Global crane manufacturer Manitowoc posted fourth quarter net sales of $481.5 million compared to $378.2 million in the fourth quarter of 2016, a 27.3-percent revenue jump. Fourth quarter orders totaled $620.2 million, a 78-percent year-over-year increase. Backlog totaled $606.6 million on Dec. 31, 2017, an 87-percent increase compared to a $323.8 million backlog at the end of 2016.
The majority of the fourth quarter year-over-year increase was attributed by the company to increased demand, especially in the United States and European markets. More than 40 percent of unit revenue in the fourth quarter came from new products introduced since Manitowoc became a stand-alone crane company.
The company reported net income from continuing operations of $35.6 million, or $0.98 per diluted share, in the fourth quarter of 2017 compared to a net loss of $32 million in the fourth quarter of 2016
Full year revenue decreased $31.8 million to $1,581.3 million, although orders increased 32 percent year over year to $1,864.2 million. Adjusted EBITDA was $67.4 million, a represented a year-over-year increase of 313 basis points in adjusted EBITDA margin.
“2017 was a pivotal year for Manitowoc,” said Barry Pennypacker, Manitowoc president and CEO. “Despite a 2-percent decline in revenue versus the prior year, we delivered a 313-basis-point improvement in adjusted EBITDA margin, and operating cash flow improvement of over $200 million. Our net debt improved over $55 million versus prior year due to prudent cash management. These results clearly demonstrate strong operational improvements in the core business through the continued implementation of the principles of The Manitowoc Way.
“During the fourth quarter of 2017, we saw an increase of 78 percent year over year in orders primarily driven by increasing customer sentiment in the North American market, coupled with continued market share gains in our key areas of focus. Looking ahead, as reflected in our guidance, we expect profitability to continue to increase as we execute our strategic priorities.”
For 2018, Manitowoc expects adjusted EBITDA in the range of $96 to $116 million, along with depreciation of approximately $39 million. It expects capital expenditures to be in the range of $25 to $30 million.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.