04.08.2022

Mixed result from Manitowoc

Manitowoc Crane which owns Grove, Potain and National Crane has published its half year results.

Six months YTD

Total revenues in the first six months increased 17 percent to $956.2 million with strong order intake, leaving a backlog/order book at the end of June of $947.8 million 29 percent up on the same point last year. Pre-tax profit slumped 23 percent to $17.6 million though, mostly due to significantly higher engineering, selling and administrative expenses.

Second Quarter

In the second quarter revenues were just 7.2 percent up in the same quarter last year at $497.2 million, while order intake declined 19.2 percent to $434 million largely due to currency fluctuations which meant that overseas orders in the backlog translated into fewer dollars. Pre-tax profits dropped dramatically, to $8 million down 63 percent on the same point last year, due to the higher costs, but more importantly a lower gross margin.

Chief executive Aaron Ravenscroft said: “Our second quarter results reflect our team's solid operational performance and diligent cost management amid challenging macroeconomic conditions. While our backlog remains elevated due to continued supply chain constraints, order intake began to trend down. It is clear that ongoing global economic uncertainty is causing our customers to remain cautious when committing to future orders.”

“As we enter the second half of the year, inflation, rising interest rates, and geopolitical tensions will continue to hinder customer confidence. Yet, we remain on track to deliver the low end of our adjusted EBITDA guidance. Despite the challenging outlook, we are committed to our four breakthrough initiatives which enable our CRANES+50 strategy and position us to capitalise on the eventual crane renaissance. We look forward to showcasing our progress at the upcoming bauma trade show this October.”.

Vertikal Comment

While these are clearly not the best set up numbers from Manitowoc, they are also not as bad as might have been expected, given the challenges manufacturers are facing. One factor that will start to come to the fore more often in its results are the company’s efforts to reduce cyclicality by investing in the after sales service and distribution side of the business, including the acquisition of H&E Equipment last July and Aspen last August. What impact this will have is har
How second half order intake pans out will be telling for company and the industry as a while will be interesting.