The Manitowoc Co. last week reported results for the quarter ended Dec. 31. As a result, the company's fiscal 2006 results set records for sales, earnings per share and cash generation. For the most-recent quarter, net sales increased 32 percent to $775.2 million from $589.3 million during the fourth quarter of 2005. Reported earnings per diluted share were 69 cents for the fourth quarter of 2006 compared to 30 cents for the fourth quarter of 2005.
Earnings per diluted share from continuing operations before special items for the fourth quarter of 2006 increased 188 percent to 69 cents, up from 24 cents for the fourth quarter of 2005.
For the 12 months ended Dec. 31, the company's net sales totaled $2.9 billion, an increase of more than 30 percent from fiscal 2005. Earnings per share from continuing operations before special items totaled $2.81 for the 2006 fiscal year, an increase of 134 percent from $1.20 in the prior year, and 2006 full-year cash from operations totaled $294.1 million, up 176 percent from $106.7 million in 2005. All three metrics set new records and greatly exceeded prior records from the company's 104-year history. Reported GAAP earnings per diluted share were $2.65 for the full year ended Dec. 31, compared to reported GAAP earnings per diluted share of $1.07 for the same period in 2005.
"Our financial and shareholder performance in 2006 is the direct result of our long-held strategy to build a global leadership position in the lifting industry," said Terry Growcock, Manitowoc's chairman and CEO. "We believed then that the lifting industry would experience a strong increase in activity and product demand, and today's market environment validates that belief. Manitowoc's broad product line and global footprint have positioned the company very well to continue to enjoy the benefits of strong market demand."
Fourth-quarter 2006 net sales in the crane segment increased 38 percent to $604.6 million, from $438.9 million in the fourth quarter of 2005. The strength of the crane segment's end markets is reflected in its backlog, which totaled $1.5 billion at year-end, an increase of 10 percent from Sept. 30, and up 77 percent from Dec. 31, 2005.
"The crane segment continues to drive outstanding financial performance through its global positioning and strong product line," Growcock said. "Our operating margin of 12.8 percent for the quarter and 12.6 percent for the full year reflects the operating leverage inherent in a world-class manufacturing organization."
The crane segment will serve as the company's primary growth driver in 2007 as the global construction industry continues to require best-in-class lifting equipment, the company said. The company expects that this key business will experience revenue growth of more than 20 percent in 2007, driven by its global manufacturing base that provides faster delivery times and products tailored to regional requirements.
"Based on our current outlook, we are tightening our 2007 earnings guidance to a new range of $3.85 to $4.00 per share, excluding special items," added Growcock. "The new range represents an increase of 37 percent to 42 percent from our record 2006 results. All other elements, as communicated during our November 28th investor day, remain unchanged."
Headquartered in Manitowoc, Wis., The Manitowoc Co. is a provider of lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes and boom trucks.