07.11.2017

Progress continues at Manitowoc

Manitowoc Cranes has reported a strong pick up in sales for the third quarter as it nears break even.

Looking first of all at the nine month year to date numbers, total revenues were 11 percent lower than last year at $1.1 billion, while last year’s loss of $233.5 was reduced to $34.9 million this year.

Moving on the to the third quarter total revenues were almost 15 percent higher at $39.4 million thanks mostly to increased demand in the USA, partly offset by lower demand in the Asia-Pacific region. Approximately 40 percent of unit sales came from new products. New orders placed in the third quarter were 21 percent higher than last year at $376.1 million, taking the Backlog/order book at the end of September to $467.9 million, 32 percent higher than this time last year. While the company did not turn a profit in the third quarter last year’s pre-tax loss of 144.2 million was cut to just $3.4 million this year.

Chief executive Barry Pennypacker said: “Our third quarter came in largely as expected, reflecting some signs of positive momentum in certain end markets such as the U.S. energy and commercial construction markets. Orders in the quarter continued to be led by the strength of our customers’ demand for our new products. The structural cost reductions we have made over the last 18 months, coupled with higher year over year sales volumes resulted in significant profitability gains over the comparable period.”

“I am encouraged by the progress we continue to make in streamlining our organisational structure, providing us the necessary momentum to achieve our long term stated goal of double digit operating margins by 2020. Our strategy to evolve into the world’s leading crane company remains on track, as we continue to institutionalise the principles of The Manitowoc Way.”

Vertikal Comment

An excellent third quarter result in terms of revenues and order intake, building on the progress made in the second quarter with the upward trend seeming to gather pace. However the company slipping back into the red, after making a $3 million profit in the second quarter is a shame. But without the $3.7 million in restructuring costs, it would have remained in the black for a second quarter running. It looks though as if product mix and pricing has also put some pressure on margins?

Overall the trend is positive though, and the company is expecting to bring full year revenues in at around $1.5 to $1.53 billion- around five percent or so lower than in 2016, but taking it close to Tadano in revenue terms, while keeping comfortably ahead of Terex. It looks set to remain a long distance behind Liebherr however, making its long term objective to be market leader look very challenging indeed.

All in all a positve result for both the company and the industry.