31.10.2024

Softer quarter for Manitowoc

US based crane maker Manitowoc, which also owns Grove, Potain and National Crane has reported its third quarter results

YTD
Total revenues for the nine months to the end of September were $1.58 billion, just over three percent lower that at the same point last year. At the same time order intake has continued to keep pace with shipments coming in at $1.61 billion. The backlog/order book at the end of September bounced back to $1.03 billion, just over 10 percent higher than at the same point last year. Pre-tax profit for the nine months plunged from $46.1 million to just $2.3 million – due to the lower volume, higher interest costs and a little more restructuring cost.

Third Quarter

Total revenues for the quarter were marginally higher at $524.8 million however, Order intake fell 20 percent to $424.7 million, leaving the in backlog at the end of September 28 percent lower at $742.1 million.
Last year’s $10.4 million Pre-tax profit turned int0 a loss for this year of 7.3 million, largely due to a spike in cost of sales.

Full year forecast
The company increased its full year revenue forecasts in August, to between $2.17 and $2.22 billion. It now looks that barring a strong last minute pick up that can be handled from units in stock, it is likely to come in at the lower end of those expectations.

Chief executive Aaron Ravenscroft said: “During the quarter, we made good progress on our CRANES+50 strategy; non-new machine sales reached a new high of $617.5 million for the trailing 12 months. Demand, however, for new cranes slowed as customers await the outcome of the U.S. election and further interest rate cuts. Given the soft results in the third quarter, we are expecting our full year adjusted EBITDA to be at the low end of our guidance. Strengthening our balance sheet with a focus on working capital remains our top financial priority,”

“Looking longer term, we are optimistic as central banks continue to cut interest rates, monies from the Infrastructure and CHIPS bills begin to flow, activity in the Middle East remains strong, and crane fleets age to historic levels. As we continue to launch new machines and execute our CRANES+50 strategy, we are well positioned to capitalize on these trends.”

Vertikal Comment

These numbers are broadly in line with what other crane and aerial lift manufacturers are seeing, although the sharp rise in third quarter costs which took the bottom line into the red is more severe than most and may be related to product mix and other factors?

The company will hold its quarterly conference call and presentation this afternoon when we will learn more. Looking further out though the company remains in pretty good shape for 2025.

We will update this item if and when we learn more.