According to statements by Manitowoc’s director of investor relations Steven Khail last week in The Waynesboro Record Herald, since the Manlift production is a small part of Grove’s production, the suspended operations will have little impact on Grove Worldwide. Production of all-terrain, rough terrain, truck-mounted and industrial cranes by Grove workers at the Shady Grove facility will continue. However, the apparent exit of Grove, one of the pioneers of the aerial work platform industry, will impact that market, which has seen considerable consolidation in recent years.
The revised Manlift division would feature the Toucan vertical masts manufactured in France. Specifically, the restructuring plan includes the following actions:
- Discontinue the scissor-lift and boom-lift product segments, and close the Liftlux facility in Dillingen, Germany.
- Discontinue U.S. manlift production at the Shady Grove, Pa. facility.
- Develop the remaining Toucan vertical mast segment and market its products under the Manlift brand and the Toucan product name in Europe.
- Continue to provide dedicated aftermarket parts and service support for the discontinued product lines through Manitowoc CraneCARE. The restructuring also includes reorganization of the spare parts and product support activities of AWP, which would result in closing the Manlift product support facility in Kronau, Germany and transferring these responsibilities to Manitowoc CraneCARE operations in North America and Europe. This would ensure that its entire installed base of AWP equipment is strongly supported with comprehensive parts and service programs, the company said.
The Liftlux and U.S. Manlift anticipated combined loss from operations of approximately $4.5 million will be reported as a loss from discontinued operations for the year ended 2003..
The company’s guidance for 2003 earnings per share before special items remains at 70 to 75 cents. Special charges will increase from the 50 cents per share in prior guidance to a range of 65 to 70 cents per share.
