Sales are up at Manitou; legal action still looms

Net sales for the first half of the year at Manitou Group were up 17%, compared with the same period of 2017.

The figure for the January-to-June (inclusive) period amounted to €941 million.

Michel Denis, president and chief executive officer of Manitou Group, commented: “Business was buoyant in all geographies and in our three markets of construction, agriculture and industry.

“In this very favourable environment, Manitou Group continued to expand its product range and gain market share. Production has increased.

“The group achieved another record quarter. Revenue grew by 17% during the first half of this year, compared with the first half of 2017.

“This growth made great demands on our operational chain, which remained tense but under control. The increased production rates enabled us to accelerate the reduction of the depth of the order book – something we want to continue.”

He continued: “At this stage, the impact of changes in import duties in certain countries resulted in an increase in production costs in the US.

“The performance achieved in the first half-year, the favourable economic context and the size of our order book allow us to confirm our expectations of sales revenue growth of more than 15% for the [whole] financial year.”

Litigation

In its financial statements, Manitou Group also makes reference to being sued in France, the UK and Italy in May 2017.

The statement said: “Legal proceedings continued during the first half of 2018. During these proceedings, the plaintiff increased his request for a provision from €20 million to €50 million for France, without, however, substantiating this request.

“At this stage in the proceedings, the financial risk likely to be incurred is difficult to estimate. In addition, an outflow of resources in respect of these claims appears unlikely given Manitou’s defence elements.

“Consequently, no provision for these claims has been recorded in the group’s financial statements.”

Manitou Group encompasses not only the Manitou brand but others too (including Gehl and Mustang).