Manitou grows 3Q revenues by 4%, sees “begin of slowdown”
Whereas Manitou’s revenues for the primary 9 months of the yr had been up 18 p.c in comparison with the identical interval in 2018, the corporate has seen “the beginning of the slowdown already introduced,” says Michel Denis, president and CEO. Revenues for the quarter are 4 p.c above 2018’s 3Q outcomes.
Manitou says “order consumption is down, because of declining markets (significantly within the U.S. and northern Europe) and the shortening of our supply occasions, permitting our order e book to match the deadlines tailored to our buyer wants.” U.S. outcomes had been additionally affected by a flood-related 6-week shutdown of the corporate’s Madison, South Dakota, plant.
Manitou says the downturn shouldn’t be anticipated to have an effect on its expectation of a 10-percent income development this yr, in contrast with 2018. As well as, “we count on a decrease enhance in present working revenue in 2019, by 10 to 30 foundation factors,” says the corporate.
The corporate reported the next division outcomes:
Materials Dealing with & Entry: The division reported a rise of 6 p.c in contrast with 3Q 2018 and 21 p.c over the primary 9 months of the yr. It’s persevering with to regulate its manufacturing capability to match declining market declines.
Compact Tools Merchandise: The division noticed a lower of seven p.c in revenues for the quarter in comparison with 3Q 2018, however an total enhance of 10 p.c yr up to now. The Madison plant has now recovered its manufacturing capacities misplaced within the flood.
Companies & Options: Recording a rise of 9 p.c in the course of the quarter, the division additionally noticed a rise of 12 p.c in the course of the first 9 months, in contrast with final yr. The division is constant its growth work on spare elements and attachments and accelerating its development in service actions.