30.07.2015

Manitowoc Crane slumps 17.5%

Manitowoc Crane has reported a 17.5 percent drop in first half revenues with a steeper decline in profits.

Total revenues for first six months were $884.4 million, down 17.5 percent on the same period last year, due to lower sales of Rough Terrain cranes and boom trucks, - affected by the oil slowdown, while strong sales of tower and All Terrain cranes – both of which are largely produced in Europe – translated into few dollars thanks to the weak Euro. Operating profit for the period was almost halved to $77 million.

In the second quarter revenues fell over 21 percent to $477.7 million for the same reasons as already mentioned. Order intake however held at the similar levels to last year at constant exchange rates but in dollars fell just over 10 percent to $438 million. The backlog at the end of June was $731 slightly up on this point last year. As in the first half operating profit was halved to $26.3 million.

Chief executive Glen Tellock said: “Our second-quarter results were primarily driven by continued weakness in our rough-terrain and boom truck markets, as well as lingering effects of operational issues in KitchenCare and lower capex spending by large foodservice chains. However, improving trends within Foodservice as we moved through the quarter offer confidence that the corrective actions we have implemented are beginning to pay dividends".

"Furthermore, our tower crane and all-terrain crane businesses, on a constant currency basis, continue to track to our expectations. In an effort to mitigate the negative factors impacting our results, we continue to take decisive actions that will enhance our operational performance, optimize our cost structure, and maintain our leadership position through innovation and quality.

Vertikal Comment

Sales of Rough Terrain cranes and boom trucks do not look like they are set to improve any time soon, thanks to the slow-down in the oil industry for sure, but also due perhaps to a loss of market share to Tadano that seems to have hit Grove as well as Terex and possibly Link Belt.

A recovery in the Euro will certainly provide a boost to the numbers when converted to dollars, but the North American market looks set for sluggish single digit growth this year.