08.02.2005

Manitowoc up 25 percent in 2004

The Manitowoc group, which incorporates, Grove, Potain, Manitowoc and National crane products, has released its results for the full year 2004. Net sales for the group as a whole rose to $1.96 billion an increase of 25 percent on 2003. Net earnings on continuing operations leapt by 220 percent to $39.8 million.

The Crane group saw revenues rise by almost 30 percent to $1.25 billion, with sales in the fourth quarter rising at a faster rate of 45 percent. Operating income for the crane group jumped by over 70 percent to $57.8 million. While the order backlog for the crane group ended the year at $327 million, more than three months of revenues and almost 50 percent higher than at the end of 2003.

"Our Crane segment posted year-over-year improvement in sales, earnings, and margins due to our globalization efforts, as well as our cost reduction initiatives and price increases to offset rising steel prices," said Terry D. Growcock, Manitowoc's chairman and chief executive officer. "Worldwide demand remains strong for our tower cranes, mobile telescopic cranes, and boom trucks and our crawler cranes are doing well outside of North America.

"Last month, we announced plans to build a new manufacturing facility in China to help meet growing demand in Asia," Growcock continued, "and the 15 new products we launched last year have further helped to spur growth. Looking ahead, our strong backlog gives us confidence that worldwide demand for our products continues to grow. Additionally, we see hints of optimism -- including increased utilization rates and quoting activity -- that indicate the North American crawler crane market may gain some momentum later in 2005."

Outlook for 2005

Manitowoc, stated that its strategic objective for the crane group is to “increase crane sales and market penetration globally”.. its new crane manufacturing facility in China is expected to meet, what it calls “ robust demand in Asia,” while 11 new crane products are planned for 2005 following on from the 15 it launched in 2004.

"Looking ahead to 2005, we expect the increased worldwide demand for our crane and foodservice products to continue, and we plan to launch more than 30 new products to capitalize on this demand," said Growcock. "We're continuing to watch the North American crawler crane market, which is showing some encouraging signs, as well as steel and commodity prices, which are stabilizing in certain markets.

"Additionally, we remain committed to the strategic objectives, as well as to our diversified business model, our strong management team, and our global acquisition and new-product strategies to continue to grow our business," said Growcock. "As a result, we are targeting net sales growth in the mid single-digit range and earnings per share of $2.00 to $2.20 for 2005, which reflects our new outstanding share count. We have also set a net-debt reduction target of $50 million, with 2005 depreciation and amortization approximating $50 million, interest expense in the $50 million range, and a global effective tax rate of 30 percent. These estimates do not include the impact of mid-year adoption of the new stock compensation expensing requirements."