Haulotte is optimistic about 2017
After some positive results by other European manufacturers, Haulotte Group has reported a 15% fall in operating income for the 2016 financial year despite increased revenue.
Revenue reached EUR457.8 million (USD486.5 million), up from EUR445.3 million (USD473.2 million) in 2015.
The company notes that the aerial work platform market continued to see volume growth in 2016, driven by Europe and, to a lesser degree, by the Asia Pacific. In this context, Haulotte Group saw 4% revenue growth (excluding foreign exchange) between 2015 and 2016, driven by the return to investment of European rental companies (+ 20% at constant exchange rates) and sustained growth from service activity (+ 11% at constant exchange rates).
In a market that remained at its highest level, Haulotte Group faced increased competitive pressure throughout Europe all year, resulting in an unfavourable product mix change, it notes. This had a direct impact on 2016 current operating income (excluding impact of exchange rates), which declined by 15% and now stands at 6.1% of sales, despite an improvement in industrial performance.
Operating income was also affected by a negative exchange result due to the evolution of the post-Brexit pound, and now stands 24% down, compared to 2015.
The annual results also show a time extension of Haulotte’s syndicated loan, providing some visibility on its financing needs until September 30, 2019.
Driven by well-oriented business activity, mainly in Europe, Haulotte Group is expected to surpass 5% revenue growth in 2017, which should enable it to return to a level of current operating profitability of 7%, despite the expected rise in raw materials prices.