Manitou CEO Giroux Resigns After Decent but Unspectacular 2012 Results

Manitou Group, while announcing a 12-percent revenue increase for 2012 to €1.265 billion (about U.S. $1.64 billion), made the surprise announcement that president and CEO Jean-Christophe Giroux is leaving his post. Manitou’s board said Giroux, president and CEO since June 2009, is stepping down in anticipation of his term of office expiring at the upcoming June 6 general meeting and the need for a more operational focus. Giroux will be replaced on an interim basis by Dominique Barnas, an independent board member since 2009.

“The board has paid Mr. Giroux a unanimous tribute for weathering the 2009 storm, for initiating all necessary reforms and for successfully repositioning the compact equipment and industrial material handling divisions on new trajectories,” the company said in a statement. “At the same time, the board believes that the new environment calls more for an operational focus, with a better balance between profitability and development.” The company said Giroux will stay through March 31 to facilitate the transition.

Manitou’s rough-terrain handling division generated €857 million (about U.S. $1.11 billion), an 8-percent growth compared to 2011 (€796 million), with all regions delivering growth except Southern Europe. From an operational standpoint, the division initiated an in-depth re-foundation of its core processes to reinforce its efficiency, reactivity and research-and-development agility. However, operating profit was €28 million, down 2.7 points year over year.

The industrial material handling division posted revenue of €163 million, an 11-percent increase compared to 2011, while the compact equipment division jumped 30 percent from €188 million in revenue in 2011 to €245 million in 2012.

“The 2012 earnings provide a contrasted picture in many respects,” said Giroux. “Both CE and IMH divisions are delivering a great performance, from top to bottom, and confirm they’re now on a new trajectory. On the other hand, RTH’s overall disappointing numbers have been affected by depressed margins (new engines, competitive landscape) and several negative on-offs (capacity swings, quality alerts.) Business outlook seems to be improving a bit, and developing opportunities will certainly compensate any persisting segment or geography weakness.”

Manitou Group still expects stable revenue and profitability in 2013, with operational progress compensating for the pressure on margins.