The Manitowoc Company Inc. has reported its second-quarter 2017 financials. Net sales for the quarter were $394.6 million, versus $457.7 million in the comparable period in 2016. The company noted the majority of the year-over-year decline was attributed to fewer crawler crane shipments in the Americas and fewer rough-terrain crane shipments primarily in the Americas and the Middle East, mainly due to continued weakness in oil and gas market demand.
Manitowoc crane orders were up 9% to $379.5 million compared to the same period in 2016. This included the initial production order related to the U.S. Army contract. Backlog totaled $491.2 million as of June 30, 2017, which is up 25% from the second-quarter 2016 ending backlog of $393.5 million.
The company also reported net income from continuing operations of $0.7 million in the second-quarter 2017, versus a net loss from continuing operations of $(5.0) million in the second-quarter 2016.
“We are very pleased with our second-quarter performance as we made considerable progress in consolidating our manufacturing footprint and reducing the cost of our organizational structure,” said Barry Pennypacker, president and CEO. He noted that relocation of crawler crane production from Manitowoc, Wis., to Shady Grove, Pa., is now complete. “We delivered $0.05 of adjusted EPS and our adjusted EBITDA was flat year-over-year, despite a $63 million decline in revenue,” he added.
In the second quarter, Pennypacker said Manitowoc crane order improvements were found in most product categories, except lattice boom crawler cranes. “We have experienced pockets of improved demand in specific markets like the Permian and Eagle Ford basins in North America,” he said. “European markets continue to experience moderate growth, mainly in residential and non-residential construction markets, partly offset by continued weakness in the Middle East.”
Manitowoc also has improved its full year 2017 guidance.
- Revenue – down approximately 5-7% year-over-year;
- Adjusted EBITDA – approximately $59 to $69 million;
- Depreciation – approximately $40 million;
- Capital expenditures – approximately $30 million; and
- Income tax expense – approximately $7 to $10 million.
In other Manitowoc Company news, Larry Weyers has put in his notice to leave the company on Aug. 31, 2017. He was with Manitowoc for more than 20 years and currently serves as executive vice president, tower cranes. “The Board and I thank Larry for his strong leadership over the many years with Manitowoc,” Pennypacker said. “With Larry’s departure, Aaron Ravenscroft will become our new executive vice president of cranes and will be based out of our Dardilly, France, facility.” Ravenscroft currently serves as the company’s executive vice president, mobile cranes.