The Manitowoc Co. Grows Full-Year 2013 Sales 3.4 Percent despite Weakened Crane Segment

The Manitowoc Co. last week reported full-year sales of $4.0 billion, a 3.4-percent increase from $3.9 billion in 2012. GAAP net income in 2013 was $141.8 million, or $1.05 per share, versus GAAP net income of $101.7 million, or $0.76 per share, in the prior year.

For the fourth quarter of 2013, sales were $1.10 billion, a decrease of 2.1 percent compared to sales of $1.13 billion in the fourth quarter of 2012. The strong performance of the company’s Foodservice segment partially offset the 7.9 percent-decrease in Crane segment sales.

On a GAAP basis, the company reported net earnings of $20.9 million, or $0.15 per diluted share, in the fourth quarter versus net earnings of $34.5 million, or $0.26 per diluted share, in the fourth quarter of 2012.

“The weak macro environment persisted in 2013, and as such, we diligently focused on managing those areas within our control,” said Glen Tellock, Manitowoc’s chairman and CEO. “Margin improvement across the enterprise was driven by our strategic initiatives, including new product introductions, controlling costs, and enhancing efficiencies. As we look ahead into 2014, we are confident in our abilities to significantly improve profitability, even with modest growth. We remain focused on directing resources to those areas that will deliver the highest returns on our investments, which includes continuing to prioritize funding our growth, cost reduction and process improvement initiatives, as well as debt repayment.”

Fourth-quarter 2013 net sales in the Crane segment were $704.8 million, down 7.9 percent from $764.9 million in the fourth quarter of 2012. Fourth-quarter 2012 sales were unusually high due to shipments of $120 million delayed from the prior quarter and which enhanced fourth-quarter 2012 revenue.

Crane segment operating earnings for the fourth quarter of 2013 were $54.8 million, compared to $60.1 million in the same period last year. This resulted in an operating margin of 7.8 percent for the fourth quarter of 2013, nearly matching the 7.9 percent margin in the same period in 2012. Fourth-quarter 2013 earnings were impacted by the lower sales volume, which were partially offset by the successful implementation of ongoing procurement savings and operational efficiencies.

Fourth-quarter 2013 orders of $707 million were 30-percent higher than the fourth quarter of 2012. Crane segment backlog totaled $574 million as of Dec. 31, 2013, a decrease of $182 million from the fourth quarter 2012.

“Sales and order activity were solid in the Crane segment in the fourth quarter,” Tellock said. “Driven by sustained demand across multiple product categories, notably crawler cranes and tower cranes, the strong order intake during the quarter was particularly noteworthy as this was the highest level reached since before the recession.”

For the full year, Crane segment revenue grew 3.3 percent to $2.5 billion, operating earnings increased $48.3 million, or 28.3 percent, while operating margins improved 170 basis points to 8.7 percent for the full year ended 2013.

The Manitowoc Co. is a multi-industry, capital goods manufacturer of crawler cranes, tower cranes, and mobile cranes for the heavy construction industry, as well as commercial foodservice equipment.