Gehl Layoffs Coming... for Brass?

Manitou, the French owner of Gehl Manufacturing, says things are looking up for 2010. They predict single-digit growth by the end of the year (that beats the 54% drop in business for 2009). The also say Gehl had a good January, perhaps enough to "help resolve the situation" with Gehl's creditors.

But the nervous line of the latest Gehl news:

In the coming weeks, Gehl will adopt a leaner management structure, with some key executives likely to leave the company, said Manitou [Murray Pollak, "Manitou inventory sales helps final quarter figures," International Rental News, 2010.02.05].

Leaner management structure—not the words you want to hear if you're clinging to a job. The rank and file who stood far too idle at the Madison plant over the past year can perhaps take small comfort in knowing the brass are about to share their pain.

Gehl in Technical Default; Manitou Negotiating with Bankers

The recession is still beating up local manufacturer Gehl. The company is in technical default, meaning they're making their payments but are out of compliance with some aspect of their debt contracts. Parent company Manitou, still shaking its head over its really bad timing in acquiring Gehl just in time for the recession, is negotiating with Gehl's banking syndicate. (More details here.)

Quiet Christmas for Gehl: Manitou Predicts Q4 Sales to be Low Point

Workers at Gehl may not get back to full hours any time soon: parent company Manitou saw third quarter revenue drop 47%. Manitou expects rotten sales to continue through the fourth quarter. But on the bright side, Manitou president and CEO Jean-Christophe Giroux sees orders picking up a little and sales perhaps picking back up in 2010.

Madison's sidelined Gehl workers aren't the only one hoping sales have hit bottom and are ready to bounce back: Manitou has cut 35% of its workforce just this year.

Digging for more bright side? Turn perhaps to Australia, where distributor LiftRite signed a long-term agreement this month to carry Gehl skid loaders. Long-term—let's hope that's the key word!

Gehl Going Bankrupt? Manitou Walking Away?

Uh oh:

Shares in Manitou (MANP.PA) fall as much as 11 percent after the French maker of forklifts posts a drop in 2008 net profit and says its U.S. Gehl unit could file for Chapter 11 bankruptcy protection.

"Depreciation relating to Gehl reduces 2008 net profit to 4 million euros whereas the market was expecting 45-50 million and the lack of an agreement with banks relating to Gehl is weighing on the stock," Portzamparc analyst Aurelien Ripoche says.

Manitou can pursue further talks with its banks over Gehl or let it file for Chapter 11, Ripoche says, adding: "The best is to find an amicable solution."

Shares in the company are 3.1 percent lower at 4.70 euros by 0953 GMT ["Manitou Falls on U.S. Gehl Unit," Reuters Stock News Europe, 2009.04.01].

Manitou, which appears to have acquired Gehl at the worst possible time just last year, appears to be looking for a way out. This USAgNet report says Manitou might be acting like a homeowner whose mortgage is upside down and walking away from payments on an investment that's no longer worth the effort.

Can't blame the LAIC for that one... but if Manitou isn't just blowing smoke for some hardball negotiation strategy, we may have some serious economic redevelopment to do. Anyone care to buy Gehl back? Given that Manitou spent $331M on stock to gain control, even with stock values down, I think we're going to need a bigger kitty than Forward Madison has to pull that deal off. Ideas, anyone?

Make That Le Gehl: French Manitou BF Buys Madison's Biggest Employer

Today's RealMadison.org feature: Wisconsin-based skidsteer maker Gehl Co. has signed an acquisition deal with Manitou BF of France. Manitou is buying up Gehl stock and hopes to gain full control of the company by October.

Gehl employs almost 400 workers here in Madison, almost twice the workforce of Dakota State University. How will the acquisition affect those jobs? No explicit mention of layoffs yet, but the numbers from Manitou say that once the deal is completed, Manitou will employ about 3,500. Manitou says it currently employs about 2,800, while Gehl employs about 900. Hmmm... might want to start learning French!

More numbers and links at RealMadison.org!

-----------------
Update 2008.10.02: Manitou communications officer Damien Cocton replies on the discrepancy in job numbers, seems to say the difference is based on changes already committed since 2007. Read his e-mail for yourself at RealMadison.org.