The Manitowoc Co. this week reported sales of $1.0 billion for the fourth quarter of 2011, an increase of 24.5 percent compared to sales of $830.9 million in the fourth quarter of 2010. The sales increase was driven by a 39.9-percent increase in Crane segment sales, coupled with a 2.2 percent increase in Foodservice segment sales.
On a GAAP basis, the company reported earnings of $15.3 million, or $0.12 per diluted share, in the fourth quarter versus a net loss of $65.5 million, or $0.50 per diluted share, in the fourth quarter of 2010. Both periods included special items. Excluding special items, the adjusted earnings from continuing operations were $18.5 million, or $0.14 per diluted share, in the fourth quarter of 2011, versus adjusted earnings of $13.4 million, or $0.10 per diluted share, in the fourth quarter of 2010.
For the full-year 2011, sales were $3.7 billion, a 16.2-percent increase from $3.1 billion in 2010. GAAP net loss in 2011 was $10.5 million, or $0.08 per share, versus a GAAP net loss of $79.5 million, or $0.61 per share, in the prior year. Net earnings from continuing operations in 2011 were $50.2 million, or $0.38 per share, versus earnings of $11.3 million, or $0.09 per share, in 2010.
“We finished the year strong, with sales increasing nearly 25 percent year-over-year in the fourth quarter complemented by improving operating results in both of our industry-leading segments,” said Glen Tellock, Manitowoc’s chairman and CEO. “As expected, 2011 was a transitional year for Manitowoc, but our focus on executing against our strategic imperatives coupled with an ongoing commitment to innovation and continuing investments in strategic growth opportunities helped us navigate challenging headwinds.
“We enter 2012 in a solid position to drive continued growth, building on the momentum we experienced in the fourth quarter. While we are optimistic about the year ahead, a challenging operating environment still lingers. The steps we have taken to improve our competitive position over the last several years drive our outlook in 2012 as we endeavor to expand our leadership position and continue to improve our financial strength and flexibility.”
Fourth-quarter 2011 net sales in the Crane segment were $687.6 million, up nearly 40 percent from $491.4 million in the fourth quarter of 2010, driven primarily by continued growth in the Americas region, as well as greater demand in most emerging markets and the Greater Asia-Pacific region. This strong performance also marked the first occasion since the fourth quarter of 2008 that quarterly Crane sales surpassed $685 million.
Crane segment operating earnings for the fourth quarter of 2011 increased to $39.5 million compared to $30.5 million in the same period last year. This resulted in a Crane segment operating margin of 5.7 percent for the fourth quarter of 2011, down 50 basis points from fourth-quarter 2010 margins. The year-over-year comparison was positively impacted by the higher sales volume, but offset by increased commodity costs, certain production inefficiencies, and a negative product sales mix. Crane segment backlog totaled $761 million as of Dec. 31, 2011, which increased 33 percent from $572 million in the prior year. Fourth-quarter 2011 orders of $676 million were 9-percent higher than the fourth quarter of 2010 and marks the highest level of order activity since the third quarter of 2008.
“Given these increased activity levels, we expect continuing growth in 2012 within this business driven by new product introductions, as well as increasing demand in various regions including North America, Latin America, and Greater Asia-Pacific that is partially offset by soft markets in Europe,” Tellock said. “Additionally, our new manufacturing facility in Brazil, which we expect to come on line by mid-year, should position us well to support the broad-based opportunities throughout Latin America in 2012. As a result, Manitowoc will be the first global crane manufacturer to produce rough-terrain cranes in this region of the world.”
For the full-year 2012, Manitowoc expects 10- to 15-percent year-over-year growth in Crane revenue.
The Manitowoc Co., Manitowoc, Wis., 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. It is also a manufacturer of commercial foodservice equipment.
