Manitowoc results show strong activity in Americas2 February 2012
Manitowoc reported fourth quarter 2011 sales of $1.0bn across all its segments. This figure was up 24.5% in the quarter from 2010, thanks to a buoyant performance by its crane segment in the Americas region.
The fourth quarter brought a 39.9% increase in net crane segment sales totaling $687.6m in the quarter and $2164.6m in the year.
Manitowoc said, “This strong performance also marked the first occasion since the fourth quarter of 2008 that quarterly crane sales surpassed $68m.”
Seen from the year-on-year perspective this sales growth also represents the company’s highest since 2007, before the global financial crisis.
Crane sales were driven mostly by steady growth in the Americas region, as well as increased demand in the Greater Asia-Pacific region.
Eric Etchart, president of Manitowoc Crane, said the crane segment had performed well in these markets.
European and Chinese crane markets were slower, he said. “We also continued to experience weakness in much of Europe and slowing growth in China.”
Energy and infrastructure projects are expected to be a steady source of revenue in years to come. “As we have seen over the past few quarters, demand is being driven by energy and infrastructure projects, which should continue for the foreseeable future,” said Etchart.
Expanding customer care in Latin America, the company in 2012 will recommence a service initiative in France and Brazil, the initiative having commenced before the recession and paused. In addition it will spend more on crane care services worldwide.
Chairman, chief executive officer and president of Manitowoc Glen Tellock said it would in mid-2012 become the first company to produce rough terrains in Brazil at its new 225,000sq ft manufacturing facility.
“Consistent with our first mover advantage with tower cranes in China and India, Manitowoc will be the first global crane manufacturer to produce rough terrain cranes in this part of the world,” said Tellock.
Chief financial officer and senior vice president Carl Laurino explained supply chain constraints upon the crane segment with regards to emerging markets.
“As we announced in December, our quality assurance program identified an issue with a specific hydraulic component which, in turn, delayed the shipment of some crane products into the first quarter of 2012.”
Manitowoc noted revisions pending in the 2011 statement because of an error made in its 2008 results related to purchase accounting for the Enodis Acquisition. $1bn of debt for this acquisition has since been repaid.