29.07.2015

Manitou up 6%

Manitou has released its top line numbers for the first half, showing a modest rise in revenues and a more marked improvement in profitability.

Total revenues for the six months were €681.2 million, six percent up on last year, while operating profits improved 36 percent to $29.8 million.
Revenues from the Material handling and Access division, that largely covers telehandlers and aerial lifts were roughly the same as last year at 426.6 million, with an operating profit of €18.9 million - 72 percent up on last year.

The Compact Equipment division – largely Gehl – increased 26 percent to €145 million boosted by a strong dollar to the Euro, however operating income slipped 15 percent to €6.8 million. The Services and Solutions Division was up eight percent at €110 million

In the second quarter total revenues were up two percent to €358 million, with the Material handling business declining three percent to €227 million. Revenues at Gehl improved 16 percent to €74 million and the services division rose four percent to €54 million.

Strongest growth was seen in North America, both due to exchange rates and a strong market. But Asia Pacific also bounced back in the quarter – up 14 percent compared to a small decline in the first quarter. Northern Europe continued to improve while Southern Europe, including France continues to decline.

Manitou is holding its full year forecast of a six percent rise in revenues and 4.5 percent in operating profits.

Chief executive Michel Denis said: “In the first half of the year, sales increased by six percent compared to 2014. The growth regions remained in North America and Northern Europe, however with less sustained momentum than last year. France, impacted by a decrease in construction activity and Russia, hit by political and economic strains, were the two countries which decreased significantly. From a sector point of view, the agricultural sector stabilised and the construction sector benefited from the activity of rental companies outside France”.

“The strengthened financial performance of the first half year period confirms the previously communicated improvement. The second half year period began with a slightly reduced order backlog. In France, the impact of recent tensions in the agricultural sector could slow the recovery of that market, whereas tax incentives which promote investments in handling equipment should result in an increase in business.”

Vertikal Comment

We have yet to see the full accounts for this period, but what is clear is that as with several other companies, the second quarter was softer than the first, although still positive. This is likely to be offset by a marginally better second half that could still see Manitou beat its original projections for the year.

As time goes on the acquisition of Gehl at the start of the recession is looking to be a far better deal than it looked from the depths of the downturn. We will update this when we see the full numbers, but with what we have seen expect Manitou to beat its original projections.