The Manitowoc Co. this week reported sales of $830.9 million for the fourth quarter of 2010, up 4.1 percent from $798.1 million in the fourth quarter of 2009. The sales increase was primarily the results of a 6.8-percent increase in Foodservice segment sales, coupled with a 2.3-percent increase in Crane segment sales. Fourth-quarter and prior-period results have all been retrospectively adjusted to classify the company’s sale of the Kysor/Warren business as a discontinued operation.
On a GAAP basis, the company reported a loss of $63.8 million, or $0.49 per diluted share, in the fourth quarter versus a net loss of $23.5 million, or $0.18 per diluted share, in the fourth quarter of 2009. Both periods included special items. Excluding special items, the adjusted earnings from continuing operations were $15.0 million, or $0.11 per diluted share, in the fourth quarter of 2010, versus an adjusted net loss of $12.2 million, or $0.09 per diluted share, in the fourth quarter of 2009.
For the full-year 2010, sales were $3.1 billion, a 13.2-percent decline from $3.6 billion in 2009. The net loss in 2010 was $71.4 million, or $0.55 per share, versus a loss of $704.2 million, or $5.41 per share, in the prior year.
“The unrelenting focus on our initiatives during the downturn has left Manitowoc much better positioned to capitalize on new opportunities and further extend our leadership position amid recovering end markets,” said Glen Tellock, Manitowoc's chairman and CEO. “In the face of continuing market uncertainty, we set aggressive targets for the company in 2010, and through the hard work and tireless execution by our people, we achieved nearly all of our goals. In the fourth quarter, we experienced year-over-year sales growth in both of our segments, driven by continued strong performance in Foodservice and early signs of recovery in our Crane segment. We are optimistic about the recovery signs we’re seeing, and through continued focus on our initiatives and operating objectives, we are looking forward to continued sales and profitability growth in 2011.”
Fourth-quarter 2010 net sales in the Crane segment were $491.4 million, up 2.3 percent from $480.3 million in the fourth quarter of 2009, and up 12.0 percent from third-quarter 2010 sales of $438.8 million.
Crane segment operating earnings for the fourth quarter of 2010 increased to $30.4 million from $18.3 million in the same period last year and $16.1 million in the third quarter of 2010. This resulted in a Crane segment operating margin of 6.2 percent for the fourth quarter of 2010, up from 3.8 percent in the same period in 2009, and 3.7 percent in the third quarter of 2010.
Crane segment backlog totaled $572 million as of Dec. 31, 2010, an increase of 27.7 percent from the $448 million backlog at Sept. 30, 2010. The increase in backlog was due to a solid ramp-up in demand, across all end markets and most product lines, throughout the fourth quarter.
“Exceptionally strong order rates toward the end of the fourth quarter drove year-over-year and sequential sales growth for our Crane segment. North America and Europe are beginning to show signs of modest recovery, and we’re encouraged by new orders from dealers that are beginning to replenish their inventories,” Tellock said. “Additionally, strong operating margins for the quarter resulted in full-year margins well above those witnessed in previous trough years. While we were encouraged by the increasing demand for our products toward the end of 2010, we do expect potential volatility in orders during 2011 as end markets regain their footing.”
The Manitowoc Co., Manitowoc, Wis., is a multi-industry, capital goods manufacturer with nearly 100 manufacturing, distribution, service, and/or office facilities in 26 countries. It provides lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. Manitowoc also is one of the world's leading innovators and manufacturers of commercial foodservice equipment.
