Manitowoc sales dip
US crane manufacturer Manitowoc has reported a dip in first quarter sales, but a smaller loss for the first quarter.
Total revenues were $329.2 million, a fall of just over 21 percent, while order intake declined 15 percent to $375 million with the value of the order intake impacted by a $5.1 million exchange rates effect. The backlog/order book at the end March was $520.9 million. The company reported a pre-tax loss of $5.9 million down from a loss of $23.4 million last year, both results including write offs or debt and costs for refinancing, but last year included a $25 million one off fee.
Chief executive Barry Pennypacker said: “Our first quarter adjusted EBITDA of $16.3 million was in line with our planned expectations, despite the unprecedented conditions created by the Covid-19 pandemic. This was made possible by the extraordinary commitment of our talented and resolute team. During this pandemic, our primary goal remains unchanged, ensuring the safety, health and wellbeing of all our employees, their families, our suppliers and customers. Our dedicated teams are working hard to deliver cranes and provide essential parts and services, and I could not be prouder of their commitment to our high standards while balancing personal challenges. We are grateful for the efforts our healthcare providers and first responders are making, and we are proud to support these front line professionals by committing $100,000 from The Manitowoc Company Foundation in the fight against Covid-19.”
“While we have remained operational in the U.S., our major facilities in Europe began closing in mid March which delayed our ability to ship products. It is unclear how events unfold from here, however with ample liquidity and no significant debt maturities until 2026 we are well positioned to weather circumstances like this crisis. We continue to analyse all of our costs and take appropriate actions. We have substantially cut discretionary spending, while eliminating salary increases across the enterprise, including executives and board members. Furloughs, as well as temporary plant shutdowns, are also being planned based upon our order rates. In order to proactively manage our liquidity, we are significantly cutting our capital spending this year as well as suspending our share buyback program. Manitowoc entered this uncertain period as a more agile company and market leader with a strong balance sheet, and I am confident that we will emerge stronger when end markets successfully recover.”
As with other companies Manitowoc has withdrawn its forecasts and outlook for 2020, due to the current crisis.
The first quarter fall in revenues compares with most other companies that have reported so far, while order intake and backlog look to have held up quite well. The company’s European plants will gradually be coming back on stream now which might help the second quarter a little, but with supply chains still catching up no one expects the next two quarters to be anything but dismal in terms of financial results.
Manitowoc is fairly well placed however and may well see a half decent fourth quarter - relatively speaking - and face better prospects for 2021.