Manitowoc Releases Fiscal 2006 Results

February 1, 2007 • The Manitowoc Company, Manitowoc, Wis., has reported its results for the fourth quarter of 2006 and announced that the company's fiscal 2006 results set records for sales, earnings per share, and cash generation. For the 12 months ended December 31, 2006, the company's net sales totaled $2.9 billion, an increase of more than 30% from 2005. Earnings per share from continuing operations before special items totaled $2.81 for the 2006 fiscal year, an increase of 134% from the prior year, and 2006 full year cash from operations totaled $294.1 million, up 176% from $106.7 million in 2005.

 

All three metrics set new records and greatly exceeded prior records from the company's 104-year history. Reported GAAP earnings per diluted share were $2.65 for the full year ended December 31, 2006 compared to reported GAAP earnings per diluted share of $1.07 for the same period in 2005.

 

For the most-recent quarter, net sales increased 32%t to $775.2 million from $589.3 million during the fourth quarter of 2005. Reported earnings per diluted share were $0.69 for the fourth quarter of 2006 compared to $0.30 for previous year. Earnings per diluted share from continuing operations before special items for the fourth quarter of 2006 increased 188 percent to $0.69, up from $0.24 for the fourth quarter of 2005.

 

"Our financial and shareholder performance in 2006 is the direct result of our long-held strategy to build a global leadership position in the lifting industry," said Terry D. Growcock, Manitowoc's chairman and chief executive officer. "We believed then that the lifting industry would experience a strong increase in activity and product demand, and today's market environment validates that belief. Manitowoc's broad product line and global footprint have positioned the company very well to continue to enjoy the benefits of strong market demand."

 

Focusing on the crane segment, fourth-quarter 2006 net sales increased 38%to $604.6 million, from $438.9 million in the fourth quarter of 2005. Operating earnings for the fourth quarter of 2006 increased 159% to a record $77.6 million, from $30.0 million in the same period last year. The strength of the Crane segment's end markets is reflected in its backlog, which totaled $1.5 billion at year-end, an increase of 10% from September 30, 2006, and up 77%from December 31, 2005.

 

"The crane segment continues to drive outstanding financial performance through its global positioning and strong product line," Growcock said. "Our operating margin of 12.8% for the quarter and 12.6% for the full year reflects the operating leverage inherent in a world-class manufacturing organization. The crane segment intends to meet the strong demand for its products by focusing on optimizing current facility utilization and by leveraging external resources. The effectiveness of this strategy is shown by the ability to grow the backlog while maintaining delivery schedules that meet customer requirements."

 

In 2007, the Manitowoc Company will continue to focus on the six ideals that drove it in 2006: growth, innovation, customer focus, excellence in operation, people and organizational development, and creating value. "The strategic priorities that drove our extraordinary growth in 2006 will serve as Manitowoc's roadmap for 2007," Growcock said. "We are adding a seventh priority in 2007 - World-Class Global Aftermarket Support."

 

Concerning the seventh priority Manitowoc Company hopes to use programs such as Crane CARE and its partnerships with thousands of dealers and technicians in the foodservice industry to create a powerful support network. The company hopes that it will serve as a strategic differentiator between Manitowoc and their established competitors, as well as new entrants to our markets from emerging economies.