Manitowoc second quarter results

Backlog in the crane segment totalled USD901m in Q2 2009, a decrease of 36% from Q1 2009’s backlog of USD1.4bn. However, Manitowoc said overall new orders exceeded the volume and dollar value of cancellations.

As a whole, the Manitowoc company recorded sales down 13.1% in the second quarter from USD1.191bn in Q2 2008 to USD1.035bn. This, it said, was predominantly due to the decline in sales in the cranes segment, and was offset by additional revenues gained from Enodis, which it acquired in October 2008.

“Obviously, crane demand continues to be weak across most of our markets,” said Glen Tellock, Manitowoc’s chairman and CEO. “The exceptions include portions of Asia, Latin America and Africa.

"I am generally pleased with the progress that we are making in managing through these difficult times," said Tellock. "While we expect cyclicality in the crane business, the speed and severity of this downturn have been worse than we have seen in the past. We are adjusting our operations appropriately for the current economic realities in ways that should permanently strengthen the business. We have implemented specific actions that will eliminate approximately USD365m in cost out of our businesses annually, with approximately USD240m of those cost reductions to be realised this year.

"Although market conditions are difficult, we continue to generate positive cash flow and reduce debt. The reductions in our expense levels and working capital are enabling us to make progress toward our debt reduction goals."