The Manitowoc Company Reports Second-Quarter 2018 Financial Results
MILWAUKEE--(BUSINESS WIRE)--Aug 6, 2018--The Manitowoc Company, Inc. (NYSE: MTW), a leading global manufacturer of cranes and lifting solutions, today reported second-quarter net sales of $495.3 million and diluted EPS (“DEPS”) on a GAAP basis of $0.27 and $0.40 on an adjusted basis.
Second-quarter orders of $430.8 million were up 14% from the comparable period in 2017. Backlog totaled $692.1 million at June 30, 2018, up 41% from the second-quarter 2017.
Second-quarter 2018 net sales were $495.3 million versus $394.6 million in the comparable period in 2017; a year-over-year increase of 26%. The increase was attributable to improved crane shipments across all regions, with the U.S. and European markets generating the majority of the increase.
The Company reported operating income of $24.1 million as compared to $11.9 million in the prior year. Income from continuing operations of $9.9 million, or $0.27 per diluted share, in the second-quarter 2018 versus $0.7 million, or $0.02 per diluted share, in the second-quarter 2017. Adjusted income from continuing operations (1) was $14.3 million, or $0.40 per diluted share, in the second-quarter 2018 versus adjusted income from continuing operations of $6.5 million, or $0.18 per diluted share, in the comparable period of 2017. Adjusted EBITDA (1) for the second-quarter 2018 was $37.5 million compared to $27.2 million in the same period last year.
“I am very pleased with our continuing momentum in delivering solid financial results using the principles of The Manitowoc Way. We achieved our fifth consecutive quarter of year-over-year improvement in adjusted EBITDA percentage, along with a 14 percent year-over-year increase in orders. Our product revolution is real, highlighted by the outstanding customer, dealer and investor feedback from our Crane Days event held in June, 2018 at our Shady Grove manufacturing facility,” commented Barry L. Pennypacker, President and Chief Executive Officer of The Manitowoc Company, Inc.
“Key markets continue to show signs of recovery, particularly in North America. In spite of the well-documented increased input costs such as tariffs and steel costs, we remain committed to delivering on our financial targets and transforming Manitowoc into a world-class crane manufacturer while continuing to improve the returns for our shareholders. We have updated our EBITDA guidance by narrowing the range as a result of better visibility for the remainder of the year,” added Pennypacker.
Full-Year 2018 Guidance
Manitowoc updates its’ full-year 2018 financial guidance as follows:Revenue – approximately $1.775 to $1.850 billion; Adjusted EBITDA - approximately $105 to $115 million; Depreciation - approximately $36 million; Restructuring expense - approximately $13 to $15 million; Capital expenditures - approximately $25 to $30 million; and Income tax expense - approximately $14 to $20 million.
Investor Conference Call
On Tuesday, August 7th, 2018, at 10:00 a.m. ET (9:00 a.m. CT), The Manitowoc Company’s senior management will discuss its second-quarter 2018 earnings results during a live conference call for security analysts and institutional investors. A live audio webcast of the call, along with the related presentation, can be accessed in the Investor Relations section of Manitowoc’s website at www.manitowoc.com. A replay of the conference call will also be available at the same location on the website.
About The Manitowoc Company, Inc.
Founded in 1902, The Manitowoc Company, Inc. is a leading global manufacturer of cranes and lifting solutions with manufacturing, distribution, and service facilities in 20 countries. Manitowoc is recognized as one of the premier innovators and providers of crawler cranes, tower cranes, and mobile cranes for the heavy construction industry, which are complemented by a slate of industry-leading aftermarket product support services. In 2017, Manitowoc’s net sales totaled $1.6 billion, with over half generated outside the United States.
(1) Non-GAAP adjusted net income (loss) (“adjusted net income (loss)”) and non-GAAP adjusted EBITDA (“adjusted EBITDA”) are financial measures that are not in accordance with GAAP. For a reconciliation to the comparable GAAP numbers please see schedule of “Non-GAAP Financial Measures” at the end of this press release. Manitowoc believes these non-GAAP financial measures provide important supplemental information to both management and investors regarding financial and business trends used in assessing its results of operations. Manitowoc believes excluding specified items provides a more meaningful comparison to the corresponding reporting periods and internal budgets and forecasts, assists investors in performing analysis that is consistent with financial models developed by investors and research analysts, provides management with a more relevant measure of operating performance and is more useful in assessing management performance.
This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of the management of the Company and are subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements typically containing words such as “intends,” “expects,” “anticipates,” “targets,” “estimates,” and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results and developments to differ materially include, among others:
• changes in economic or industry conditions generally or in the markets served by Manitowoc;
• unanticipated changes in customer demand, including changes in global demand for high-capacity lifting equipment, changes in demand for lifting equipment in emerging economies, and changes in demand for used lifting equipment;
• unanticipated changes in revenues, margins, costs, and capital expenditures;
• the ability to increase operational efficiencies across Manitowoc’s businesses and to capitalize on those efficiencies;
• the ability to significantly improve profitability;
• the risks associated with growth or contraction;
• changes in raw material and commodity prices;
• foreign currency fluctuation and its impact on reported results and hedges in place with Manitowoc;
• the ability to focus on customers, new technologies, and innovation;
• uncertainties associated with new product introductions, the successful development and market acceptance of new and innovative products that drive growth; and
• risks and factors detailed in Manitowoc’s 2017 Annual Report on Form 10-K and its other filings with the United States Securities and Exchange Commission.
Manitowoc undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements only speak as of the date on which they are made. Information on the potential factors that could affect the Company’s actual results of operations is included in its filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2017.
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