French Haulotte sees sales slowdown
PARIS, July 28 (Reuters) - France's Haulotte (PYHE.PA) said on Monday it expected its 2008 sales to fall and it would not be able to return to double-digit net income growth, due to rising raw material prices and a strong euro.
"In light of weakness in the European market in the first half and the wait-and-see approach adopted by a number of equipment rental customers in response to more challenging economic trends, it is not possible to issue reliable forecasts for 2008," it said.
The material-lifting equipment group said first-half sales fell 17 percent to 258.7 million euros ($406.2 million) while net income was up 39.5 percent to 52.2 million.
Haulotte said it started a cost-reduction program targeting 10 percent of fixed costs in the second half.
This plan does not affect measures to increase production capacity in Romania, the company said. This manufacturing unit that represents an investment of 23 million euros will be operational in the first half of 2009.
Haulotte said it had a solid financial position despite the significant increase in inventory at the end of June. (Reporting by Marcel Michelson; Editing by David Holmes)
