25.10.2011

Strong third quarter for Manitowoc

Manitowoc Cranes, which also incorporates the Grove. Potain and National crane brands, has reported a strong improvement in third quarter revenues and profitability.

Nine month revenues to the end of September were up 17.5 percent on last year to $1.48 billion, while operating income improved 15 percent to $67 million. The order book at the end of the period was $775 million, 73 percent higher than it was a year ago, but over seven percent lower than it was at the end of June.

Sales in the last quarter were 20.7 percent up on last year at $529.4 million with operating income of $25.4 million – 58 percent up on last year’s 16.1 million.

The company as a whole, with the food services division totalled $2.62 billion for the nine months almost 14 percent up on the year. Pre-tax profits were $21.7 million, compared to a loss at the same point last year of $19.5 million. The company says that it is now projecting full year’s sales to be 20 to 25 percent up on 2010 and that it will reduce its net debt by between $150 and $200 million.

Chief executive Glen Tellock said: "Our solid third-quarter results reflect the sustained success we are experiencing in emerging markets, particularly those geographies where we enjoy first-mover advantage. We are also executing on our initiatives to drive increased operational efficiency and new product development, enabling us to appropriately allocate our resources to the greatest growth opportunities."

“Looking at the crane business, we saw continued strength in several emerging markets, including Asia, Latin America, India, and the Middle East. North America was also a strong performer during the third quarter as energy and infrastructure projects continued to drive improved sales growth.”

"From a product line perspective, we experienced mixed demand levels, with large rough-terrain cranes and boom trucks contributing positively to the quarter, while crawlers and tower cranes witnessed softer demand in developed markets. Our global distribution network and on-going focus on innovation, quality, and aftermarket support continues to set us apart from our competitors as we focus on further positioning this segment for an improving operating environment."

Vertikal Comment

A very sound and encouraging result from Manitowoc which looks set to finish the year with another solid quarter. It is good to see the crane market and its main players start to bounce back in terms of revenues and profits.

The current gloomy economic news will be a concern of course, but increased infrastructure spending and factors such as new rules and regulations in the USA, will put pressure on contractors to replace old cranes or switch to renting, all of which will help boost both Manitowoc and Terex.

Manitowoc looks to be well placed to benefit from the ongoing growth of its 'bread & butter' cranes in America and emerging markets, while it still has plenty of scope to win All Terrain and crawler crane market share in certain European markets such as Germany, the Netherlands and the UK.

Manitowoc should finish the year with a flourish.