Down in Q2 at Manitowoc

Manitowoc’s crane segment sales in the second quarter of 2014 were down 6.4 % on the same period a year earlier.

Net sales were US$ 606.1 million compared with $647.4 million in the second quarter of 2013. “The decline in sales is due to volume decreases that were most pronounced in the boom truck and rough-terrain product categories,” the US-based global crane manufacturer said.

Crane segment operating earnings for the second quarter of 2014 were $54.4 million, down from $70.0 million in the same period of 2013. The operating margin was 9.0 % versus 10.8 % for the second quarter of 2013. “Second quarter 2014 margins were affected by lower sales volume that was only partially offset by ongoing operational efficiencies,” the manufacturer said.

Order backlog in the crane segment was $728 million at 30 June 2014, down $114 million, or 14 %, from the first quarter 2014. Second-quarter 2014 orders, at $491 million, were 19 % lower than the second quarter of 2013. For the first six months of 2014, however, orders were 6 % higher than the first half of 2013.

“During the second quarter, our Crane segment orders were impacted by prolonged economic pressures from the North American boom truck and rough terrain crane markets, limited activity in Latin America and the Greater Asia/Pacific region, plus ongoing project delays in Russia. Our initiatives around Lean, quality, procurement, and productivity improvements partially offset the negative impact of lower absorption and volume. Looking ahead, there is significant room for improvement, and we remain confident with our strategies to realise the tangible market opportunities that are developing,” said Glen Tellock, Manitowoc chairman and chief executive officer.

For the full year 2014 Manitowoc said it now expects crane revenue to be flat or slightly down and for crane operating margins to be a high single-digit percentage.