01.09.2015

Haulotte boosts profits on flat sales

Haulotte has issued its half year results, with flat revenues but a steep rise in profitability.

Total revenues for the six months were €207 million, almost exactly the same as last year, although this was boosted by favourable exchange rates. In constant currency terms the company saw a decline of eight percent. Part of this is also down to comparison with a strong second quarter in 2014.
Net income for the period however jumped 67 percent to €17.2 million thanks to the positive effect of a weak Euro.

In local currencies the results were a mixed bag, with strong growth in Asia- up 17 percent and a solid improvement in North America – up eight percent. Offset by a 13 percent fall in Europe - due says the company, to the “wait and see attitude of major rental companies” - and a 34 percent drop off in South America driven mostly by the collapse of the Brazilian market.

Sales of new machines fell 2.4 percent to €172.5 million while rental revenues increased 15.7 percent to €12.5 million, and services rose 11.7 percent to €22 million.

Haulotte says that net debt remained stable over the period and it is forecasting overall revenue growth for the full year in the region of five percent.

Vertikal Comment

Haulotte does not disclose enough information in its interim results to make any specific judgements. But it looks as though it has performed similarly to or slightly better than most other major aerial lift producers at the half year point, with combined sales and product support revenues for the six months down just under one percent to €194.5 million.

However it looks like it may have suffered a little more than others with new machine sales in the second quarter, partly due to comparison with a strong second quarter last year and possibly as a result of disruption from new model change overs?

The company is making solid and steady progress in North America and making serious gains in Asia, both of which are important as it is also seeing far more competition in its home market and Southern Europe where it has traditionally been a market leader.

The strong profitability surge, is due mostly to exchange rates – an advantage which is currently showing no signs of abating.

The company may not be on the growth fast track but it is continuing to improve its products as it launches a rash of new models, which ought to provide a significant benefit in the second half and beyond. look to 2016 for more of a bounce back for the company.