09.10.2014

Manitowoc cuts forecasts

Manitowoc has issued a preliminary statement for the third quarter which show revenues marginally lower than in the same quarter last year, at around $1billion.

Earnings Before Interest Tax, Depreciation and Amortization are expected to have fallen around 20 percent to approximately $90 million in the third quarter.

The company now expects crane sales for the full year to come in between five and nine percent below that of 2013 - when it posted revenues of $2.5 billion.

Chief executive Glen Tellock said: “Our third-quarter results remain challenged by a constrained demand environment globally. In the Crane segment, sales were further impacted by the North American Rough-Terrain and boom truck markets, as well as weakness in the Latin America region. Given these results, we are updating our full-year outlook for both Cranes and Foodservice. We have ongoing confidence in the strength and long-term outlook of our business, including the recently announced cost-saving expectations. While we continue to be faced with challenging and uncertain market dynamics, we are focusing on those areas within our control to drive long-term, profitable growth.”

Vertikal Comment

The first half numbers for the crane division were down 10 percent on 2013, so while this news is disappointing, it suggests that the second half could be marginally better than the first half, although the market remains fragile in some sectors and regions.

Full results will follow in a week or two.