Crane Segment Leads Sales, Earnings for Manitowoc
February 5, 2008 • The Manitowoc Company, Manitowoc, Wis., announces records for net sales and earnings per share for the quarter that ended December 31, 2007. The company attributes its success to robust global construction activity that drives demand for its cranes.
“Manitowoc Crane Group continues to serve as our primary growth driver,” said Glen Tellock, Manitowoc's president and chief executive officer. The global network of manufacturing and service facilities allows Manitowoc to be a preferred lifting equipment provider in established and emerging markets, he said, and much of its planned 2008 capital expenditures will enable Manitowoc to meet strong demand and delivery schedules. “That combination of global reach and responsiveness has been a key factor in our recent performance, and we will make the necessary investments to maintain our leadership position,” Tellock added.
Fourth-quarter 2007 net sales in the crane segment increased 56 percent to $945.5 million, while the company's net sales for the quarter totaled $1.1 billion • an increase of 44 percent from the fourth quarter of 2006. The crane segment's operating earnings for the fourth quarter of 2007 increased 83 percent to $141.7 million, from $77.6 million in the same period last year. Backlog totaled $2.9 billion at December 31, 2007, an increase of 8 percent from September 30, 2007 and up 88 percent from the level achieved at December 31, 2006.
“Our discussions with customers coupled with independent market research all indicate that demand for lift solutions will continue to be strong at least through the end of the decade,” Tellock said. “Demand for civil infrastructure, new energy and petrochemical capacity, and urban development all point to strong longer-term demand for our line of crawler, tower, and mobile hydraulic cranes. Our minimal exposure to the U.S. housing market reinforces our belief that we have ample opportunity for continued growth.”
Manitowoc Company's net earnings per diluted share were $0.76 for the fourth quarter of 2007, which is more than double the $0.35 for Q4 2006. This includes a $0.02 per share benefit related to the sale of the Manlift business in 2004.
For the 12 months that ended December 31, 2007, reported earnings per diluted share were $2.64 • a 100-percent increase over the full year 2006. Earnings per share from continuing operations before special items for 2007 were $2.68, up 90 percent from 2006. Earnings per share from continuing operations including special items for 2007 were $2.62, up 97 percent from 2006. Per share amounts for all periods reflect the two-for-one stock split on September 10, 2007.
Tellock said the current earnings guidance for 2008 earnings per share, excluding any unusual items, will be in the range of $3.20 to $3.40. “This guidance was issued late in the fourth quarter and represents an increase of between 19 percent and 27 percent from our outstanding 2007 results,” he said. “In addition, given the continued strong outlook in the crane segment, we are increasing our 2008 capex guidance to approximately $120 million.”