Cranes Drive Manitowoc Sales and Earnings

October 26, 2006 • Manitowoc Co. Inc., Manitowoc, Wis., has reported its third consecutive quarter of record net sales and earnings. Net sales during third quarter 2006, which ended September 30, increased 38% to $779 million from $564.9 million during the third quarter of 2005. Reported earnings per diluted share were 80 cents for the third quarter of 2006, compared to 28 cents for the third quarter of 2005.

 

“Because of The Manitowoc Company's global leadership in the lifting industry, the company again delivered strong financial performance to its shareholders,” Terry D. Growcock, Manitowoc's chairman and chief executive office said. “Third quarter operating earnings from Manitowoc's crane segment increased more than 150% compared to the third quarter of 2005 as we benefited from robust demand, high capacity utilization, and excellent factory productivity.”

 

Third quarter 2006 net sales in the crane segment increased 44% to $583.3 million, from $404.9 million in the third quarter of 2005. Operating earnings for the third quarter of 2006 increased 157% to a record $76.1 million, from $29.6 million in the same period last year. The strength of the crane segment's end-markets is reflected in its backlog, which totaled $1.4 billion, an increase of 25% from June 30, 2006, and up 120% from Sept. 30, 2005.

 

“Our crane segment's global positioning and strong, customer-focused product lines continue to drive outstanding financial performance,” Growcock said. “Our operating margin of 13% for the quarter was driven by high capacity utilization and efficient manufacturing techniques that have enabled us to increase productivity and leverage our increased volume as a result of strong global market conditions. Our broad product line is engaged with essentially all aspects of commercial and industrial construction as demand remains strong in all geographic regions and across all product categories.”

 

Based on the third quarter results, Manitowoc boosted its 2006 earning guidance to $2.70 to $2.75 per share for the year, excluding special items. Cash flow from operations is expected to exceed $200 million for the full year, expanding on the strong year-to-date performance of $129 million.