Second quarter loss for Manitowoc
Manitowoc has released its half year and second quarter numbers which show the deepening effect of the Covid-19 pandemic.
Total revenues for the six months to the end of June were $657.5 million, 28.5 percent down on the same period last year when the company was going through a positive upswing. The order book at the end of June was 17 percent lower than at the start of the quarter at $430.5 million, 23 percent below where it was last year. The company posted a pre-tax loss of $17.9 million, compared to a profit in the first half of 2019 of $26.5 million.
Second quarter revenues were 35 percent lower at $328.3 million, with a pre-tax loss of $12 million compared to $49.9 million last year. Order intake was just $238 million, down 36 percent on the same period last year.
Incoming chief executive Aaron Ravenscroft, said: “Our second quarter adjusted EBITDA of $7.8 million reflected good operational performance and was in line with our expectations, considering the vast challenges posed by the ongoing Covid-19 pandemic. I am proud of our team’s resilience as we continue to operate with excellence and meet our customers’ expectations, while protecting the wellbeing of our employees and partnering with our supply chain during this global pandemic.”
“During our 117 year history, we have endured several unforeseen crises, and I am confident we will successfully navigate this one as evidenced by our prudent cash management and ample liquidity of $375 million. The strengths that are core to Manitowoc's business – our people, our products and brands, our network and our operational excellence – guide every decision we make and position us for success when demand returns.”
This is not at all unexpected, the pandemic has hit most manufacturers hard, as rental companies have postponed orders, and in fact some have cancelled them, or stated that they cannot take delivery for the moment. While the market is likely to bounce back, hopefully by the end of the year, if not then in 2021.
Ravenscroft however may well have a good few additional challenges facing him, in that the company appears to have ostracised a good part of the American crane buying fraternity and the industry in general with its call for the implementation of tariffs or quotas on all crane imports – apart from its own. It could well be that there is a silent majority out there that applaud the move, in which case the company will benefit more than others from a bounce back and pent up demand. If I was a betting man however…
In summary the half year results are not so bad given the current crisis and are in line with what we would have expected. The key thing now though is how order intake has been in July, and the start of August, we might hear more on that during the conference call tomorrow?