03.11.2021

Mixed results from Manitowoc

US based crane manufacturer Manitowoc, which includes Grove, Potain and National Crane, has reported strong year to date numbers with a challenging third quarter.

Total revenues for the nine months to the end of September improved 21 percent over the same period last year to $1.22 billion, while pre-tax profits came in at $21.9 million, compared to a loss of $11.3 in 2020. The backlog/order book at the end of September was almost double what it was this time last year at $890.6 million.

Moving on to the third quarter, sales increased 14 percent to $404.5 million, however material cost increases, along with supply chain and logistics challenges also had an impact on productivity, along with higher engineering, selling and administration resulting in a $1.1 million pre-tax loss, compared to a $6.6 million profit in the third quarter last year. Order intake however improved 37 percent to $535.2 million. The company is now forecasting a full year revenues of $1.72 to $1.775 billion, which would represent an increase of more than 20 percent on the year.

Chief executive Aaron Ravenscroft said: “I am extremely proud of our team’s performance in the face of unprecedented challenges during the third quarter. Inflation headwinds were as significant as anticipated, although parts shortages limited our ability to achieve our forecasted shipments. We were, however, encouraged by strong order rates and continued positive customer sentiment during the period.”

“While we have made significant progress on price increases, we expect inflation and supply chain challenges to persist into 2022. The team remains focused on operational execution, supporting our customers, and growing Manitowoc through our four strategic priorities to enhance shareholder value. As an example, the recent acquisitions of the H&E Equipment Services’ crane business and Aspen Equipment were completed as planned, and we look forward to these acquisitions being catalysts for Manitowoc’s future growth.”

Vertikal Comment

It looks as though Manitowoc was particularly badly affected in the third quarter by raw material costs, and other supply chain problems compared to some other manufacturers. However, the company is far more optimistic for the fourth quarter, expecting sales come in around 23 percent higher than in the fourth quarter 2020. The order intake trends are also looking good for a strong start to the new year, while the substantial boost to its retail and service operations that the H&E and Aspen acquisitions should provide, help make for a bright outlook for 2022 and beyond. Add to that some promising new product introductions in October, and a changing competitive landscape and the future looks bright.