Manitou forecasts challenging second half year

Euan Youdale Editor, Access International

08 August 2024

Manitou has reported a positive half year, set against a slower than expected increase in US production, and says the performance will not be repeated in the rest of the year.

Group sales were stable at €1.4 billion, amounting to a 0.4% increase on the first six months in 2023, while operating income saw a big rise of 44.7% to €127.5 million, comparted to the same period in 2023.

Michel Denis, President & CEO, said, “The group closes a very good half-year in a context of contrasting activity and outlook. [This was] driven by a stronger than expected momentum in Southern Europe, growth in Europe offset the decline in North America.

“Our ambitions for further growth in North America have been compromised by a lack of operational fluidity and by a much slower than expected ramp-up of our US industrial capacities, both of which we are gradually rectifying.”

Manitou’s new MTA-519, launched at the ARA Show 2024.

According to Denis the positive first-half financial performance befitted from the improvements the company made over the past 18 months. “The delayed effect of the realignment of sales prices with raw material prices achieved throughout the previous year is now bearing full fruit.

Denis added, “This has been combined with a more favourable customer and product mix as well as reasonable control of fixed costs.”

All these factors helped to raise recurring operating profit for the half-year to 9.1% of net sales, the highest level for the last 15 years.

Second half uncertainty

However, Denis warned that the performance will not be repeated in the second half of the year. “In fact, the order intake dynamic remains an important area of concern, and it is too early to know its medium-term direction.

“In addition, the disparity in the depth of the order book between product lines has led us to reduce production at most of our industrial sites.”

Second quarter order intake this year was €86 million, compared to €287 million in the same period in 2023. The company’s order book at the end of the second quarter was €1,344 million, compared to €3,061million at the end of the second quarter last year.

Division results

Breaking the results down by company segment, the Product division reported revenues of €1,203 million, again stable over the six months compared with 2023. Since January 2024 the division has also included the mechanical welding activities from the acquisition of two Italian companies, which contributed €7 million.

Recurring operating profit rose sharply by €44.9 million to €119.3 million, compared with €74.4 million in the first half of 2023.

Overall, said the company, the Product division continued to benefit from the company’s policy of increasing selling prices that has been in place since 2022 to counter inflation on raw materials. It also benefited from an improvement in production efficiency linked to the reduction of challenges around the supply chain.

With revenues of €204 million, the Services & Solutions division (S&S) recorded growth of 1.9% over the six months, driven by its rental business, which was up 11%, and by the strengthening of its service offer, which saw a 15% increase, particularly in digital services and machine maintenance.