27.10.2014

Manitowoc Crane slides 8.5%

As already indicated Manitowoc has reported a fall of 8.5 percent in its nine month crane revenues, while profits fell more steeply.

Year to date revenues for the crane business were $1.64 billion, 8.5 percent lower than for the same period last year, while operating profits dropped 28 percent in the period to $118.6 million.

In the third quarter crane sales were $569.2 million, 6.5 percent down on the same quarter in 2013. The company says that the decline was due largely to a decrease in boom truck and Rough Terrain crane shipments. Operating profits for the quarter were down 25 percent to $41.6 million, due to the lower volumes.

On a positive note, the crane order book/backlog at the end of the quarter was up 26 percent on the same point last year at $715.6 million – slightly down on the quarter. Order intake over the quarter improved and was 24 percent higher than last year.

Manitowoc as a whole saw revenues fall just three percent in the first nine months to $2.85 billion, while pre-tax profits for the period slumped 20 percent to $131 million.

Chief executive Glen Tellock said: "Our third-quarter results reflect the muted demand environment brought on by uncertainty in the global economy. This cycle has proven to be unlike any other, and our performance in times of uncertainty will depend in large part on our ability to improve the agility of our business by focusing on the areas that are within our control. We have maintained an unrelenting commitment to innovation, product quality, and reliability, while concurrently executing our lean manufacturing, sourcing, and cost initiatives across the enterprise. This focus will ultimately position Manitowoc for long-term growth and profitability.”

“The continuing decline in the Rough Terrain crane and boom truck markets in North and South America have continued to negatively impact our Crane performance. However, we remain focused on the areas of the business within our control, which include executing our manufacturing initiatives and capturing purchasing savings as we strive for improved performance to close out the year. In addition, we will continue to drive cost-savings initiatives to mitigate weaker outlooks within select product categories and end markets.”

Vertikal Comment

While a fall such as this is a setback after the solid progress made over the past year or two, it is not as bad as we feared and a less negative result in the third quarter, coupled with the upturn in order intake is at least encouraging. However the results do clearly show how fragile the current economic situation is.

Having said that Manitowoc is still relatively well placed to do well when certain markets - mid size crawlers and tower cranes - do start to accelerate their crane replacement programmes.

Steady as she goes.