29.07.2008

Strong first half for Manitowoc.

Manitowoc crane group, which comprises Manitowoc, Grove, Potain and National Crane, has reported first half revenues up 31 percent to $1.9 billion. Operating income for the period climbed by 40 percent compared to last year to $302 million.

Crane margins edged up to almost 16 percent, in spite of rising material costs, this due, says the company, to improved volumes and product mix.
The backlog at the end of June was 70 percent higher than it was this time last year, at $3.5 billion.

The group as a whole also did well with revenues up almost 27 percent to $2.4 billion, while pre-tax profits were up 48 percent to $330 million.

Glen E. Tellock, Manitowoc's president and chief executive officer said:"The value of the globalisation of our crane business was particularly evident during the second quarter as international activity generated strong sales and earnings growth. Crane backlog, as of June 30, stood at $3.52 billion -- an increase of 70 percent over the same period in 2007. The increase reflected higher demand in each geographic region as well as for aftermarket parts and services. It also indicated continued demand for our high-capacity crawler, tower, and mobile cranes driven by unabated strength in our global infrastructure and energy markets."

Cranes remained at 82 percent of total Manitowoc sales, although during the period its acquisition of British based Enodis was given final approval. The company hopes to close the deal during the fourth quarter. This will then take the foodservices business up into the 30 percent range.

Vertikal Comment

As we predicted at the start of the year, Manitowoc Crane is on target this year to reach or exceed $4 billion in revenues. This puts it on a par with Liebherr and could give it the right to truly claim to be the world’s largest crane maker.

All in all this is a very solid result from Manitowoc which has been taking much of the running in the mobile crane business of late when it comes to adding capacity, expanding its world wide coverage and in terms of developing new concepts when it comes to new product development.