28.07.2005

Manitowoc report record first half

The Manitowoc Company achieved record net sales and earnings for the six months to June 30, 2005. Net sales increased 23 percent to $1.15 billion, compared to the same period in 2004.

Net earnings for the period were $30.5 million, an increase of 45 percent from the $21.0 million in 2004.

Manitowoc’s crane group outpaced the rest of the company, with revenues up 35 percent to $785 million and operating income rising by 100 percent to $56 million.

"We serve the diverse needs of the lifting industry by offering all of our products on a global basis," said Terry D. Growcock, Manitowoc's chairman and chief executive officer. "The Crane segment achieved double-digit, year-over-year sales growth this quarter in all product categories and regions, with the exception of the North American crawler crane market, which remained flat.

Crawler crane utilisation and rental rates continue to improve, which suggest that the North American market may rebound later in 2005," Growcock added.

"The Crane segment's improving financial leverage which resulted in strong operating results also translated into improved EVA performance. In the first quarter, the Crane segment generated positive EVA for the first time in three years, and this quarter the segment more than doubled its EVA contribution.

"Cranes' backlog of $530 million at the end of the quarter is also noteworthy because we have been able to sustain our backlog at levels more than 50 percent higher than those at the end of 2004," Growcock said.

"The Manitowoc group, once again delivered outstanding results," said Growcock "Our long-term strategy for global expansion, strategic acquisitions, and new product development has created a solid platform for growth and profitability. We are well positioned to take advantage of increased market demand with our diverse product offerings."

Manitowoc is upgrading its forecasts for the full year, anticipating a mid teens year on year percentage revenue growth with profits rising by a significantly higher level. Earnings per share are likely to be up by 45 to 55 percent.