The segment’s strong operating environment is also reflected in its backlog, which totalled $633m, more than double the $289 million on order at September 30, 2004.
Terry Growcock, chairman and ceo of MCG’s parent group, said: “Demand for lifting solutions is increasing in our key industry markets and in most of our served geographies. Federal programs to improve and expand transportation and energy infrastructure in the United States are increasing domestic demand for construction equipment, and international demand is being driven by industrial expansion in both established and emerging markets.”
During the fourth quarter, MCG will begin moving into its new Chinese crane facility, from which it will better serve the domestic Chinese market and growing Asian economies in 2006.
Growcock added: “Adding to our strong performance, it appears the long-anticipated revival of the North American crawler crane market is now taking shape.”
Manitowoc, which, along with MCG, also includes foodservice and marine divisions, reported increases in net sales and earnings for the third quarter.
Net sales increased 23% to $564.9 million, from $460.8m during the third quarter of 2004. Reported earnings per diluted share were $0.55 for the 2005 quarter compared to $0.47 for the 2004 quarter. Excluding costs associated with restructuring and plant consolidation in the 2005 quarter and a charge related to debt extinguishment in the 2004 quarter, earnings per diluted share from continuing operations increased 68 percent to $0.74 for the 2005 period from $0.44 for the comparable 2004 period. In addition, the company generated solid cash from operations in the quarter of $61.3 million.
For the nine months ended September 30, 2005, net sales increased 24 percent to $1.7 billion from $1.3 billion during the 2004 period. Net earnings for the first nine months of 2005 were $47.6 million, or $1.55 per diluted share, an increase of 41 percent from the $33.7 million, or $1.24 per diluted share, achieved during the first nine months of 2004. Excluding special items, earnings from continuing operations for the first nine months of 2005 were $59.2 million, or $1.93 per diluted share, compared with $28.9 million, or $1.06 per diluted share last year. A reconciliation of GAAP earnings from continuing operations to earnings from continuing operations excluding special items for the third quarter and first nine months is included later in this release.