29.10.2009

Manitowoc sales stabilise

Manitowoc Cranes has reported third quarter sales of $479.5 million a 52 percent drop on the same period last year, while operating income fell 85 percent to $20.8 million

The crane business backlog at the end of September was down 26 percent on the quarter to $667, compared to over $900 million at the end of June. In spite of the fall, the company says that it has "seen stabilisation in the form of net positive order flow".

"The positive trend started in March, continued to increase over the succeeding six months, and is expected to continue into the fourth quarter, as well as the first quarter of next year."

Nine month year to date revenues were $1.8 billion, a fall of almost 38 percent on the same period last year, while operating income at the nine months stage was down over 70 percent to $127 million.

The group as a whole reported nine month revenues of $2.94 million with a pre-tax loss of $700,000, compared to a profit of $234 for the first nine months of 2008.

Total debt was reduced by around $140 million in the quarter, with a year-to-date debt reduction of $262 million, Manitowoc continues to target a full-year debt reduction of $450 million.

Glen Tellock chief executive of Manitowoc said:: "During the first half of 2009, crane sales still benefited from the very strong backlog on our books prior to the extreme cyclical downturn that developed rapidly in the fourth quarter of 2008".

"It is typical for both the size and the duration of the backlog to diminish as demand wanes since the factories are not operating as close to their capacity. As a result, the percentage of our orders versus revenues has increased from 18 percent in the first quarter to over 50 percent in the third quarter.”

"While improvement in the U.S. and European markets is not expected in the near term, there are pockets of growth in Asia, Latin America, Africa, and the Middle East. Going forward, Manitowoc should benefit from the global restructuring that we have been implementing over the past year, as well as our position in emerging markets that are leading the economic recovery."