08.05.2024

Slow start for Manitowoc

Manitowoc Crane, which also includes Grove and Potain, has reported its first quarter results, with lower revenues and profits, but higher order intake.

Revenues for the three months to the end of March were $495.1 million, down 2.6 percent on the same period last year. However, order intake in the quarter improved 5.6 percent to $554.1 million, creating a backlog/order book at the end of the first quarter of $971.3 million, down just 3.5 percent at the end of March 2023.

Pre-tax profit for the period dropped 69 percent on the year, from $20.7 million to just $6.4 million, almost entirely due to lower revenues at the same production costs, plus a little extra sales & admin expense $600k of restructuring cost and slightly higher interest payments.

Chief executive Aaron Ravenscroft said: “Manitowoc’s first-quarter performance was in line with our expectations. Although we continue to face unfavourable mix with the continuing slowdown in the European tower crane market, our orders in the first quarter were up 5.6% year over year; we ended the quarter with a strong backlog. As we look at the balance of 2024, we remain focused on reducing our inventory and generating free cash flows.”

Vertikal Comment

While this is a negative performance from Manitowoc it is better than some expected and has some positive aspects in terms of order intake and margins.
In terms of product acceptance and reaching new and lapsed customers the company is making better progress than the first quarter results might suggest.

The sluggish tower crane market is not helping of course, given the strong market share Potain has. There remains much to go for in terms of All Terrain and Rough Terrain crane sales, while it also has interesting potential with its sales and service outlets.

Not a great start - but not that bad either.