21.04.2016

America causes dip for Manitou

Manitou has reported first quarter revenues of €312.2 million, down three percent on the same period last year.

Looking at the three main divisions Material Handling – largely Telehandlers and access equipment – improved nine percent, thanks mostly to a strong pick up in Southern Europe. The Compact Equipment division – mostly Gehl – on the other hand plummeted 42 percent to €40.8 million, to to a collapse in sales to the North American market at the end of last year, which has translated into lower shipments in the first quarter. Services and Solutions edged up two percent to €54.2 million.

Geographically sales in Southern Europe jumped 49 percent to €132.5, while Northern Europe dropped by 14 percent to €99.3 million. The Americas fell38 percent to €54.1 and Asia Pacific declined 18 percent to €26.3 million.

Chief executive Michel Denis said: "Business in the first quarter was in line with our objective for 2016. The slight decrease in sales revenue compared to 2015 is not representative of the fundamentally improved trend that we are reporting in our order intake and backlog. Europe, which accounts for two thirds of the group's business, is doing well. It's now driven by its southern region, within which, France is also stimulated by the effects of the Macron law. The Americas region recorded the largest decrease which was the consequence of US rental companies full stop since the third quarter 2015, although they have recently made a modest comeback. Therefore, we are confirming all of our objectives set for 2016."

Vertikal Comment

The level of the North American decline is something of a surprise, and appears to undo a good deal of what the Gehl business has achieved in the past year or two. However it sounds like order intake has picked up and that ought to be reflected in the second quarter, but mostly later on in the year when this year’s results will be compared to a lower level.

The jump in Southern Europe is also surprising, but also very encouraging, while Northern Europe is probably suffering from a higher comparative last year, and possibly the fact that production availability shifted to the South? This should even out as the year progresses.

For those who might be wondering the Macron law aims to deregulate business with a wide range of measures intended to boost the French economy – and it appears to be having some effect. Manitou also continues to make gains in the access market as its boom lifts gain in popularity.

The company looks set to at least achieve its modest goal of two percent revenue growth this year, and really ought to beat it quite substantially.