05.02.2008

Manitowoc leaps forward

Manitowoc has released its full year 2007 numbers, they show a sparkling set of results for the crane group as the corporation as a whole breaches the $4 billion revenue level for the first time. The crane group continued to drive Manitowoc’s results with sales for the full year up by more than 45 percent to $3.25 billion, over 81 percent of the total group revenues.

Crane revenues gathered pace in the fourth quarter with sales rising by 56 percent to $945 million, putting the crane company on target for $4 billion annual sales on its own, making it the clear market leader.

Operating income for the crane group increased by almost 68 percent to $470 million or 14.5 percent of sales. In the fourth quarter operating income growth was 83 percent! Cranes now represent 84.3 percent of the groups operating profits.

While shipments were exceptionally strong the crane order book continues to increase, rising by eight percent in the quarter and up 88 percent on the same time last year at $2.9 billion.

Overall group revenues grew by over 36 percent to just over $4 billion, a new record, while gross margins grew my almost 41 percent and Pre tax profits were up by over 89 percent to $463 million.

The Food division grew its revenues by 5.5 percent and profits by nine percent while the Marine division revenues increased by 14 percent and profits by 135 percent.

Glen E. Tellock, Manitowoc's president and chief executive officer said: "The Manitowoc Company's exceptional performance in 2007 is an impressive achievement for which every one of our employees can take credit. Led by our Crane segment and supported by strong contributions from our Foodservice and Marine segments, our company's focus on delivering world-class products with superior quality and unrivaled after-market support has been the key to our results.”

“In 2008, we will continue to make significant investments to ensure
that we have the capacity, technology, and people to continue to perform at these levels.

"Manitowoc Crane Group continues to serve as our primary growth driver, our global network of manufacturing and service facilities allows us to be a preferred lifting equipment provider in both established and emerging markets. Much of our planned 2008 capital expenditures will enable Manitowoc to meet the continued strong demand and provide delivery schedules that our customers require.”

“That combination of global reach and responsiveness has been a key factor in our recent performance, and we will make the necessary investments to maintain our leadership position.”

“Our discussions with customers coupled with independent market research all indicate that demand for lift solutions will continue to be strong at least through the end of the decade. Demand for civil infrastructure, new energy and petrochemical capacity, and urban development all point to strong longer-term demand for our line of crawler, tower, and mobile hydraulic cranes. Our minimal exposure to the U.S. housing market reinforces our belief that we have ample opportunity for continued growth."

Vertikal Comment

There is nothing else to say except congratulations Manitowoc!

By any measure Manitowoc has made tremendous progress pushing ahead of the its two main competitors in terms of revenue growth, cementing its position as the largest crane manufacturer, particularly if you look at construction related cranes – Crawlers, mobiles and tower cranes.

The company also appears to be leading the way when it comes to adding production capacity, investing in existing plants and adding new ones, such as the new assembly facility in Slovakia.

The worldwide crane market looks strong for the next two to four years and it looks as though Manitowoc will, at the very least, win its share of the cake and looks set to be the first crane maker to pass the $4 billion sales level.

PS: Vertikal.Net was the first to predict that the group would pass the $4 billion mark See billion for Manitowoc? as well as predicting over $3 billion in crane sales back in September.