During Q1 2010, net sales in the crane segment were $366.8m, down 45.5% from $672.9m in the first quarter of 2009 (Q1 2009). Crane sales were also 23.6% lower than in the fourth quarter of 2009, when sales totalled $480.2m.
Crane segment operating earnings for Q1 2010 decreased to $4.5m from $56.5m year-on-year. Operating earnings were down $13.8m from the fourth quarter of 2009, due primarily to lower sales volumes, Manitowoc said.
However, crane segment backlog totalled $613m as of 31 March, 2010, an increase of 7% from the $573m backlog at 31 December, 2009.
“While the first quarter results reflect the difficult operating conditions we are facing, we reported our first sequential increase in quarterly backlog since June 2008,” said Glen Tellock, Manitowoc chairman and CEO.
“Consistent with last quarter, we are seeing some bright spots in emerging markets such as Asia, Latin America and the Middle East, which are being offset by continued weakness in North America and Western Europe as expected.
“Our strategy has not changed; we continue to focus on positioning this business for growth as we emerge from this downturn. We are also taking advantage of our position in emerging markets globally.
“We have maintained our efforts to strengthen our entire organisation through operational efficiencies and cost management, while investing in areas that will drive the highest return over the long-term such as innovation and aftermarket support.”
The poor sales performance of the crane segment was the main contributing factor to Manitowoc recording an overall sales decline of $721.9m during Q1 2010, down 29.7% from $1bn in Q1 2009.
Foodservice segment first quarter sales were relatively flat year-on-year, $355.1m in 2010 versus $354.7m in 2009, and against $358.5m in the fourth quarter of 2009.
In addition, the acquisition of Enodis continued to improve the foodservice segment’s margins, both year-on-year and sequentially.
“We saw pockets of strengthening demand in emerging markets, and signs that point toward further stabilisation and gradual improvement in the second half of 2010,” added Tellock.
“As expected, we are beginning to see increasing benefits from the operational efficiency, process improvements and cost reduction initiatives we implemented during 2009.”
