While Manitou’s revenues for the first nine months of the year were up 18 percent compared to the same period in 2018, the company has seen “the start of the slowdown already announced,” says Michel Denis, president and CEO. Revenues for the quarter are 4 percent above 2018’s 3Q results.
Manitou says “order intake is down, as a result of declining markets (particularly in the U.S. and northern Europe) and the shortening of our delivery times, allowing our order book to match the deadlines adapted to our customer needs.” U.S. results were also affected by a flood-related 6-week shutdown of the company’s Madison, South Dakota, plant.
Manitou says the downturn is not expected to affect its expectation of a 10-percent revenue growth this year, compared with 2018. In addition, “we expect a lower increase in current operating income in 2019, by 10 to 30 basis points,” says the company.
The company reported the following division outcomes:
Material Handling & Access: The division reported an increase of 6 percent compared with 3Q 2018 and 21 percent over the first nine months of the year. It is continuing to adjust its production capacity to match declining market declines.
Compact Equipment Products: The division saw a decrease of 7 percent in revenues for the quarter compared to 3Q 2018, but an overall increase of 10 percent year to date. The Madison plant has now recovered its production capacities lost in the flood.
Services & Solutions: Recording an increase of 9 percent during the quarter, the division also saw an increase of 12 percent during the first nine months, compared with last year. The division is continuing its development work on spare parts and attachments and accelerating its growth in service activities.