01.02.2011

Manitowoc crane on the rise again

Manitowoc has reported its full year results which show that the crane business grew strongly in the fourth quarter.

Order intake gathered pace throughout the three months pushing revenues up 2.3 percent on last year to $491.4 million and the order book up 28 percent on the quarter to $572 million.

Crane revenues for the full year came in at $1.75 billion over 23 percent down on 2009, while operating profit for the period was reduced from $145 million last year to $89.7 million this year. However the company posted a $30.4 million profit for the fourth quarter compared to $18.3 million for the same period last year.

The group as a whole, which includes the food service business reported revenues of $3.14 billion - 13 percent down on a year ago. The net result was a pre-tax loss of $41.7 million compared to a loss last year of $707.3 million.

The company says that it expects low double digit growth for crane sales in 2011, with margins continuing to improve over the lows seen in 2010.

Chief executive Glen Tellock said: “Exceptionally strong order rates toward the end of the fourth quarter drove year-over-year and sequential sales growth for our Crane segment. North America and Europe are beginning to show signs of modest recovery, and we're encouraged by new orders from dealers that are beginning to replenish their inventories.”

“Additionally, strong operating margins for the quarter resulted in full-year margins well above those witnessed in previous trough years. While we were encouraged by the increasing demand for our products toward the end of 2010, we do expect potential volatility in orders during 2011 as end markets regain their footing."

"We enter 2011 as a much stronger organization, with our Foodservice integration complete and the belief that 2010 was the trough year for Cranes, we view the next 12 months as a transition year for Manitowoc. As such, we anticipate year-over-year growth for both of our operating segments for the first time since 2008."

"We were pleased with the actions taken during the year to diligently manage working capital, amend our credit agreement, and reduce leverage. In combination, these initiatives have strengthened our financial position and provided us with additional flexibility to drive improving performance as we move into 2011. Since acquiring Enodis in 2008 through the divestiture of the Kysor/Warren business in January of 2011, the company has paid down more than $1 billion in debt, while continuing to invest in innovation and new products that are crucial to Manitowoc's and our customers' success."