The Americas drive Manitowoc growth
By Euan Youdale07 August 2012
Crane segment sales reached US$610.7 million at Manitowoc in the second quarter of 2012, up from $554.8 million in the second quarter of 2011.
The 10.1% sales growth was achieved despite a $32 million impact from currency exchange, said the company, and was mainly driven by continued growth in the Americas and sustained demand in most emerging markets.
Crane segment operating earnings for the second quarter of 2012 stood at $48, up 47.7% compared to $32.5 million in the same period last year. This resulted in an operating margin of 7.9% for the second quarter of 2012, up from 5.9% in the same period in 2011.
The year-on-year increase in margin was due to leverage of the higher sales volume and operational efficiencies that were partially offset by material cost increases, incremental engineering expenses, plus costs associated with the start-up of the new manufacturing facility in Brazil and Enterprise Resource Planning (ERP) system deployments in France, Brazil, and Crane Care, said the company.
Crane segment backlog totalled $944 million as of June 30, 2012, a 13% increase from $839 million in the prior-year quarter. Second quarter 2012 orders of $629 million were 7% higher than the second quarter of 2011. "We maintained solid momentum during the second quarter in our crane segment, experiencing strong order intake, a growing backlog, and further margin expansion. Similar to the previous quarter, the Americas and most emerging markets demonstrated positive momentum, while demand in Europe and China remained challenging," said Glen Tellock, Manitowoc chairman and CEO.
"In addition, we saw varied demand levels across our product categories, with large rough terrain cranes, all terrain cranes, and boom trucks contributing positively to the second quarter performance, while crawlers and tower cranes experienced modest demand. Overall, the level of activity we have experienced in the first half of this year supports our assertion that 2012 will be a year of sustained growth."
Overall The Manitowoc Company group reported sales of $1 billion for the second quarter of 2012, an increase of 5.9% compared to sales of $949.8 million in the second quarter of 2011. This was result was mainly thanks to growth in the crane segment, although there was a slight increase in the foodservice segment's sales, said the manufacturer.