27.10.2009

Manitou down 47% while backlog improves

French based telehandler and access equipment manufacturer Manitou, has reported continuing declines in revenues for the third quarter but its backlog is improving.

The third quarter saw revenues fall by 47 percent compared to the same period last year to €146.7 million. The largest falls in percentage terms were recorded in France and the rest of Europe, both down by 52 percent. America is up by 43 percent, due to the addition of Gehl’s numbers in 2009.

For the nine months year to date, sales were €504.5 million 50 percent down on the year in spite of the contribution from Gehl. Without which the decline would have been more like 52 percent. As with the quarterly results France and the rest of Europe were the biggest fallers with sales down 55 percent in each. The rest of the world fared better with revenues dropping just 39 percent – North America was up 60 percent to €57.6 million.

Manitou says that while revenues have continued to erode, with a weaker European agricultural market contributing to the slide, its order book has climbed to three months worth of production for the first time this year. It expects the current slow down in sales to bottom out in the fourth quarter. As dealer destocking comes to an end.

It is forecasting revenues similar to the third quarter – roughly 50 percent down on last year. In the meantime net debt has been cut by 35 percent since the start of this year.

Vertikal Comment

Manitou has had a rough time of it, with its change in senior management and financial challenges. It does though appear to be getting on top of things and is faring better than some.

How well its does going forward will depend on how confident its all important dealer network feels with the new regime running the company and the strategies that it adopts. The company still has a great many strengths and if its new senior managers can “walk the talk” it could come out of the recession in a better market position than it went in.

However there are still many decisions to be made regarding its product lines and product sectors to be made.