Revenue falls at Manitowoc despite rise in orders

Global crane giant reports operating income back in the black for 2017 as it issues positive guidance for this year

Global crane giant Manitowoc has reported an increase in orders for 2017 despite a fall in revenues when compared to the previous year.

The company said orders for the full year 2017 stood at $1.8bn, up 32 % on the previous year, while revenues for the same period were $1.5bn, a 2% or $31.8m decline from the $1.6bn recorded in 2016. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was $67.4m. Gross profit was up 11.29 % to $281.9m from $253.3m a year earlier while operating income was back in the black at $1.1m from $153.3m in the red in 2016.

Barry Pennypacker, president and CEO of Manitowoc, said: “2017 was a pivotal year for Manitowoc. Despite a two 2% decline in revenue versus the prior year, we delivered a 313-basis point improvement in adjusted EBITDA margin, and operating cash flow improvement of over $200m. Our net debt improved over $55m versus the prior-year due to prudent cash management. These results clearly demonstrate strong operational improvements in the core business through the continued implementation of the principles of The Manitowoc Way.”

Net sales in the fourth quarter on 2017 were $481.5m, up 27% year-on-year from $378.2m. Manitowoc attributed this mainly to increased demand in the USA and Europe. “More than 40% of unit revenue in the fourth quarter came from new products introduced since becoming a stand-alone crane company,” Manitowoc said.

Commenting on the Q4 2107 results, Pennypacker said: “During the fourth-quarter of 2017, we saw an increase of 78% year-on-year in orders, primarily driven by increasing customer sentiment in the North American market, coupled with continued market share gains in our key areas of focus. Looking ahead, as reflected in our guidance, we expect profitability to continue to increase as we execute our strategic priorities.”

Full year 2018 guidance from the company with brands that include Manitowoc crawler cranes, Grove wheeled mobiles, Potain tower cranes and National boom trucks, is for the adjusted EBITDA to be approximately $96-116m.


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