Market pressure is challenging Haulotte’s results

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Haulotte reported strong sales for the first half of the fiscal year, but the company’s operating results continued to be impacted by market challenges.

Sales for the half year reached €289.1 million, up 15% over the previous year, and were particularly strong in the second quarter at €153.3 million, up 11% over the previous quarter.

The Move Up 5.6 from the new Haulotte line. (PHOTO: Haulotte)

However, the operating result excluding foreign exchange gains and losses recorded a loss of 0.8 million euros in the first half, compared to a result of 11.4 million euros in the first half of 2021, which was impacted by increased prices for components, energy and transport – which amounts to a decrease of almost 22 million euros in the reporting period.

The company said: “In an environment severely disrupted by the aftermath of the health crisis and the conflict in Ukraine, the global aerial work platform market remained particularly dynamic in the vast majority of regions in the first half of 2022, despite continued momentum and supply difficulties for certain key components which a large part of the manufacturers is confronted with.”

Satisfactory turnover

In Europe, despite the invasion of Ukraine and the consequences for activities in the Russian market, group sales increased by 8%. In Asia-Pacific, half-year sales rose 53%, driven primarily by Australia, with sales in China holding steady over the period in a market severely hit by Covid-19.

North American sales continued to grow at 7%, benefiting from healthy scaffolding business, which grew 35%. The company’s AWP business posted a modest -3% decline despite a very sharp increase in the order book, which was severely penalized by component shortages, Haulotte said. In Latin America, the group’s business grew by 25%, driven by Brazil.

In the first half of the year, equipment sales grew 15%, rental activity grew 23%, and finally service activity grew 12%.

The Group’s net profit was 2.2 million euros, positively influenced by foreign exchange gains and mainly due to the strong appreciation of the US dollar against the euro.

capital requirements

Haulotte’s capital requirements increased further during the period by €47.2m to €229.8m, including a €31.6m increase in inventories as a result of component shortages and their impact on the production cycle and increases in production rates due to strong growth in order books.

As a result, the Group’s net debt was EUR 189.8 million, an increase of EUR 48.9 million over the period. In addition, Haulotte received a €96 million government-guaranteed loan in June.

Referring to the company’s historic major order, Haulotte forecast sales growth of more than 20% in 2022 despite ongoing supply difficulties for certain components, although the group has revised its 2022 operating margin targets due to the many uncertainties remaining in the market, it said .

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