Manitowoc Posts Record-Setting Quarter

July 31, 2007 • The Manitowoc Company, Manitowoc, Wis., reported outstanding results for the quarter ended June 30, 2007, setting records again for net sales, earnings per share, and backlog. For the quarter, net sales totaled $1.019 billion, the first time the company's quarterly revenue has exceeded $1 billion, which is an increase of 37 percent from the second quarter of 2006. Reported earnings per diluted share were $1.53 for the second quarter of 2007 compared to $0.67 for the second quarter of 2006.

Earnings per diluted share in the second quarter of 2007 included special items that increased reported earnings per share by $0.01. These items include the favorable settlement of a currency hedge associated with the crane segment's Indian acquisition and a gain on the sale of the aerial work platform parts business. These two gains were partially offset by a charge associated with the conversion of an overseas pension plan from a defined benefit to a defined contribution structure and a charge for a U.S. pension withdrawal liability. The 2006 quarter's reported results included a $0.15 per share charge associated with early retirement of debt. Excluding the special charges from both the 2007 and 2006 periods, earnings from continuing operations for the 2007 quarter increased 85 percent from the prior year period.

 

"Manitowoc Crane Group continues to be a solid performance driver for our company," said Glen Tellock, Manitowoc's president and CEO. "Global demand for our entire line of lifting solutions continues to be very robust. Our strategy of moving production closer to the end user continues to pay dividends as our booking rates and backlog remain strong.”

 

Second-quarter 2007 net sales in the crane segment increased 41 percent to $805.1 million, from $570 million in the second quarter of 2006. Operating earnings for the second quarter of 2007 increased 59 percent to $120.2 million from $75.6 million in the same period last year.

 

"Demand for engineered lift solutions continues to grow around the world, and Manitowoc Crane Group is ideally positioned to capture its share of that demand," Tellock said. "New infrastructure, energy, and industrial construction projects are being developed and funded in both established and developing markets. Furthermore, our global footprint, diverse product line, aftermarket support, and new product introductions are several of the catalysts driving our success in this robust market."

 

The company has reaffirmed its previous guidance that cash flow from operations will exceed $300 million in 2007.