06.05.2021

First quarter pick up for Manitowoc

Manitowoc has reported higher sales and a return to profit for the first quarter to the end of March.

Total revenues were $354.3 million, up 7.6 percent on the same quarter last year, with a pre-tax profit of $1.1 million compared to a loss of $5.9 million last year. The improvement is largely down to the higher volumes and some currency exchange factors. Order intake increased by more than 26 percent to $473.6 million, taking the backlog/order book at the end of March to $662.5 million, up 27.2 percent on last year and 22 percent higher than at the start of the year.

Chief executive Aaron Ravenscroft said: “I am proud of our team’s execution during the quarter while navigating through the Covid-19 pandemic. We are encouraged by positive trends in crane demand across all segments, but as the world normalises, we continue to see significant inflationary pressures and a multitude of supply chain challenges.”

“As I have said, 2021 will be a year of transition. We expect inflation and supply chain challenges to persist for the balance of the year, more heavily impacting second half results. While we are taking actions to mitigate these headwinds, we remain resolute in our long term strategy to grow the company by continuing to invest in our four strategic priorities.”

Vertikal Comment

This is a solid start for Manitowoc with a positive set of numbers. It seems that demand is rapidly gathering pace, but the risk looming on the horizon is supply chain issues, including component shortages. This factor is causing concern to most manufacturers, and while it appears wholly negative, there is a chance that there may be a brighter side. If it extends lead times, discounts will surely be cutback, raising prices ahead of any inflationary pressures, while any brake on supply might avoid a possible post Covid boom/bust spike leading to longer more gradual and sustainable growth?

That said this is good start for Manitowoc.