The Manitowoc Co. last week reported sales of $838.7 million for the fourth quarter of 2009, down 31.1 percent from $1.2 billion in the fourth quarter of 2008. The sales decrease was due primarily to a 49.1-percent decline in the Crane segment, partially offset by a 31.3 percent increase in the Foodservice segment.
On a GAAP basis, the company reported a loss of $23.5 million, or $0.18 per diluted share, for the quarter, versus a net loss of $200.4 million, or $1.54 per share, in the fourth quarter of 2008. Both periods included special items. Excluding special items, the adjusted earnings from continuing operations was a loss of $9.3 million, or $0.07 per share, for the fourth quarter of 2009, versus similarly adjusted earnings of $59.4 million, or $0.46 per share, in the fourth quarter of 2008.
For the full-year 2009, sales were $3.8 billion, a 16-percent decline from $4.5 billion in 2008. The net loss for 2009 was $704.2 million, or $5.41 per share, versus earnings of $10.0 million, or $0.08 per share, for the prior year. Excluding the special items described in the reconciliation below, net earnings from continuing operations for 2009 were $46.8 million, or $0.36 per share, versus $368.6 million, or $2.80 per share, for 2008.
“Although we continue to be faced with a challenging business environment, we are encouraged by recently improving metrics and trends for 2010,” said Glen Tellock, Manitowoc’s chairman and CEO. “We clearly exceeded our adjusted targets for cash flow and debt reduction, foodservice margin targets were achieved, and crane segment revenue was maintained at third-quarter levels. We also expect that 2010 will see increasing benefits from the operational efficiencies, process improvements, cost reductions, and synergies that we implemented in 2009.”
Fourth-quarter 2009 net sales in the Crane segment were $480.2 million, down 49.1 percent from $943.6 million in the fourth quarter of 2008. On a sequential quarter basis, fourth-quarter sales were essentially even with those in the third quarter of 2009. Crane segment operating earnings for the fourth quarter of 2009 decreased to $18.3 million from $114.9 million in the same period last year. On a sequential quarter basis, operating earnings were down $2.5 million from the third quarter of 2009 due primarily to reduced overhead absorption.
Crane segment backlog totaled $573 million at Dec. 31, 2009, a decline of 14.1 percent from the $667 million backlog at Sept. 30, 2009. “The percentage decline in backlog diminished in the fourth quarter as the net positive order flow trend that began in March continued through December,” said Tellock.
For 2010, the company said it expects that the year-over-year percentage decline in revenues in the Crane segment will be significantly lower than the 41.2 percent decline in 2009. “We also expect Crane segment revenues in the first half of 2010 will be significantly lower than the first half of 2009; however, we expect Crane segment revenue gains in the second half of 2010 versus the second half of 2009,” Tellock said. “Additionally, we expect full-year operating margins in our Crane segment will track above the 3.5 percent trough margin that we experienced in 2003. Other 2010 financial expectations include capital expenditures of approximately $50 million, depreciation and amortization of approximately $145 million, and debt reduction of at least $200 million.”
Headquartered in Manitowoc, Wis., The Manitowoc Co. is a provider of lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. The company also manufactures commercial foodservice equipment.
