16.09.2009

Manitou details first half

Manitou, the French based access and telehandler manufacturer, has provided more detail on its first half results and restructuring plans.

As previously reported, total revenue for the group was €357.8 million, over 50 percent down on last year - 56 percent down on a like-for-like basis, (without Gehl) Click here to see original report

Gross Margins were strong, increasing to 32 percent from 30.8 percent in 2008, in spite of the decline in volumes and pricing pressure. This is most likely due to a more favourable product mix, in margin terms, as well as the higher margin parts and service business being a more significant part of the whole.

In spite of the good gross margins, the company posted an operating loss of €40.9 million compared to a profit of €75.8 million last year. The cause of this was the lower volumes not covering the SG&A costs, along with a negative contribution of -€28.7 million from Gehl.

Net Income was a loss of €93.7 million, compared to a profit of €48.5 million in the first half of 2008. The additional loss was driven by the operating loss, plus €12.6 million if restructuring charges and impairment charges/write downs of €50.1 million on Gehl assets.

Headcount as of June 30 was 3,129 compared to 3,341 as of December 31. This does not reflect recent departures (mainly from
voluntary plans in France) and the impact of part-time unemployment
measures across all of Manitou’s manufacturing plants.

Headcount as of August 31 is down to 2,810. Net debt is €363 million, a reduction of €116 million or 24 percent since the end of December.

The company says that business is unlikely to pick-up in the short to medium term, so it is striving to stabilise its operating results, lower its breakeven point and generate cash to payback its debt.

Chief executive Jean-Christophe Giroux said:
“Manitou went during the first six months of 2009 through a triple crisis, both brutal and new : an economic crisis, a financial crisis and a governance crisis.”

“ Operating conditions have been however sustained, demonstrating
the resilience of Manitou’s business model, its teams and its dealers’ networks. Thanks to the new governance and restored financial stability, the company is now focusing on rightsizing its operations, to match current business conditions but also to prepare the eventual pick-up of our different application markets. The value of our equipment for their users, and Manitou’s expertise and leadership will enable us to capture growth opportunities as soon as economic conditions make them possible.”