Resilient third quarter for Manitou
By Euan Youdale29 October 2020
Manitou revenues dropped 10% in the third quarter, as the company reported a good order intake during the period.
Group revenue for the three months up to 30 September was €391 million, compared to €436 million in the same period last year. Sales over the nine months to the end of September stood at €1.15 billion, a 28% drop on the first nine months of 2019. In comparison, first half year revenues were 35% lower than the same period last year.
Michel Denis, president and CEO, of Manitou Group said, “Over the third quarter, the group had a sustained level of activity that enabled it to make up for some of the delivery delays caused by the containment period and to reactivate business with our customers.”
According to the manufacturer, order intake for the quarter exceeded that of the third quarter of 2019. “This positive momentum is due to sustained activity in the European and North American networks, as well as a slight upturn in rental orders to be delivered in late 2020 or early 2021, enabling the group to end the quarter with an order book higher than in September 2019”.
With third quarter sales of €252 million, the Material Handling & Access Division (MHA) recorded a decline of 14% from €293 million, compared to the third quarter in 2019 and a decline of 33% to €749 million over the first nine months of the year. “The division had a high level of industrial activity to deliver machines to the agricultural sector and geographical territories outside Europe,” said the company.
The Compact Equipment Products Division (CEP) generated quarterly sales of €60m, down 14% compared to the same period last year and down 26% over the nine months. “Business with rental companies was down significantly compared to 2019, although some operations have been resumed since the end of the summer. Distribution through dealers is relatively resilient, particularly in the US,” said Manitou Group.
During the quarter, the company focused on getting closer to customers and expanding the service division, leading to a rise in revenue. Reporting a revenue of €79 million, the Services & Solutions Division (S&S) recorded a 7% increase to €79 million in the quarter, and a 3% decline in the nine month period. “The very good business performance was supported by high utilisation of our clients’ machines and the ongoing development of services. The S&S division recovered its pre-containment level of activity.”