09.12.2011

Manitowoc updates fourth quarter outlook

Manitowoc has announced a reduction to its fourth quarter forecasts due to component delays and the on-going machinists strike at its Wisconsin plant.

In a statement the company said that “recently identified supplier delivery issues with certain hydraulic components, will delay the shipment of some crane products into the first quarter of 2012.”

In addition it says that the strike by the International Association of Machinists workers, looks like continuing after negotiations held in front of a federal mediator failed to make meaningful progress.

As a result of these two factors the company expects the reduction in revenues of around $35 million and in operating earnings of $10 million. In addition, the timing of cash collections due to the production disruptions and inefficiencies is expected to result in the company’s debt reduction being near or below the low end of its previously announced $150 to $200-million target range.

The company added that in spite of the difficulties, order intake has remained at levels consistent trends of the previous four quarters. Chief executive Glen Tellock said: “With the exception of the crawler crane product line that has remained relatively soft, we are pleased with the order activity for other products in most markets. In addition, our Foodservice business continues to perform well, and in accordance with the guidance we provided in our third-quarter earnings announcement.”