The Manitowoc Co. last week reported sales of $1.04 billion for the second quarter of 2009, down 13.1 percent from $1.19 billion in the second quarter of 2008. The sales decrease was due primarily to a 39-percent decline in crane sales, partially offset by the additional revenues due to the acquisition of Enodis plc in October 2008.
On a GAAP basis, the company reported a net loss of $18.1 million, or $0.14 per diluted share for the quarter, versus net income of $133.9 million, or $1.01 per diluted share in the second quarter of 2008. The net loss included a number of unusual items totaling approximately $43 million on an after-tax basis. These items included a $23 million loss related to the sale of the Enodis ice business and $14 million of restructuring charges.
Excluding unusual items, adjusted earnings from continuing operations were $24.8 million, or $0.19 per share, versus similarly adjusted earnings of $121.2 million, or $0.92 per share in the second quarter of 2008.
“I am generally pleased with the progress that we are making in managing through these difficult times,” said Glen Tellock, Manitowoc’s chairman and CEO. “While we expect cyclicality in the crane business, the speed and severity of this downturn have been worse than we have seen in the past. We are adjusting our operations appropriately for the current economic realities in ways that should permanently strengthen the business. We have implemented specific actions that will eliminate approximately $365 million in cost out of our businesses annually, with approximately $240 million of those cost reductions to be realized this year.
“Although market conditions are difficult, we continue to generate positive cash flow and reduce debt. The reductions in our expense levels and working capital are enabling us to make progress toward our debt reduction goals.”
Second-quarter 2009 net sales in the Crane segment were $652.3 million, down 39 percent from $1.06 billion in the second quarter of the prior year. Crane segment operating earnings for the second quarter of 2009 decreased 70 percent to $49.5 million from $167.0 million in the same period last year. Excluding the negative impact of foreign currency on the Crane segment results, second-quarter sales and operating earnings were down 31 percent and 62 percent, respectively.
“Obviously, crane demand continues to be weak across most of our markets,” said Tellock. “The exceptions include portions of Asia, Latin America, and Africa. We are also encouraged that overall new orders are continuing to exceed cancellations in terms of both unit and dollar volumes.”
In addition, the company’s EBITDA in the second quarter ended June 30, was $108 million.
Headquartered in Manitowoc, Wis., The Manitowoc Co. is a multi-industry, capital goods manufacturer with more than 100 manufacturing and service facilities in 27 countries. It is one of the world’s largest providers of lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks.