18.10.2018

Positive momentum continues at Manitou

Telehandler and aerial lift manufacturer Manitou has reported a strong third quarter in terms of revenues.

Looking at the year to date numbers first total revenues were up 17 percent to €1.36 billion for the nine months to the end of September.
The biggest division Material handling and Access – largely made up of sales of European built telehandlers and aerial work platforms, posted a 17 percent increase to €930 million, while the Compact Equipment division, which is mostly Gehl in the USA, saw sales jump 28 percent to €226 million. Parts and service revenues were up nine percent to €204 million.

Geographically Southern European sales were eight percent higher at €418 million, Northern European revenues jumped 25 percent to €547 million, the Americas were 16 percent higher at €248 million and Asia Pacific up 20 percent to €147 million.

Moving on to the third quarter itself, total revenues were €419 million, an 18 percent increase over the same period last year, of which Material Handling & Access represented €277 million up 19 percent. The division IS continuing to work with suppliers to step up production in order to maintain and improve on current delivery times.

The Compact Equipment division posted revenues of €74 million, up 26 percent on last year, as it benefits from a strong market, partly offset by labour and component challenges and customs tariff increases.

The parts and service business achieved an eight percent increase in sales to €68 million, as it steps up sales of spare parts and attachments, while looking to invoice more services.

Geographically Southern Europe was 25 percent higher at €117 million, Northern Europe improved 17 percent to €177 million, the Americas 18 percent to €79 million and Asia Pacific nine percent to €45 million.

Chief executive Michel Denis said: “In markets that remain buoyant, the group is continuing to expand in all sectors and most geographic areas. The successes of new products and services and the penetration of new markets reinforce this growth. Our production facilities continue to accelerate their production rates with a good control of the operational chain in a context of supply constraints. In the United States, the scarcity of manpower and the impacts of the entry into force of the new customs tariffs make the conditions of activity more expensive. In this context, I am pleased that this growth is accompanied by strong job creation at all our sites.”

“Order intake increased by more than 10 percent compared to the third quarter last year, which was already very good. As a result, our order book remains at a high level and close to the level we had at the end of June. The depth of our portfolio allows us to confirm our outlook for revenue growth for 2018 of more than 15 percent compared to 2017, as well as the improvement in recurring operating income by more than 80 basis points, or around 6.8 percent of revenue."

Vertikal Comment

This is another good set of numbers from Manitou which is on a bit of a roll at the moment. It is benefiting from strong markets throughout Europe but is also finally getting to grips with its North American business. As a result the company should comfortably exceed sales for this year of €1.8 billion – which is more than $2 billion or £1.6 billion – just to get a view compared to its main competitors of JLG and JCB.

The company still has a lot that it can do to further increase sales, market share and geographic spread giving it plenty to go after for a similar growth levels in 2019, which it should easily exceed revenues of €2.1 billion if it continues its current strategies.

All said and done another positive third quarter result.