08.01.2009

Manitowoc anticipates revenue drop

Manitowoc, which also owns Grove, Potain and National Crane has provided an update on its 2008 numbers today, along with a preliminary forecast for 2009.

For the full-year 2008, the company estimates that earnings will come in towards the lower end of its latest forecasts. at around $3.15 or so a share

For 2009 it says that it expects revenues from its crane business to fall by around 20 percent, while its food service business, boosted by the Enodis acquisition, will jump by around 200 percent.

The drop in revenues is largely due to a number of order cancellations particularly for small to mid range tower cranes, largely in Western Europe. Order intake for boom trucks, smaller crawler cranes and Rough Terrains is also softening, while demand for larger cranes and All Terrains remains strong.

The company says that the cancellations are due to the funding crisis and a wait and see policy from some rental companies.

Operating margins for both the crane and food segments are expected to be in the low double-digit percentage range. The company says that the first quarter of 2009 will be tough as order cancellations, on some of its higher margin products knock volume and margins, at the same time as material costs remain hiigh as the company uses up materials purchased prior to the recent falls in commodity prices.