Rental Companies’ Buying Pause Slows Manitou in Third Quarter

Manitou posted €273 million (about U.S. $301.4 million) in the third quarter, an 8 percent decrease compared to €295 million in the third quarter of 2015. The results shows a third-quarter slowdown since for the first nine months of 2015, Manitou totaled €954 million, a

2-percent increase compared to €937 million in the same period in 2014.

Manitou’s sales in the Americas declined 9 percent in the third quarter, although it increased 19 percent for the first nine months of the year. Northern Europe dropped 11 percent in the third quarter, but still remains up 1 percent for the first nine months. The positive turnaround in the quarter came from Southern Europe where sales grew 4 percent, although still down 6 percent for the year to date.

“The business experienced a slowdown in the third quarter as a consequence of a pause in the investment activities of rental companies in the United States, a recession in the Asia-Pacific-Africa region and the impact of the crisis in Russia,” said Michel Denis, president and CEO. “The lack of visibility was accentuated by the recent market turmoil and drove purchasers to delay their investments. The Services and Solutions division continued its growth (up 5 percent during the quarter and 7 percent over the nine-month period) confirming the offers deployment in process and the progress achieved on our roadmap.

“The business activity of the last quarter will be sensitive to the agricultural seasonality in North America and to the purchasing opportunities of rental companies. The difficult business environment was also reflected in the order intake and order backlog at the end of the quarter, which leads us to expect sales growth of around 3 percent for 2015 for a confirmed recurring operating income of approximately 4.5 percent.”

Manitou, which also owns the Gehl and Mustang brands, is based in Ancenis, France, with U.S. headquarters in West Bend, Wis.