Manitou Releases Second Quarter Earnings Report

Jean-Christophe Giroux, president a CEO of Ancenis, France-based Manitou Group, reported that the second quarter of 2012 has been a great quarter for the company.

“We pulled an extra-effort to bring our rough-terrain handling division lead times down to acceptable market levels—a major step forward in our Refoundation program both from a commercial and operational perspective,” he said. “Second, despite good levels to date, we now expect a slowdown in order intake, to reflect on a global environment where negative situations—whether real or just anticipated—now generalize over positive ones.

The company is not altering its forecast (up 10 percent vs. 2011) but it is adjusting its run rates and throughput, contrasting with the operational H1 tension with its factories and suppliers.

Giroux added: “We maintain our focus on new product ramp-up, and across-the-board operational reforms that unfold according to plan. The combination of lower-than-expected volumes, intense Refoundation efforts and operational swings is likely to weigh on our FY margin, which—pending H1 earnings release on August 29—we update from 5.5 percent to 5 percent. The new environment confirms that the industry is moving away from long and steep cycles to shorter and more contrasted market situations where reactivity, adaptability and flexibility will be key. It does not change our vision of the market potential, nor our own ambitions, capacity and enthusiasm to lead it and get to the next level”.

Divisional Review

The Rough Terrain Handling (RTH) Division generated revenue of €252m ($306.8 million) up 23 percent vs. Q2’11, a solid performance partly reflecting its effort to reduce its lead times and get to new performance levels. Agriculture has been quite good, because of seasonality and still favorable commodity prices. Construction has shown more contrasted situations according to geographies and ‘New Business’ continued to create numerous opportunities primarily in emerging markets.

· The Industrial Material Handling (IMH) Division posted revenue of €43.2m ($52.6 million) up 9 percent vs. Q2’11, fueled by better operating conditions at its Beaupréau site. IMH also registers the first positive signals of the launch of its new counterbalanced industrial truck outside France.

· The Compact Equipment (CE) Division generated a 24 percent revenue growth at €61.8m ($75.2 million) vs. Q2’11. In North America, large rental customers have initiated partial refleeting programs that provided good business for the Gehl-branded telehandlers. By contrast, Europe is suffering on its traditional skid steers markets due to the sluggish construction and economic situation (Southern Europe especially).