25.03.2004

Haulotte reports profit slump

Haulotte, Europe's largest producer of aerial lifts, has announced a huge 74 per cent fall in its net profits for the 2003 period to December 31. Revenues were up 10 per cent. The company has also confirmed the acquisition of UK Platforms.

Haulotte confrimed its previously announced provisional revenues for 2003 at €221 million, an increase of 10 per cent over 2002's figures. Exports levels jumped by 26 per cent to €192 million, reflecting a slow domestic market in France in 2003. In spite of the increased sales, gross profits fell by 44 per cent, while net profits were down by 74 per cent to €3million or 1.7 per cent of sales, compared to 5.7 per cent reported in 2002.

The company attributed the profitability slump to a strong increase in competitive pressures, particularly in the second half of the year, a conservative approach to the build schedule in the second half of the year driven by the uncertainties in the market. The steep decline in the US dollar and the complete write-off of the costs associated with the closure of the company's Chambery production plant was also held accountable. With revenues increasing and a strong focus on reducing production costs, Haulotte expects to see net profit bounce back to around five per cent in 2004.

The company says that with the first signs of an upturn now emerging, particularly in the US, along with the wider range of products and services that it now offers, it feels confident forcasting an increase in revenues of over 25 per cent to €280 million for the period.

A percentage of the predicted revenue will of course come from the company’s growing rental divison. The purchase of LEV completed at the end of 2003 will have a full year's impact in this year.

Haulotte has also finally comfirmed the acquisition of UK Platforms, which it claims had revenues in 2003 of €14 million and a fleet of over 1,000 units.