Manitou is putting into place measures to boost cashflow, lower costs and downsize production in order to offset the effects of the weakening global economy.

The company says it expects sales could decline by as much as 40% compared with 2008, which would result in a loss being incurred for 2009 as a whole.

Manitou has already drawn down a significant proportion of its credit lines to boost available cash and to avoid being exposed to a liquidity risk over the medium term.

US subsidiary Gehl Company has been unable to comply with certain bank covenants and has opened negotiations with local bankers regarding syndicated credit lines to avoid the banks pressing for early repayment.

Manitou says it has opened negotiations with its own banking pool to adapt the terms and conditions of the syndicated loan from last year. This loan was taken out to purchase Gehl.  

The company has stated it is committed to providing support to Gehl to overcome the current crisis - but only if conditions in terms of risk mitigation and visibility are satisfactory.