06.08.2012

Manitowoc Crane up 19%

Manitowoc has reported first half revenues up 19% with a steep rise in profitability.

Crane revenues for the first six months were $1.12 billion, 19 percent higher than for the same period last year. Operating income was $70.4 million, 57 percent up on a year ago.

Looking at the second quarter sales improved 10 percent to $610.7 million driven primarily by continued growth in the Americas region, as well as sustained demand in most emerging markets. Operating income improved 48 percent to $48 million. The better margins were due to higher sales volume and operational efficiencies that were partially offset by material cost increases, incremental engineering expense, plus costs associated with the startup of the new manufacturing facility in Brazil and ERP deployments in France, Brazil, and Crane Care.

The crane backlog/order book totalled $944 million as of the end of June, seven percent up on the same time last year and 13 percent up on the quarter.

Chief executive Glen Tellock said: "We maintained solid momentum during the second quarter in our Crane segment, experiencing strong order intake, a growing backlog, and further margin expansion. Similar to the previous quarter, the Americas and most emerging markets demonstrated positive momentum, while demand in Europe and China remained challenging.”

“In addition, we saw varied demand levels across our product categories, with large rough-terrain cranes, all-terrain cranes, and boom trucks contributing positively to the second-quarter performance, while crawlers and tower cranes experienced modest demand. Overall, the level of activity we have experienced in the first half of this year supports our assertion that 2012 will be a year of sustained growth."

Total Manitowoc group revenues were $1.866 billion for the six months 11 percent higher than a year ago, while pre-tax profits were 65.7 million compared to a loss at the same point last year of $12.8 million.

Vertikal Comment

Another excellent set of results for Manitowoc, the company is benefiting from the upturn in the US Rough Terrain crane market as well as the improving world wide tower crane market.

While it is holding its own in the All Terrain crane market it will be looking to gain market share as and when the European market comes back and in emerging markets as they start to take more All Terrain cranes.

The company looks set for a solid year in 2012.