30.08.2009

Haulotte down 61%

Haulotte has published its first half results which show total revenues of €99.8 million, a fall of 61 percent. The company says that in the face of “intense commercial efforts” its has managed to maintain its market share.

The revenues are made up of Equipment sales of €70.8 million – 69 percent down on the same period last year The decline is masked somewhat in that Bil Jax was not part of Haulotte’s first half numbers for 2008.

The decline in equipment sales on a like-for-like basis is therefore more likely to be closer to 75 percent. Sales out side of Europe improved marginally to €18.5 million, but only due to the acquisition of Bil Jax.

Rental revenues were €13.9 million – 11 percent lower than for the same period last year, while ‘Services’ also declined 11 percent to €15.1 million.

Net profit for the period was a loss of €32.1 million, compared to a profit for the first half of 2008 of €55.2 million. This in spite of a reduction in costs of 25 percent (excluding BilJax).

The company says that it has drawn down all of its currently available credit lines giving it around €70 million of liquid assets. However as of the end of June it confirms that it has breached some of its loan covenant ratios and that its has opened discussions with its banking partners to negotiate new terms.

Vertikal Comment

This is a weak result from Haulotte, its non rental businesses declined 65 percent, compared to 62 percent from Skyjack, 65 percent for JLG and 70 percent for Genie. However take away the Bil Jax contribution and Haulotte’s like-for-like business has fallen at least 71 percent.

In terms of profitability Haulotte scores much better, only being beaten by Skyjack.

Haulotte has of course suffered from the strength of the Euro, particularly against Skyjack which still produces all of its equipment in North America. However with plenty of availability and more competitive prices from its main competitors it is facing much stiffer competition from its peers for those deals that are being done.

Cutting 25 percent out of what was already a relatively lean operation in comparison to the others, may have damaged its sales and marketing efforts to a greater extent than its main competitors, although the company did attend Intermat while Genie and JLG did not.

The negotiations with its lending syndicate are unlikely to cause it any serious difficulty, although the costs are likely to hurt. The company has only recently paid a full dividend for 2008 – costing it €6.5 million. Cash it may soon wish that it had retained.

On a more positive note, comparing the first two quarters suggest that the situation has stabilised in terms of revenues and that this may well be the bottom.

The key question now though is how will Haulotte fare in the bounce-back as the market begins to pick up? In a rapid rise situation it will do well, having shown consistently that it can take and implement ramp-up decisions far faster than the big two and has benefited from this in previous upward cycles.

However should the pick-up occur at a steadier pace, as is likely, Haulotte is in danger of loosing out to its three main competitors. Watch this space.