Manitowoc gains momentum
Manitowoc has reported its half year/second quarter results which show a strong pick up in orders, sales and profitability.
Total revenues for the six months to the end of June were $817.9 million, up 24 percent on the same period last year thanks to higher sales and an advantageous currency swing. Order intake jumped to $1.01 billion, an increase of 65 percent on last year, while pre-tax profits came in at $23 million compared to a $17.9 million loss this time last year. This in spite of a steep rise in engineering and administration spending.
Moving onto the second quarter, revenues were almost 42 percent higher at $463.6 million, while order intake more than doubled to $537.2 million. Pre-tax profit came in at $21.9 million compared to a loss of $12 million in the same quarter last year.
Manitowoc has also updated its full year forecasts - excluding any impact from the pending acquisition of the crane business of H&E Equipment Services
. It now expects revenues will be in the region of $1.77 to 1.82 billion, an increase of around 25 percent on 2020.
Chief executive Aaron Ravenscroft said: "I am very pleased with our performance in the quarter, particularly in June, as we were able to minimise the operational impact due to the cybersecurity incident
. I especially thank our IT team members for their tireless efforts in resolving this matter in such an expeditious fashion. Demand for our products continued to exceed our expectations as we capitalised on a steadily improving market. Our liquidity remains strong at $454 million, providing us with a strong balance sheet for the pending acquisition of the H&E Equipment Services’ crane business.”
“As we previously mentioned, the second half of 2021 will present challenges on various fronts that our teams are proactively managing. Rising inflation, supply chain shortages, and skilled labour constraints are headwinds that will be more impactful throughout the remainder of the year. Despite these challenges, we continue to invest in our long-term strategy to grow the company by executing our four strategic priorities.”
This is a very encouraging set of numbers from Manitowoc, which is beginning to look as though it is ‘on a roll’, with sales and order intake rising rapidly. At the same time the acquisition of H&E later this year, should make a substantial impact on the company’s after market business, which is less cyclical than sales of new cranes, while providing higher margins.
A key fact in how well the company does in the second half will be how it manages its supply chain, get this right and we could see revenues closer to the $2 billion level.
The future looks bright.