21.02.2022

Strong order intake for Manitowoc

Manitowoc has reported its full year results for 2021.

Total revenues for the 12 months were 20 percent up on 2020 at $1.72 billion, helped slightly by favourable exchange rates. Pre-tax profits for the period was $17.1 million, compared to a loss of $2 million in 2020. The company ended the year with its strongest backlog/order book in 10 years at $1.01 billion, up 86 percent on the year.

In the fourth quarter, sales increased almost 16 percent to $497.8 million, with order intake topping $615 million. However lower margins, a $13 million unfavourable exchange rate shift, and a $13.9 million charge for a legal issue with the U.S. Environmental Protection Agency see: (Manitowoc in EPA discussions) resulted in a pre-tax loss of $3.6 million, compared to a $1.8 million profit in the same quarter of 2020.

Chief Executive Aaron Ravenscroft said: “In spite of the multitude of operational challenges we faced during the year, the Manitowoc team ended the quarter exceptionally strong and delivered great results. As the crane market dynamics remain robust, orders for the quarter increased 21 percent year over year, and our backlog ended the year in excess of $1 billion, our highest level in over 10 years. This improved demand combined with our recent acquisitions provide us with a solid foundation as we focus on growth in 2022 and beyond. As previously indicated, we will continue to battle inflation, parts shortages, and logistic disruptions. However, we expect those headwinds to subside as the year progresses.”

“On the back of our four strategic initiatives, we are introducing Cranes+50, which codifies our ambition to increase our non-new machine sales by 50 percent over the next five years. Growing our aftermarket business is critical to reducing our cyclicality and expanding our margins long term.”

Vertikal Comment

While 2021 was a far better year for Manitowoc than 2020, it has experienced a few challenges over and above the supply chain issues that everyone is facing. However order intake is strong and looks to be gaining momentum. The service and distribution acquisitions of H&E Equipment and Aspen will also kick in this year, and perhaps help take the company back over the $2 billion revenue level, for the first time since 2014?

All in all, a positive set of numbers with the possibility for a much better year in 2022.