Sales on the up at Manitowoc
By Euan Youdale01 February 2011
Manitowoc's crane segment fourth quarter 2010 results show hopeful signs with sales increases on previous periods.
Net sales for Q4 2010 were US$ 491.4 million, up 2.3% from $480.3 million in the third quarter 2010, and up 12% on third-quarter 2009 sales of $438.8 million..
Crane segment operating earnings for the fourth quarter of 2010 increased to $30.4 million from $18.3 million in the same period last year and $16.1 million in the third quarter of 2010. This resulted in a crane segment operating margin of 6.2% for the fourth quarter of 2010, up from 3.8% in the same period in 2009, and 3.7% in the third quarter of 2010.
Crane segment backlog was $572 million at 31 December 2010, an increase of 27.7% from the $448 million backlog at 30 September 2010. The increase was due to a solid increase in demand, across all end markets and most product lines, throughout the fourth quarter, said the company.
"Exceptionally strong order rates toward the end of the fourth quarter drove year-over-year and sequential sales growth for our crane segment. North America and Europe are beginning to show signs of modest recovery, and we're encouraged by new orders from dealers that are beginning to replenish their inventories," said Glen Tellock, Manitowoc chairman and chief executive officer.
"Additionally, strong operating margins for the quarter resulted in full-year margins well above those witnessed in previous trough years. While we were encouraged by the increasing demand for our products toward the end of 2010, we do expect potential volatility in orders during 2011 as end markets regain their footing," added Tellock.
Group results from the Manitowoc Company, Inc. show fourth quarter sales of $830.9 million, up 4.1% from $798.1 million in the fourth quarter of 2009. The sales increase was due primarily to a 6.8% increase in Foodservice segment sales.
For the full-year 2010, however, sales stood at $3.1 billion, a 13.2% decline from $3.6 billion in 2009. The net loss in 2010 was $71.4 million, or $0.55 per share, versus a loss of $704.2 million, or $5.41 per share, in the prior year.
"The unrelenting focus on our initiatives during the downturn has left Manitowoc much better positioned to capitalise on new opportunities and further extend our leadership position amid recovering end markets. In the face of continuing market uncertainty, we set aggressive targets for the company in 2010, and through the hard work and tireless execution by our people, we achieved nearly all of our goals," said Tellock.