Manitou reports 20% half year growth in face of obstacles

Manitou has reported a 20% increase in turnover for the first half of 2012 compared to the first half of 2011 and an upturn in profit of 22%. However, president and chief executive officer Jean-Christophe Giroux said progress was slower than expected because of a number of internal and external factors.

""H1 delivers good progress on our financial performance, and that's an accomplishment in today's economy," said Mr Giroux, "At the same time, progress has been slower than expected, as margins were affected by a combination of new elements, either current or more structural.

Internally there were some one-off costs relating to Manitou's largest division - RTH(rough terrain handling, which includes the access equipment and larger telehandlers. These included a leadtime reduction effort, new product launches, and external events such as the Festival or Open Up. RTH also had some supplier issues to resolve.

Externally influences have included dealing with the full impact of new regulations, and the company has accelerated its efforts to adapt to the new environment and industry requirements.

"Traditional cycles are now blurring into volatile and contrasting [market] situations," said Mr Giroux, "but it does not impact on our strategy nor our ambition to double our size -we just have to deploy greater flexibility and adapt to shifting horizons. And we are already adjusting our workforce and initiatives to match a, possibly conservative, demand plan for 2013, while sustaining all efforts to improve our operational performance."

By division the RTH division brought in €473 million revenue in H1 representing 19% growth in the same period last year. Industrial Material Handling generated €84 million - 4% growth - and the Compact Equipment division turnover was €115 million - 27% growth.

A strong backlog at June 30, 2012 leads Manitou to project that H2 2012 revenue should be flat or slightly higher than the previous year confirming an overall 10% growth on a full year basis.