News story

Manitou sees sales drop

Wednesday, 19 March 2014 ( #659 ) - Ancenis, France
Manitou sees sales drop.
Manitou sees sales drop. PHOTO: SHUTTERSTOCK
Manitou BF has reported a 7% decline in 2013 group sales, 4% of which is related to the termination of Toyota distribution and 2% to changes in the value of the Euro. CEO Michel Denis says the group's 2013 results were impacted by an increasingly competitive environment "exacerbated by pressure on margins related to adaptation to new engine standards, as well as the impact of currencies". Manitou's industrial materials handling division posted revenue of EUR123.8 million (USD 172.45 million), 24% lower than in 2012. The termination of the Toyota distribution contract ( News #550) contributed a 28% decline in revenue that was offset by a 4 % growth in other businesses. Launched internationally in 2012 and in France in early 2013 to compensate for the Toyota distribution contract, the new range of MI industrial trucks has found "solid success" ( News #552). The redeployment of resources initiated in late 2012 to support the transformation will continue in 2014 because of the announced discontinuation of the Toyota mast assembly contract in December of 2014. The division reported an operating loss from continuing activities of EUR3.8 million (USD5.3 million) compared to EUR2.6 million (USD3.6 million) in 2012. The rough-terrain handling division generated revenues of EUR810.5 million (USD1.129 million) in 2013, compared to EUR856.6 million (USD1.193 million) in 2012, a decrease of 5%. The year was highlighted by increased pressure on margins generated by the changes in engine standards, the concentration of the construction business towards rental customers and the revaluation of the Euro against other currencies. The division closed the year with an operating income of EUR12.1 million (USD16.9 million). With revenue of EUR242.1 million (USD337.2 million) compared to EUR245.2 million (USD341.6 million) in 2012, the compact equipment division sales decreased by 1%. Driven by the recovery of construction activity in the US, the division benefited from strong growth in the telehandler rental market, while the distribution of compact skid-steers increased pressure on volumes and margins due to the change of engine standards for the new product range. Operating income from continuing activities was EUR13 million (USD18.1 million) compared to EUR15.1 million (USD21 million) in 2012 "To reverse this trend, the group will strengthen its commercial development, optimise its margins and lower its breakeven point," Denis says. "The stakes are high, but a lot of work has already been achieved towards that goal in the last year. I'm absolutely convinced that we're already on the path towards further success."