The Manitowoc Company Inc. has reported net sales of $433.7m for the second quarter of 2003, up 32% from $328.3m during the same period in 2002. But net earnings were down significantly, to just $1.3m, compared with $20.1m in the second quarter of 2002. Special charges totalled $10.8m.
Sales growth came mainly as a result of the Grove acquisition. Excluding Grove, total company sales were down 14%.
There was a drop in operating profit from both the Crane and Marine businesses, and an increase in interest expense. The company’s Foodservice division saw its operating profit rise slightly despite lower sales.
Second-quarter special charges primarily included a restructuring charge of $4.8m, principally related to the closire of the National Crane factory and other rationalisation within the Crane segment, and a $4.9m goodwill impairment charge. The company warned that it would also record additional charges of approximately $5 to $10m in the second half of the year as these activities are completed.
Net sales in the Crane segment were $266.8m for the quarter, an increase of 88% from $142.1m in 2002.
Grove, including National, contributed about $150m in sales. Five years ago Grove made $225m in sales for the April to June quarter.
Excluding results from the Grove acquisition, net Crane segment sales were down 19%. Operating earnings were $8.7m compared with $20.8m one year ago. As of June 30, total crane backlog was $165m.
‘Our Crane segment results continue to reflect weak demand in the construction industry, as well as pricing pressures as competitors work to retain market share,’ said Manitowoc Company CEO Terry Growcock. ‘Despite the difficult market conditions, we have gained global market share in five of our seven crane product categories.
‘With the previously announced facility closures in North America and Europe well under way, the integration of our Crane acquisitions will soon be complete. Our strategic focus for the Crane segment is to protect our market share through continued investment in new products and product support, grow share globally by leveraging the strengths our acquisitions have provided us, and continually improve our cost structure. We are making tough decisions and taking decisive measures to manage through this economic downturn. We are confident that our efforts will yield excellent long-term results.’