Agro Perspectiva

Manitou: Q1 2018 Sales Revenues

27.04.2018 10:50 "Agro Perspectiva" (Kyiv) — Michel Denis, President and Chief Executive Officer, stated: «With a +21% increase in sales revenue, the Group achieved a new quarterly record. Manitou took full advantage of favourable market trends across all geographical regions and business sectors, and of the new product ranges success. Order intake equalled the record of Q4 2017, which meant that we closed the quarter with an order book at a record high of 870m EUR.

In partnership with our suppliers, we are increasing our production rate to meet demand and reduce our delivery times. 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.

The action plans implemented to adapt Manitou to current market demand should be operational by the end of the first half of the year, which suggests the prospect of very strong activity in the second half. In view of these elements, we expect now for 2018 an annual growth in revenues over 15% compared with 2017 and an increment of our recurring operating income by around 80 basis points compared with 2017».

Business review by division

With sales revenue of 322m EUR for the quarter, the Material Handling & Access (MHA) Division recorded a +24% increase (+27% at constant scope, accounting standard and exchange rates) compared with Q1 2017. There was a general expansion of activity across all geographical regions, prompting the manufacturing sites to get organised to keep pace with increased volumes. The MHA Division is the most impacted by the sales price implementation discrepancy compared with the price increase in materials as a result of the depth of its order book. It also has a negative impact caused by the decline of the dollar.

The Compact Equipment Products (CEP) Division posted sales revenues of 71m EUR, an increase of 25% (+22% at constant scope, accounting standard and exchange rates) compared with Q1 2017. 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 United States, offsetting a significant portion of the inflationary trends and costs of ramping up manufacturing sites.

The Services & Solutions (S&S) Division recorded a +7% increase in its revenue (+6% at constant scope, accounting standard and exchange rates) compared with Q1 2017 at 68m EUR. The Division continued to develop all its activities, in particular through the sustained demand for spare parts, second hand vehicles and services. The Division continued to work on increasing the diversification of its activities in order to meet customer expectations.