Sales up on previous quarter at Manitowoc
10 August 2016
Second quarter sales at crane maker Manitowoc were US$ 457.7 million, up 7 % on the $427.4 million in the first quarter of 2016.
Tower crane sales, mainly in Western Europe, and the introduction of new models helped boost the figures. The sales figure was down, however, by 4 % on the $477.7 million posted for the same period a year earlier.
A net loss of $4.9 million was reported in the second-quarter 2016 against a net income of $23.3 million in the second quarter a year earlier.
Commenting on the results, Barry Pennypacker, Manitowoc Company president and chief executive officer, said, “During the second quarter our sales were further impacted by a challenging market environment on a number of levels, particularly in mobile cranes in the Americas. This weakness was in part offset by strength in tower cranes.
"While the market conditions are beyond our control, we continue to execute our strategic initiatives by focusing on quality and reliability in all of our products, velocity and innovation, and aligning our cost structure to meet current and future demand levels. Our efforts are paying off. By focusing on items within our control, we tripled our adjusted operating income on flat sales during the first half of the year, underscoring the success of our efforts to drive lean operating principles using The Manitowoc Way.”
Pennypacker continued, “As we approach the back half of the year, we expect to see market challenges continue and a similar dynamic in sales with continued strength in tower cranes more than offset by continued weakness in mobile cranes. In spite of the positive energy we experienced at Bauma this year, it is clear that our customers remain cautious around spending given the ongoing global macro-economic uncertainty.”
As a result of the above the company has lowered its full year 2016 sales and operating margin guidance. For the full year 2016 Manitowoc forecasts a decline in revenue by 10 to 12 % and an operating income margins between about 1 and 2 %.