03.05.2012

Manitowoc up 29%

Manitowoc cranes has reported a strong first quarter with revenues up 29.3 percent while profits increased over 80 percent.

Revenues for the crane division totalled $507.9 million - 29.3 percent higher than in the first quarter of 2011, while operating income jumped almost 82 percent to $22.5 million.

Order intake for the period was more than 10 percent up on last year at $675 million, taking the order book/backlog to $931 million, up 16 percent compared to this time last year and over 22 percent up on the quarter.

The company says that sales were driven primarily by continued growth in the Americas, as well as sustained demand in most emerging markets mitigated by weakness in European markets.

The improved profitability was a result of the higher revenues, partially offset by increased material costs and product mix.

The Manitowoc group as a whole saw first quarter revenues grow by 17.5 percent to $860 million, while last year’s pre-tax loss of $15.8 million was converted to a profit of $10.9 million.

Chief executive Glen Tellock said: “The core tenets of our strategy – superior products, unrivalled aftermarket support, capitalizing on global growth opportunities, and driving operational efficiencies – continue to differentiate us in the marketplace and solidify our position as a leading manufacturer of cranes and foodservice equipment.”

“The first-quarter Crane results reflect another quarter of strong order intake driven by robust demand in the Americas, as well as growing interest in the new products we introduced in 2011. In addition, our backlog reached the highest levels since before the recession. In Latin America, I am pleased to announce the recent opening of our new facility in Brazil, with the first deliveries expected in mid-year. The facility, located in Passo Fundo, gives us a competitive advantage as the first global crane manufacturer to produce Rough-Terrain cranes in this part of the world.”

Vertikal Comment

An excellent set of numbers from Manitowoc, with its best revenues and order book since 2009. More importantly perhaps is that the company has pulled away from its main competitor - Terex - in terms of revenues and backlog. While one quarter does not make a year or establish a trend, it does make for an interesting comparison given the similarity in the two companies product offerings.

The difference almost certainly reflects Manitowoc’s stronger position in the North American Rough Terrain market which, seems to be driving the current crane market growth.

While both companies still have some way to go to get back to the glory days of 2008 and 2009, it is encouraging to see the improving upward trend. Long may it continue.