Posted March 8, 2018

Manitou Group announces 2017 results

Total revenue increased 19 percent in 2017 over 2016.

“The group closed the financial year 2017 with a 19 percent 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," says Michel Denis, Manitou president and chief executive officer. “A year during which we have enjoyed the full and unwavering commitment of all our teams and partners. Recurring operating income increased by 35 percent to reach 6 percent 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 percent 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 contributing division. The large size of our order book and the ongoing favorable market conditions mean that we are organizing 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 percent and an improvement in recurring operating income of around 50 base points, equivalent to approximately 6.5 percent of sales revenues.”

2022 vision
Having reached its 2014-2018 target a year ahead of schedule, 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 percent of our sales revenues in 2022, an exciting challenge that all of the teams are already working toward.”

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 organization 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 percent to €76.1 million, accounting for 6.9 percent 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 percent against 2016 (12 percent 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 labor slowed 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.

The Services & Solutions Division (S&S) recorded sales revenues of €252 million, a 12 percent sales increase in its activity (10 percent 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, or 7.7 percent of sales revenues, up by 1.4 points on 2016. It therefore becomes the group's most profitable division for the first time since it was set up.

Dividend proposed at the next shareholders’ meeting
The Board decided to propose a dividend payment of €0.62 per share at the next shareholders’ meeting, which will be held June 14, 2018.

2018 Outlook
Anticipation of an increase of more than 10 percent in sales revenues, at constant exchange rates, and an improvement in recurring operating income of around 50 base points, equivalent to approximately 6.5 percent of sales revenues.

New 2018-2022 roadmap
Manitou has set itself the goal – all other things being equal – of achieving higher sales growth than market trends by expanding its geographical coverage, extending its product range and boosting innovation. In this framework, the strategic priorities will be:

  • to improve customer commitment across continents, especially in North America
  •  to expand machine and service portfolios, especially in compact equipment
  • to create value and performance through innovation, digitalization and transformation, in particular by incorporating CSR as a transformation driver
  • to elevate talents by enhancing and leveraging our unique employee experience

Based on these elements, in 2022 the Manitou group aims to record recurring operating income that is higher than 8 percent of sales revenues.

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