01.05.2014

Weak start for Manitowoc

Manitowoc Crane has reported a 15 percent drop in first quarter revenues, while profits slipped further still.

Total revenues for the period were $466.7 million, 15 percent lower than last year, due mainly to a lower order book coming into the year. Order intake, boosted by Conexpo, was strong pushing the order book up over 47 percent to $842 million.

The company says that sales during the first quarter were driven primarily by activity in the Americas along with improving sales of Potain tower cranes in the Middle East. Operating profit for the period fell 35 percent to $22.6 million.

The group as a whole saw revenues slip five percent to $850 million, while pre-tax profits dropped over 60 percent to $8.6 million.

Manitowoc group chief executive Glen Tellock said: “The first quarter of 2014 played out largely in-line with our expectations, providing the foundation for us to achieve our full-year outlook. The growth we experienced in our Foodservice segment, coupled with Cranes’ very successful Conexpo trade show in March, underscores the strength of our offerings, as well as the level of innovation we bring to our customers.”

“We remain encouraged by the opportunities for our Crane segment, as our exhibit at Conexpo was met with tremendous success and once again demonstrated the importance of innovation to our customers and the construction industry. The introduction of our patented variable position counterweight crawler crane technology drove order intake to its highest level since before the recession, further supporting our belief that the market is beginning to rebound. While we do not believe the market is robust given uneven demand in some product lines and regions, we will maintain our focus on driving growth and enhancing our profitability in this segment.”

Vertikal Comment

This is a disappointing although not entirely unexpected set of numbers from Manitowoc’s Crane operations. However the company did still post an operating profit and has several new winning models on its books, including its new crawler cranes - which many buyers claimed were ‘game changers’, while ‘putting their money where their mouths are’ by placing substantial multiple unit orders for them. The company’s 300 tonne Grove GMK6300 All Terrain also continues to win over buyers which have not purchased Grove before, or at least for some time, while its 400 tonne GMK6400 is beginning to gain converts.

However, while the company significantly outperformed Terex Cranes in the quarter it still has a long way to go to make any dent in Liebherr's leading position in the market.

With all that said this is not as bad a start to the new year as the headline numbers would at first suggest.