Manitowoc continues double digit rise
By Laura Hatton01 February 2013
The Manitowoc Company has released its financial results for 2012. Fourth-quarter 2012 net sales in Manitowoc’s crane segment were US$767.2 million, up 11.6 % from $687.6 million in the fourth quarter of 2011. The increase in sales is continuing to be driven by strong sales activity in the Americas region and higher demand in emerging markets, Manitowoc said.
Crane segment operating earnings for the fourth quarter of 2012 were $56.3 million, compared to $38.8 million in the same period last year. This resulted in an operating margin of 7.3 % for the fourth quarter of 2012, up from 5.6 % in the same period in 2011. Fourth-quarter 2012 earnings were due to higher sales volume and operational efficiencies, Manitowoc said.
Order backlog in cranes was $756 million at 31 December 2012, down slightly on the $761 million of the prior-year quarter.
Fourth quarter 2012 orders of $544 million were 19 percent lower than the fourth quarter of 2011. Second half 2012 orders were essentially flat in comparison with second half of 2011, Manitowoc said.
“During the quarter we saw continued strength in the Americas region, coupled with positive performance in several emerging markets, including Brazil, Greater Asia/Pacific, and Africa. Our initiatives to drive meaningful margin expansion and take advantage of expected growth trends globally continue to take shape. We expect operational excellence to be a primary driver for Cranes in 2013 as our sustained focus on efficiency will not only enhance our competitive position, but also drive long-term profitability,” said Glen Tellock, Manitowoc chairman and chief executive officer.
For the whole Manitowoc Company, for the fourth quarter of 2012 sales were US$1.1 billion, an increase of 10.0 percent compared to sales of US$1.0 billion in the fourth quarter of 2011. The main driver being an 11.6 % increase in crane segment sales.
“We finished 2012 on a strong note. The steadfast execution against our strategic initiatives drove another quarter of positive sales growth and margin improvement, while our full-year results matched our revenue and earnings expectations. These results also demonstrated our ability to effectively manage our global businesses despite macroeconomic challenges,” Tellock said.
“Despite this prolonged and often volatile operating environment, we continue to believe we have the right strategy to continue expanding profitability across the entire Manitowoc enterprise as we look to 2013. In addition, we will continue to invest prudently in our strategies to leverage and enhance our market leadership positions,” Tellock continued.