Manitowoc orders up, revenue down
By Alex Dahm09 February 2018
For the full year 2017 orders at crane manufacturer Manitowoc were reported as US$1,864.2 million, up 32 % on the previous year. Full-year revenue was down $31.8 million or 2 per cent, to $1,581.3 million from $1,613.1 million. Adjusted EBITDA was $67.4 million. Gross profit was up 11.29 % to $281.9 million from 253.3 million a year earlier. Operating income was shown as $1.1 million, up from a loss of -$153.3 million in 2016.
Barry Pennypacker, Manitowoc Company president and chief executive officer, said, “2017 was a pivotal year for Manitowoc. Despite a two percent decline in revenue versus the prior year, we delivered a 313-basis point improvement in adjusted EBITDA margin, and operating cash flow improvement of over $200 million. Our net debt improved over $55 million versus the prior-year due to prudent cash management. These results clearly demonstrate strong operational improvements in the core business through the continued implementation of the principles of The Manitowoc Way.”
Net sales in the most recent quarter, the last one of 2017, were $481.5 million, up 27 % from $378.2 million in the same period of 2016. This was attributed mainly to increased demand, mostly in the USA and Europe. In addition, “More than 40 % of unit revenue in the fourth-quarter came from new products introduced since becoming a stand-alone crane company,” Manitowoc said.
Commenting on the results of the most recent quarter, the last one of 2017, Pennypacker said, “During the fourth-quarter of 2017, we saw an increase of 78 % year-over-year in orders primarily driven by increasing customer sentiment in the North American market, coupled with continued market share gains in our key areas of focus. Looking ahead, as reflected in our guidance… we expect profitability to continue to increase as we execute our strategic priorities.”
Full year 2018 guidance from the company with brands that include Manitowoc crawler cranes, Grove wheeled mobiles, Potain tower cranes and National boom trucks, is for the adjusted EBITDA to be approximately $96 to $116 million.