Manitou Grows Third Quarter Revenue by 9.6 Percent
Manitou posted €354 million (about U.S. $410 million) in third quarter revenue compared to €323 million in the third quarter of 2016, a 9.6-percent increase. The highest increase was in the Compact Equipment Products Division in which revenues jumped 24 percent from €47 million a year ago to €59 million this year. In North America, the division recorded a growth in its business activity with regional and national rental companies. It also benefited from more favorable exchange rates for its exports outside the United States.
Manitou’s Material Handling & Access Division remains the biggest, with third quarter sales of €232 million, a 6-percent year-over-year increase compared to the previous year, along with a 15-percent leap for the first nine months of the year. Driven by demand in the construction and industrial sectors, the division was organized to support the acceleration in demand, with the flexibility of its responsiveness impaired by that of certain suppliers, the company said.
The Services & Solutions Division recorded €63 million in third quarter revenue, an increase in its revenue of 13 percent compared to the third quarter. The division benefited by the market recover, which favored an increase in spare parts business. The division continues to deploy new tools and services on a regular basis.
“The Group saw buoyant activity in the third quarter,” said Michel Denis, president and CEO of Manitou Group. “The order intake momentum confirmed Manitou’s performance and the positive direction of the markets. Adjusted for the unusual activity generated by the developments in European engine standards in September 2016, the growth in sales revenues in the third quarter is close to what we achieved for the first nine months of the year; a performance to be commended in a context of occasional increased delivery times from suppliers.
“From a market perspective, construction continued to enjoy the strongest growth, with mature countries seeing continued momentum in the rental companies. The agricultural sector, still affected by the low food prices, maintained the same level as last year, thanks to the modernization of the Manitou range of products. Lastly, the recovery in the prices of raw materials bodes well for improved business in the mining sector. The current depth of the order book and the positive outlook mean that we can confirm our prospects for 2017.”
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.