Inconsistent quarter for Manitou
By Euan Youdale22 July 2013
Manitou's second quarter revenue was down 10% to €319 million compared to the same period last year, although the period saw rises on the first quarter of this year.
Revenue for the first half of 2013 was €591 million, representing a 12% decline on the same period in 2012 but was flat compared to the second half of 2012. As a result, the company has adjusted its full year 2013 sales downwards by 5%.
The rough terrain handling segment - primarily telehandlers - reported revenue of €224.1million for the quarter, a decrease of 11% compared to the same period in 2012. Despite the drops, Manitou interim CEO Dominique Bamas said second quarter revenue was the second best quarterly performance since the end of 2008. "It highlights the extent to which the efforts we have made to step up our production output have been fruitful.
“The stronger Euro weighs more and more heavily on our competitiveness and our profitability. The pressure of currencies will continue to affect H2 (second half year) performance," explained Bamas.
"This new constraint will unfortunately wipe out the efforts to reduce fixed costs that have been implemented since my arrival, and without which the Group’s financial profile would have been significantly altered. Given the economic environment and the strong Euro revaluation, we reconsider our outlook for the year with a 5% revenue decrease."
The Industrial Material Handling Division (IMH) played a significant role in the quarter's revenue drop. It recorded quarterly revenue of €32.8m, down 24% compared to the second quarter 2012. However, the division recorded a growth of 12% compared to second quarter 2012 excluding the impact of the termination of its Toyota distribution contract.
In contrast the Compact Equipment Division (CE) - which includes the Gehl and Mustang brands which are particularly strong in North America - showed an increase of 1% in revenue to €62.4 million compared to the same period in 2012. This was driven by the agricultural sector that remained strong and the continued demand from rental companies, said the company.