News story

Manitou hit by uncertainties in agricultural sector

Thursday, 30 July 2009 ( #421 ) - Ancenis, France
Manitou Group's consolidated sales for the six months to 30 June dropped 50.7% to EUR357.8 million (USD502.1 million). Gehl, which Manitou acquired in October 2008, contributed EUR36 million (USD50.5 million) to sales. Equipment sales and industrial subcontracting dropped 59% to EUR260 million (USD365.1 million) due to market conditions in the US building sector and the deferral of purchasing decisions in the agricultural sector. Manitou explains in a press release that delays in billing equipment valued at about EUR5 million (USD7 million) also contributed to lower sales figures. The delays were caused by the migration from an old IT system to a new one in its French production subsidiaries. Sales of spare parts and accessories (EUR73 million/USD102.5 million) and services (EUR25 million/USD35.1 million) remained stable, "thanks to the service strategy which has been pursued [by Manitou] for several years". Manitou says its sales for 2009 could drop by 40%-50% due to uncertainties in the agricultural sector. More than 40% of the group's telehandler sales for 2009 are estimated to be from the sector. Also, Gehl's sales forecast has been trimmed due to lower market estimates.