The board of directors of Manitou BF, meeting on March 6, 2018 closed the accounts for 2017. Michel Denis, President and Chief Executive Officer stated: “The group closed the financial year 2017 with a +19% rise in revenues, having also strengthened our sales positions, expanded our operations outside France with the acquisition of two entities in India and Australia and lastly, having improved further our financial profitability. A year during which we have enjoyed the full and unwavering commitment of all our teams and partners. Recurring operating income increased by +35% to reach 6% of sales revenues, hitting the target we set ourselves in our 2014-2018 roadmap a year ahead of schedule. I also note that, excluding exchange rate impact, this profit rate is 6.5% of sales revenues.
We were also pleased to see a return to profitability last year for the Compact Equipment Products division after two difficult years and the remarkable financial performance of the Services and Solutions division, which is now the group's top contributive division. The large size of our order book and the ongoing favourable market conditions mean that we are organising ourselves to continue to ramp up production operations at all of our sites, with the supply chain conditions occasionally strained and remaining inflationary. The full effects of this acceleration will be visible in the second half of the year. All of these elements enable us to predict for 2018, at constant exchange rates, a growth in sales revenues above +10% and an improvement in recurring operating income of around 50 base points, equivalent to approximately 6.5% of sales revenues.”
Having reached its 2014-2018 target a year ahead of schedule, Michel Denis presented the Manitou group vision for 2022.
“Our vision is that by 2022, the Manitou group will strengthen its leadership position by providing innovative and cutting edge solutions across the globe and by expanding its range of products and services. Constantly adding value for its customers, Manitou group will continue expanding its commercial presence to increase its market share and deliver sustainable growth.”
“By boosting our geographical coverage and innovation, combined with the expansion of our ranges of products and services, we should be able – all other things being equal – to generate higher growth than market trends.
This new development framework leads us to define our recurring operating income target at more than 8% of our
sales revenues in 2022, an exciting challenge that all of the teams are already working towards.”
Business review by division
The Material Handling & Access Division (MHA) reported sales of €1,095 million in 2017 against €904 million in
2016, a growth of +21% (+22% at constant exchange rate and scope). The costs involved in the organisation of
increased production rates at our production sites and those of our suppliers, changes in exchange rates and an
inability to pass on inflationary trends in the price of raw materials due to the size of the order book were offset by
the positive effects created by the dramatic increase in activity. From an operational point of view, the division
upped the pace at which it is developing new products.In the financial year, the division's operating income
increased by +22% to €76.1 million, accounting for 6.9% of sales revenues, the same level as in 2016.
In addition, the legal proceeding related to the summons received in May regarding patent infringement from a
competitor, has continued over the second semester. However, no significant event occurred during this period.
The Compact Equipment Products Division (CEP) reported sales of €244 million in 2017, a rise of +20% against
2016 (+12% at constant exchange rate and scope). The division benefited from its good performance in the North
American rental market along with a drop in the value of the dollar, which improved the competitiveness of its
products exported from US sites. From an operational point of view, the lack of available labour slowed down
improvements in profitability. The division also underwent a major transformation with the acquisition of the
company TEPL in India, a platform intended to develop ranges for emerging countries. Recurring operating income
increased sharply, returning the division to profit at €0.1 million compared with a loss of €-6.0 million in 2016.
With sales revenues of €252 million, the Services & Solutions Division (S&S) recorded a +12% sales increase in its
activity (+10% at constant exchange rate and scope) against 2016. The improved economic situation across all
markets promoted the use of machines and as a result, the need for parts and related services. The division also
continued to develop a host of user-oriented services and bolstered its service provision activities with the
acquisition of LiftRite in Australia. In 2017, the division recorded recurring operating income of €19.3 million, i.e.
7.7% of sales revenues, up by 1.4 point on 2016. It therefore becomes the group's most profitable division for the
first time since it was set up.