

Manitou provides final 2008 numbers

Telehandler and access manufacturer Manitou has issued an updated financial bulletin which includes it full year profits along with an update for 2009. As already reported group revenues rose 1.4 percent to €1.28 billion, €20 million of which came from Gehl. Most of the damage came in the fourth quarter - sales at the nine month stage were still up 6.6 percent.

In terms of profit, EBITDA was down 15.7 percent to € 128 million, or without Gehl, down 12 percent to €133 million. Net after tax profits before taking a €52 million goodwill write off at Gehl were down 35 percent to €56 million (down 28% without Gehl) After taking the goodwill impairment net profits were 95 percent lower at €4 million.

As already reported Gehl has breached its loan covenants, which has resulted in its banking syndicate demanding repayment of its loans as of the end of March. As a result Manitou says that Gehl may file for protection under Chapter 11 of the bankruptcy code.

However Manitou has stressed that this is by no means certain and that it is pursuing discussions with its banking partners in both the United States and Europe with the aim of securing the Gehl financing while continuing to contain the risk in the United States.

The company says that the drop in consolidated sales in 2009, including Gehl, could reach 40 percent, which would result in an operating loss for the year.

In response it has established and rolled out a strategy plan (Plan Performance 2011) which, it says, should enable it to weather the crisis and preserve its capacity to finance its business when the recovery occurs.

The implementation of this plan, whose cost is estimated at €20 million for 2009, will, it says, improve cash-flow generation and reduce net debt by close to €150 million by the end of 2009. The plan is based on a significant lowering of the company’s breakeven point

The plan will result in the loss of around 650 jobs worldwide, out of a total workforce of 3,300 at the end of 2008.