The Manitowoc Co. last week reported its financial results for the quarter ended Sept. 30, as continued strong global demand for the company's lifting solutions drove outstanding performance in sales, profitability, and earnings per share. For the quarter, net sales totaled $1.0 billion, an increase of 29 percent from the third quarter of 2006. Reported earnings per diluted share were $0.59 for the third quarter of 2007 compared to $0.40 for the third quarter of 2006.
“Strong global demand for lifting equipment continues to support the company's outstanding performance, and we believe that the fundamental drivers of this demand will remain intact for an extended period,” said Glen Tellock, Manitowoc's president and CEO. “The traditional lifting markets of North America and Western Europe continue to perform as expected in this current cycle. It is the strength and depth of demand in the emerging markets that gives us the confidence to make meaningful additions to our crane production capacity on a global basis. Customer feedback, coupled with our own market research, shows that the demand for lift solutions in emerging markets will continue to outpace current industry production capacity for several years.”
Reflecting this long-term outlook, Manitowoc Crane Group has recently launched several production capacity expansion initiatives:
· A 57,000-square foot expansion of the company's crawler crane manufacturing facility in Manitowoc, Wis.
· Expansion and process enhancements at the company's Port Washington, Wis., specialty machining facility to enhance crawler crane capacity
· Entrance into the India market with the acquisition of Shirke Construction Equipment, a long-time Potain tower crane supplier
· Better access to the Eastern European markets through development of a manufacturing facility in Slovakia.
Third-quarter 2007 net sales in the Crane segment increased 39 percent to $812.3 million, the group's 26th consecutive quarter of improved year-over-year results. Operating earnings for the third quarter of 2007 increased 48 percent to $112.3 million, from $76.1 million in the same period last year. Backlog totaled $2.7 billion at Sept. 30, an increase of 28 percent from June 30, and nearly double the level achieved at Sept. 30, 2006.
“Demand for our full line of lifting solutions continues to be strong in all regions and for nearly all product lines,” said Tellock. “Our view of the industry is that demand will remain strong through the end of the decade, with the potential for additional infrastructure and industrial projects in emerging markets to push that window of demand out even farther.
The company increased its 2007 earnings guidance to $2.45 to $2.50 per share, excluding special items.
Based in Manitowoc, Wis., The Manitowoc Co. manufactures lattice-boom cranes, tower cranes, mobile telescopic cranes and boom trucks.