France-based Manitou Group recorded revenue of €461 million in the first quarter of 2018, up 21% from the same period in 2017.
By business division, the Material Handling & Access (MHA) Division saw revenue of €322m in the quarter, a 24% increase compared to the first quarter of 2017. There was an expansion in activity across all geographical regions, prompting the manufacturing sites to re-organise to keep pace with increased volumes.
The Compact Equipment Products (CEP) Division posted sales revenues of €71m, an increase of 25%. Business in North America accelerated sharply, particularly with strong demand from rental companies in North America and the success of the development of its Indian products. In addition, the decline of the US dollar improved its competitiveness for exports from the US. This offset a significant portion of the inflationary trend and costs of ramping up manufacturing sites, said the company.
The Services & Solutions (S&S) Division recorded a 7% increase in its revenue at €68m. The division continued to develop all its activities, in particular through the sustained demand for spare parts, second hand vehicles and services.
Michel Denis, president and CEO, said, “With a 21% increase in sales revenue, the Group achieved a new quarterly record. Order intake equalled the record of fourth quarter 2017, which meant that we closed the quarter with an order book at a record high of €870m.
There were challenges however, ”Our ramp-up was tempered by the difficulties experienced by certain suppliers in supporting this effort, without jeopardising our overall growth dynamic. Above and beyond the adaptation efforts required to increase production, strong market demand had an inflationary effect on the price of raw materials and components. Manitou is passing on these increases to its customers, but over an extended period of time, because of the depth of our order book,” Denis added.
The company added that it expected annual growth in revenues for 2018 of over 15%, compared with 2017.