18.10.2017

Slower third quarter growth for Haulotte

Haulotte has issued its third quarter revenue numbers showing a growth of two percent to €106.1 million.

Year to date revenues however are still eight percent higher than last year at €413.9 million. New equipment sales increased nine percent €312.5 million, while parts and service revenues were flat at €36.1 million and rental revenues were €14.4 million.

Sales In the Euro Zone jumped 15 percent, while the Asia-Pacific region, was stable with increased competition in China at the same time as the recovery in the Middle East has yet to get started. In North America sales declined six percent in local currency due to a sharp decline in scaffold sales in the United States, partially offset by a 15 percent increase in aerial lift sales. South American sales improved four percent, even though Mexican invoicing was lower. Rental revenues wer 14 percent higher at €21.2 million.

The company said: “Strong commercial activity, as well as the order book level at the end of September, enable us oo confirm our forecast of annual sales growth of around 10 percent in 2017 and the return to a level of current operating profitability close to 7.5 percent..

Vertikal Comment

Not the greatest result from Haulotte, although its underlying manufacturing businesses remains strong, in the face of increased competition from all quarters - particulatly the Chinese some of which are begining to deliver a quality product at low prices, most particulatly at the smaller end of the market.

This puts extra pressure on the company as it gets squeezed between the low budget manufacturers - mainly the Chinese - and the bigger North American producers. Haulotte does have a few tricks up its sleeve though in terms of new product features and product developement which is possibly highlighted by the higher machine sales in the USA. It also has distribution strength in some key recovering regions, it is still possible that the company will exceed it's current revenue and profit forecasts as it goes into what is traditionally it's strongest quarter..