27.04.2010

Manitowoc crane drops 45.5 percent

Manitowoc has reported its first-quarter results which show crane sector revenues of $366.8 million, a drop of 45.5 percent compared to the same quarter in 2009.
The operating income for the quarter fell to $4.5 million from $56.5 million in the same period last year.

The crane backlog totaled $613 million as of March 31, 2010, an improvement of seven percent from the $573 million backlog at the end of December.

Manitowoc chief executive Glen Tellock, said: "While the first quarter results reflect the difficult operating conditions we are facing, we reported our first sequential increase in quarterly backlog since June 2008. Consistent with last quarter, we are seeing some bright spots in emerging markets such as Asia, Latin America and the Middle East, which are being offset by continued weakness in North America and Western Europe as expected,"

“Our strategy has not changed, we continue to focus on positioning this business for growth as we emerge from this downturn. We are also taking advantage of our position in emerging markets globally. We have maintained our efforts to strengthen our entire organisation through operational efficiencies and cost management, while investing in areas that will drive the highest return over the long-term such as innovation and aftermarket support."

Manitowoc group revenues for the quarter totaled $721.9 million a fall of close to 30 percent. The company also reported a pre-tax loss of $36.9 million compared to a loss of $689.5 million last year, athough this included a large wite down of goodwill following the Enodis food service deal.

"As expected, we are beginning to see increasing benefits from the operational efficiency, process improvements, and cost reduction initiatives we implemented during 2009. In addition, we are realizing significant synergies from our Foodservice integration success."

"Our attention to cash management was a key consideration during the quarter as we continued to closely manage working capital. Our focus remains centered on optimising Manitowoc's cash generation to achieve near and long-term debt reduction goals, and to enable further investments in our business to drive performance as the markets improve. In addition, we continue to expect Foodservice synergies to exceed $80 million once all integration activities are completed in 2011."

Vertikal Comment

This result is not a surprise and the result is largely already factored into its share price. While the results do not clearly show it, the company is doing well in the region and is well placed for the recovery.

At Bauma last week it had a far more modest stand than in 2007, but it was also far more welcoming and early reports are that the company booked some decent business at the show. The new All Terrain cranes that it launched at the show have been well received and should to well, once they are available.