Manitou sales fall 56% in 'brutal' first half

17 September 2009

Manitou has reported a 56% fall in revenues to €357.8 million for the first half of the year, with sales down 60% in Europe and 66% in North and South America.

The company made a net loss of €93.7 million, which includes restructuring charges of €12.6 million and a €50.1 million impairment charge on Gehl's assets. Manitou said operating losses were €40.9 million, including a €28.7 million "negative contribution" from Gehl.

Manitou said business was unlikely to pick up over the short or medium term, with its agriculture business affected by low market prices, construction still depressed and credit availability limited.

Jean-Christophe Giroux, Manitou president and chief executive officer, said the period had represented a "brutal" triple-crisis for the group; "an economic crisis, a financial crisis and a governance crisis [a reference to Manitou's change in leadership and corporate structure].

"Operating conditions have been however sustained, demonstrating the resilience of Manitou's business model, its teams and its dealers' networks. Thanks to the new governance and restored financial stability, the company now focuses on rightsizing its operations, to match current business conditions but also to prepare the eventual pick-up of our different application markets."

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