Michel Denis, President & Chief Executive Officer, stated, "With the announcement of the acquisition of Terex Equipment in India our sales revenue relative to the first quarter of 2016, our activity in the first quarter reflects both the improvement of the performance of Manitou, the recovery of most of our markets, as well as the effects of the scheduled termination of the law on accelerated depreciation of investments in France. The Group's growth was experienced across its entire geographical range. In the construction sector, growth was particularly dynamic in Europe and in North America, with that region experiencing a major upsurge in rental companies. In the agricultural sector, the launch of our new range of telescopic handlers has a positive impact on our growth in an agricultural market that “With an increase of +22% in remains depressed.
The excellent start to the year with a very strong seasonality as well as the size of our order book lead us to raise our anticipation for 2017 with now a growth in sales revenues of 7 to 10% and an improved recurring operating income of 50 to 70 basis points relative to 2016.”
Business Review by Division
The Material Handling & Access Division (MHA) had sales revenue of €260 million ($284M USD), up by +20% on Q1 2016. Growth was experienced across the board in all geographical areas, which led the manufacturing sites to organize so as to support the very significant increase in volumes.
The Compact Equipment Products Division (CEP) had sales revenue of €57 million ($62M USD), up by 40% on Q1 2016. Sales in North America were up sharply, thanks to an upsurge in rental companies. The manufacturing sites adapt to meet the demand.
The Services and Solutions Division (S&S) had sales revenue of €63 million ($68M USD), up by +17% on Q1 2016. The division is experiencing the strongest growth in its activity since its formation. This growth is the outcome of the needs generated by the increasing use of our machines by our clients, as well as the gradual growth in the new services
offered by the division.
Acquisition of Terex Equipment (TEPL) in India
Manitou announced March 26, 2017 the acquisition of TEPL. Founded in 2003, this company is specialized in design, manufacture and distribution of construction equipment, mostly backhoe loaders and skid steer loaders and achieved a €30 million revenue in 2016, mostly in Southern Asia. Manitou Group reinforces its ambitions for the handling market in India and, on a broader level, in Asia and emerging countries. The group will be able to rely on a company already well-established in India and supported by a structured dealerships' network and a solid service organization. This acquisition will thus enable the Manitou group to respond to local markets thanks to a qualitative industrial tool. This acquisition will be finalised over 2017 first semester.
Rick Alton was appointed President of the Compact Equipment Products division, and member of the group's Executive Committee. With a degree from Frostburg State University (Maryland), Rick Alton spent most of his career within JLG Industries where he held various sales and product support roles, including Vice President and General Manager of JLG Caterpillar Alliance Group, and rising to the position of Vice President of Sales, Product Support and Market Development for the International Markets. He later served as Vice President for Distribution
at the Contech Engineered Solutions Group.
For more information, visit www.manitou-group.com