13.10.2010

Manitowoc holds steady

Manitowoc has announced approval of its credit amendment and given a preliminary estimate of its third quarter results.

The company has obtained the required approval from its senior lenders for an amendment to its credit agreement that becomes effective with the pay down of term debt from the issuance of at least $500 million of senior unsecured notes.

Glen Tellock, Manitowoc's chief executive said: "This amendment provides us with increased flexibility as we navigate through the challenges posed by the current economic environment, enabling us to strategically position our business to take maximum advantage of global market opportunities as our end markets recover."

The company has also announced its preliminary third quarter 2010 expected results. Crane division revenues are expected to come in close to those of the same quarter a year ago and as per the last two quarters at around $440 million.

Operating income has taken a tumble though at $16 million compared to $20.8 million last year. While the crane backlog has slipped to $450 million from $667 at this point last year and $531 million at the end of the second quarter this year.

The company’s debt reduction plans continue apace, with a further $40 million
cut in the three months to $2.168 billion.

"While we continue to experience increasing demand in emerging markets, particularly in Asia and Latin America, the environment in North America and Western Europe remains challenging. The results in our Crane segment reflect these economic pressures. Even so, we believe this business is positioned to emerge stronger and more nimble as the environment improves,” said Tellock.

"Despite the lower than anticipated third quarter revenues in our Crane segment, we still have an opportunity to achieve our second half of the year revenue guidance for Cranes. In addition, we are reiterating all the other elements of our previous full-year guidance."