Gehl Sales Drop in 1Q

April 25, 2014

Manitou released its first quarter 2014 sales revenues. While the company experienced an increase in sales over the same period in 2013, Gehl, the company’s Compact Equipment Division, reported a decrease of 7 percent in sales.

The company attributes the division’s decline—to €60.3 million ($83.4 million)—to the cold wave that struck North America in the first two months of the year. Market trends remain favorable and resulted in a high level of order intake and strong growth in the backlog. At the operational level, Gehl is organizing a ramp-up of its production lines to meet the current level of its backlog.

Overall, the company's sales rose 7 percent, to €291 million ($402.6 million), over the first quarter of 2013.

"At a constant scope and exchange rates, first quarter sales increased by 12% compared to Q1 2013 which was relatively low. We are closing the quarter with a large order backlog, especially in the Compact Equipment division,” said Michel Denis, Manitou president and CEO.

With quarterly sales of €200.9 million ($279 million), the Rough Terrain Handling Division recorded an increase in sales of 17 percent as compared to Q1 2013 sales which were relatively low. The agricultural sector, touched by poor weather and low visibility, displayed a moderate increase. Business in the construction sector grew through the renewal of fleets by rental companies.

The Industrial Material Handling Division realized quarterly sales of €30.1 million ($41.6 million), a decrease of 14 percent compared to Q1 2013. At a constant scope (excluding the impact of the termination of the Toyota distribution contract), the division reported growth of 10 percent compared to 2013. 

In the construction sector, the business evolved favorably, with demand from rental companies remaining strong, despite the cold wave that hit North America. In the agricultural sector, the moderate growth in the business illustrates an environment with a higher level of uncertainty, the company says.