News story

More mixed results

Wednesday, 3 September 2008 ( #376 ) - Paris, France
Manitou's Maniscopic range
Manitou's Maniscopic range
France Manitou has reported an 8.1% increase in net sales to EUR725 million (USD1.05 billion) for the first half of 2008. This is despite a 70% fall in sales in Spain, which went from EUR79 million (USD115 million) to EUR24 million (USD34.9 million), and a 15.7% fall in UK sales to EUR55 million (USD80.1 million). However, Manitou reports strong growth in the rest of the European market, particularly in Benelux countries with sales increasing by 89% to EUR65 million (USD 94.7 million). Sales in France increased by 18.5% to EUR297 million (USD433.7 million), 44% in Germany to EUR42 million and doubled in Poland to EUR17 million (USD24.7 million). Manitou says the gross margin fell by 0.5% due to an increase in raw material costs and a downturn in the US dollar and Pound Sterling. Net profit for the first half of 2008 was down 11.6% from EUR54.8 million (USD79.8 million) to EUR48.5 million (USD70.6 million). Manitou expects the second half of 2008 to be marked by further declines in equipment sales in the construction sector, strong pressure on raw material prices and further depreciation of the sterling. The company is implementing cost-cutting plans in order to preserve profitability. Singapore Tiong Woon has reported an increase of 58% in sales revenue for the 12 months to June 30 2008, with the strongest growth coming from Singapore. Sales revenue for the crane company was SGD158 million (USD110.7 million) despite pressures from rising oil prices and materials. Sales in Singapore contributed SGD100.4 million (USD70.3 million) or 64% of the total revenue; compared to SGD43.8 million (USD30.7 million) or 44% in 2007. The second and third largest revenue contributors were Thailand, turning in SGD17.3 million (USD12.1 million) or 11%, and the Middle East with SGD10.9 million (USD7.6 million) or 7% of total revenue. The new fabrication yard in Bintan made a pre-tax loss of SGD3.4 million (USD2.8 million) but the heavy lift and haulage arms of the company contributed SGD99.2 million (USD69.5 million) to overall turnover, a profit before tax of SGD30.6 million (USD24.5 million), an increase of 133%. The trading arm saw an increase of 13% to SGD19.6 million (USD13.7 million), registering a profit before tax of SGD4.2 million (USD2.8 million) due to better selling prices of brand new cranes. There was a decrease in the turnover of the marine transportation segment by 19% to SGD12.6 million (USD8.8 million), but overall profit before tax of SGD3.8 million (USD2.6 million, was up 11% from the previous year. Tiong Woon says the decrease in turnover was due to a number of its tugboats undergoing maintenance during the last few months.