In its third quarter financial statement, Manitou Group reported its quarterly sales were €273 million, an 8% decrease from Q3 2014. However, the cumulative nine-month sales of €954 million was a 2% increase compared to the nine-month period in 2014.
Manitou also reported that orders for equipment in Q3 was €189 million versus €207 million in Q3 2014, and the order backlog at the end of Q3 was €253 million compared to €268 million in Q3 2014. An updated outlook for sales growth of around 3.0% for a confirmed recurring operating income of approximately 4.5%
According to Michel Denis, president and CEO: "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. The lack of visibility was accentuated by the recent market turmoil and drove purchasers to delay their investments.”
He added the business activity of the last quarter will be sensitive to the agricultural seasonality in North America and 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 3.0% for 2015 for a confirmed recurring operating income of approximately 4.5%," Denis said.
Division reviews
With third quarter sales of €168 million, the Material Handling and Access Division - (MHA) reported a decrease in sales of 8% compared to Q3 2014 and 2% over the nine month period. Southern Europe benefitted from a gradual improvement in the markets, while Northern Europe experienced a pause in its business activity and the full impact of the crisis in Russia. Finally, the APAM region experienced a business environment made difficult by the effects of a slowdown in the Asian economies and the sluggish mining sector.
Per business sector, there was an improvement in the agricultural sector and a reduction in the construction sector over the nine-month period due to the wait-and-see attitude of rental companies.
The Compact Equipment Products division - (CEP) reported sales of €50 million, a decrease of 19% compared to Q3 2014, and an increase of 10% over the nine-month period. The North American business was affected by this summer's financial disturbances, which resulted in a reduction in the rental companies’ business activity. In the other regions, the division continued to suffer from the Russian crisis and the general slowdown in the markets within the APAM region. In addition, the division has initiated an adaptation program to face the market uncertainties.
The Services and Solutions Division - (S&S) reported a sales increase of 5% compared to Q3 2014 at €55 million and a sales increase of 7% for the first nine month period of the year. The division continues to organize its business activities by sharing the respective know-how within the group and the implementation of common management tools. Growth in the third quarter was especially highlighted in Northern Europe.
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