Manitowoc Cranes up 3.3% in 2013
By Alex Dahm31 January 2014
For the full year 2013 Manitowoc Crane segment revenue was up 3.3 %, to US$2.5 billion on the $2.4 billion figure for 2012. Operating earnings increased $48.3 million, or 28.3 % and the operating margin was up 170 basis points to 8.7 % for 2013, the USA-based crane manufacturer reported.
In the most recent quarter, however, while orders were way up, crane sales were down. Fourth-quarter 2013 orders, at $707 million, were 30.0 % higher than the fourth quarter of 2012. Order backlog for cranes was $574 million on 31 December 2013, a decrease of $182 million from the same point in 2012.
Fourth-quarter 2013 net sales were $704.8 million, down 7.9 % from $764.9 million in the fourth quarter of 2012. Sales in the period a year earlier were unusually high due to shipments worth $120 million delayed from the prior quarter which were included in the fourth-quarter 2012 revenue, the manufacturer said.
Glen Tellock, Manitowoc 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.”
In 2013 around $258 million of debt was repaid, well in excess of the targeted level of $200 million, the company said.
“As we look ahead into 2014, we are confident in our abilities to significantly improve profitability, even with modest growth. We remain focused on directing resources to those areas that will deliver the highest returns on our investments, which includes continuing to prioritise funding our growth, cost reduction and process improvement initiatives, as well as debt repayment,” said Tellock.
Looking ahead, in 2014 Manitowoc forecasts crane revenue to show modest top-line growth and the operating margin to be a high single-digit percentage.