The company’s fourth quarter 2013 net sales in its crane segment were $704.8m, down 7.9% from $764.9m in 2012. Explaining the dip Manitowoc said that the fourth quarter 2012 sales were unusually high due to shipments of $120m delayed from the prior quarter and which enhanced fourth-quarter 2012 revenue.
Crane segment operating earnings for the fourth quarter of 2013 weren’t as badly down: the manufacturer registered $54.8m operating earnings in fourth quarter 2013, compared to $60.1m for the same period in 2012. This resulted in an operating margin of 7.8%, close to the 7.9% margin for the same period in 2012. Manitowoc said that the fourth quarter 2013 earnings had been impacted by the lower sales volume, but were partially offset by the successful implementation of ongoing procurement savings and operational efficiencies.
Orders of $707m were recorded by the manufacturer in the fourth quarter, 30% higher than in 2012. Backlog for the cranes segment totalled $574m as of 31st of December 2013, a decrease of $182m from the fourth quarter 2012.
For the full year in 2013, Manitowoc’s crane segment revenue grew 3.3% to $2.5bn, with operating earnings increasing 28.3% percent. Operating margins also improved 170 basis points to 8.7%.
The Wisconsin-based manufacturer improved its cash flow in the fourth quarter with operating activities of continuing operations providing a total of $273m up from $236.4m in the previous year for all segments of the business. This was due to cash from profitability improvement and a reduction in working capital. The company’s capital expenditures totalled $38m, whilst net debt reduction came to $247.1 million. Manitowoc announced that the company had repaid approximately $257.9m of its debt. This, it said, was well in excess of the targeted level of $200m.
In 2014 Manitowoc expects crane revenue to achieve modest top-line growth, with operating margins in the high single digit percentage. Capital expenditures are predicted to be approximately $90m, with depreciation and amortization at approximately $120m. Interest expense the manufacturer expects to come to approximately $100 million.
Glen Tellock, Manitowoc’s chairman and chief executive officer said: "Sales and order activity were solid in the Crane segment in the fourth quarter. Driven by sustained demand across multiple product categories, notably crawler cranes and tower cranes, the strong order intake during the quarter was particularly noteworthy as this was the highest level reached since before the recession. Furthermore, we are excited to showcase our innovative new designs in the upcoming year, including an array of technologically advanced products that will premiere at ConExpo 2014."
