25.10.2016

Positive quarter for Manitou

French telehandler and access manufacturer Manitou has reported a strong third quarter in Europe.

Total revenues for the nine months to the end of September were €1.01 billion, six percent up on the same period last year. The Material Handling division – largely telehandlers and access equipment – is 17 percent higher with revenues of €695 million, while Compact Equipment, largely Gehl – fell 23 percent to €151 million and Services edged up one percent to €167 million.

Geographically Southern Europe, which includes France, jumped 29 percent to €343 million, while Northern Europe improved eight percent to €384 million. The Americas are 18 percent down on last year at €197 million and Asia Pacific three percent lower – thanks to a poor first half – at €88 million.
In the third quarter total revenues were 18 percent higher than the same quarter last year at €323 million. Material Handling jumped 31 percent to €219 million, while Gehl slipped six percent to €47 million and Services/Solutions improved two percent to €56 million.

In terms of regions, Southern Europe is 11 percent higher at €90 million, while Northern Europe soared 38 percent to €138 million, thanks to strong agricultural sales as the possibility to buy machines with Euro 3B engines came to an end, as well as stronger demand from construction. The Americas came in three percent lower at €63 million due to reduced demand and tougher competition. Asia Pacific however was 19 percent higher at €33 million.

The order book at the end of September was just under four percent lower than this time last year – but almost 20 percent down on the quarter at €244 million. Manitou does not provide any profit and loss detail at this stage of the year. So we will have to wait until the year end is finalised to learn how this translates into profits.

Chief executive Michel Denis said: "The group recorded strong growth in the third quarter with very contrasting market dynamics. Growth is particularly steady in Europe notably in the construction sector due to the increased penetration of Manitou forklift trucks and aerial work platforms in a strong market. In the agricultural sector, the regulatory end to the commercialization of machines equipped with Euro 3B engines at the end of September this year increased the demand for these products in September but does not reflect the sector's underlying trend which remains depressed. In North America, markets are still weak and under competitive pressure. These market dynamics should last until the end of the year and this good quarter permits us thus to confirm and consolidate our outlook for the current financial year."

Vertikal Comment

Some reasonably positive results from Manitou, which is benefiting from a solid pick up in its home market, while continuing to benefit from increasing popularity for its compact telehandlers all over Europe. As the numbers show it continues to struggle in North America where the Gehl business is still not a great fit with Manitou products. Although at recent trade shows the two do seem to be showing signs of coming together into a more coherent entity.

All in all the company should end the year with revenues modestly above last year at around 1.33 billion, which should then translate to a pre-tax profit of around €60 million or so, based on the half year numbers.