Haulotte sales slowdown linked to EU tariffs
16 September 2024
Haulotte has reported a slowdown in its main markets for the first half of the 2024 financial year, partly caused, it said by the influx of equipment from China ahead of provisional tariffs being introduced in the EU.
The France-based MEWP manufacturer posted a 10% decline in global sales to €363 million, compared to the same period in 2023, despite a good second quarter.
However, operating income (excluding foreign exchange gains and losses) rose sharply by €17 million to €30 million, resulting in an operating margin of 8.2% of sales, despite the decrease elsewhere in the business.
The increase came from raising the cost of equipment to meet previously higher costs to Haulotte. It was also boosted by a strong market in North America, as well as improving component prices and transport costs. Group net dept was down €30 million to €210 million in the period.
Europe slowdown
In Haulotte’s largest market Europe, signs of a slowdown in investment from customers had been observed since the second half of 2023 and were confirmed in the first half sales figures, said the company, particularly among the major rental companies.
This was compounded, added Haulotte, “by large volumes of equipment imported from China in anticipation of the provisional application of additional customs duties from 12 July.”
As a result, sales were down 21% in the continent over the first half of 2023. In Asia Pacific, sales were also down, by 11% compared with 2023.
North America, driven by an excellent second quarter, continued to post growth of 9% across all the company’s activities, and 14% in its aerial platforms business. In Latin America, sales were stable compared with 2023.
Income boost
The group’s net income stood at €15 million, 4.1% of turnover, a significant growth compared to 2023, despite an increase in expenses (+€3.8 million) and the negative effects of exchange rates over the period, particularly in Latin America.
Looking ahead, Haulotte said increasing uncertainty has led to a forecasted decline in sales of close to 10% for the whole of 2024. Bolstered by its excellent first quarter, however, the group said it should post a yearly current operating margin of more than +5% of sales.
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