Sales and backlog up at Manitowoc
By Alex Dahm10 May 2011
Manitowoc crane segment sales for the first quarter of 2011 were up 7% to US$ 393 million from $367 million in Q1 2010.
The increase was primarily attributed to growth in the Americas region and the Crane Care business. First-quarter revenue was affected by delivery disruptions, primarily due to Tier IV engine challenges, now resolved, the company said. Operating earnings for the quarter were up to $12.5 million from $4.5 million, giving an operating margin of 3.2% for the first quarter of 2011, up from 1.2 percent in the same period in 2010.
Order backlog at the end of March was up 40% to $800 million from the $572 million in the previous quarter, ending 31 December 2010.
"First-quarter performance for our Crane segment reflected a continuation of the strong order rates from the fourth quarter. Orders were particularly strong in the Americas, which benefited from a very successful ConExpo show in March. While economic conditions in parts of Europe continue to be challenging, the first quarter performance reaffirms our view that 2010 was the trough year for this segment and provides us with greater confidence in our full-year 2011 outlook," said Glen Tellock, Manitowoc chairman and chief executive officer.
"We continue to believe that 2011 will be a transition year, with uneven demand levels and increasing commodity costs creating certain challenges. However, we're pleased with our current position and believe we are in an excellent position to drive year-over-year growth in 2011 and beyond," Tellock continued.
Looking ahead, for the full-year 2011, the company forecasts a low double-digit year-over-year percentage growth in crane segment revenue.
For the Manitowoc Company (Cranes and Foodservice segments) sales were US$ 732 million, up 7% from the $684 million for the first quarter of 2010. Sales in the foodservice segment were up 6.9%. A loss overall was reported, however, of $52.4 million in Q1 2011, around double the $23.2 million loss in the same period a year earlier. Both periods, however, included special items. Without those the adjusted net loss from continuing operations was $13.5 million against $12.9 million in the first quarter of 2010.
There is a debt reduction target of $200 million for 2011.