Sales up 5% at Manitowoc

By Alex Dahm09 May 2016

Potain MCR 160 Manitowoc

Potain MCR 160 Manitowoc

In its first quarter as a standalone crane business since the separation in January, crane manufacturer Manitowoc Company reported sales of US$427.4 million for the first quarter of 2016. It was up five percent on the $406.7 million for same period of 2015.

The increase was largely attributed to strength in the tower crane market and business for the Potain brand. Operating earnings were $9.5 million, as opposed to a loss of $7.3 million a year earlier. The 2.2 % operating margin for the quarter compares favourably with the negative figure of -1.8 % for Q1 2015.

Commenting on the results, Barry Pennypacker, Manitowoc president and chief executive officer, said, “We made great strides in the first quarter transitioning to a standalone crane business. We’ve begun to establish a new culture based on The Manitowoc Way, focused on driving innovation and velocity throughout all of our business processes. In the first quarter we experienced continued momentum in our tower business, fuelled by residential and non-residential construction. As anticipated, demand for mobiles remains soft. Our full-year outlook remains unchanged.”

For the first quarter of 2016 the company reported a net loss of $204.0 million versus a net loss of $8.4 million a year earlier. “First quarter 2016 earnings were impacted by costs associated with early extinguishment of debt, restructuring and one-time tax items,” the company said.

Orders placed in the first quarter were worth $417 million, down $7 million on the $424 million of the previous quarter to the end of 2015. Restructuring expense in the first quarter was $4 million, mainly for workforce reduction in the USA. Total savings from the plan, however, are forecast to be $20 million by the end of the year, with another $18 million expected from other restructuring activities.

In outlook for 2016 Manitowoc forecasts flat revenue and an operating margin around 4 %.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, World Crane Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Long Reads
Post-pandemic demand lengthens delivery times for construction equipment
Government stimulus measures following the global pandemic have led to a surge in demand for construction equipment
Technology paves the way for driving 3D development
What is 3D modelling and what is it used for? Discover more at SC&RA Workshop
PREVIEW: SC&RA Crane & Rigging Workshop
The 2021 Crane & Rigging Workshop will be held September 14-16 at the Hyatt Regency Chicago, USA
CONNECT WITH THE TEAM
Alex Dahm Editor, International Cranes and Specialized Transport Tel: +44(0) 1892 786 206 E-mail: alex.dahm@khl.com
Mike Posener Sales Manager Tel: +353 860 431 219 E-mail: mike.posener@khl.com
CONNECT WITH SOCIAL MEDIA