Crane manufacturer Manitowoc Co. reported a first-quarter 2020 net loss of $7.8 million. First quarter adjusted net loss was $6.3 million, which included $4 million of other expense, primarily related to foreign currency losses. The company also reported net sales of $329.2 million compared to $418 million a year ago, a 21.2-percent decline.
Gross profit for the quarter was $63.2 million, compared to $83.2 million in the first quarter of 2019, a 24-percent slide. Adjusted EBITDA for the first quarter was $16.3 million or 5 percent of sales.
First quarter orders of $375 million declined 15 percent from the first quarter of 2019. Orders were unfavorably impacted by approximately $5.1 million because of changes in foreign currency exchange rates. Backlog as of March 31, 2020 totaled $520.9 million.
“Our first-quarter adjusted EBITDA of $16.3 million was in line with our planned expectations, despite the unprecedented conditions created by the COVID-19 pandemic,” said Barry Pennypacker, CEO & president of The Manitowoc Co. “This was made possible by the extraordinary commitment of our talented and resolute team. During this pandemic, our primary goal remains unchanged, ensuring the safety, health and well-being of all our employees, their families, our suppliers and customers. Our dedicated teams are working hard to deliver cranes and provide essential parts and services, and I could not be prouder of their commitment to our high standards while balancing personal challenges. We are grateful for the efforts our healthcare providers and first responders are making, and we are proud to support these front-line professionals by committing $100,000 from The Manitowoc Company Foundation in the fight against COVID-19.
“While we have remained operational in the U.S., our major facilities in Europe began closing in mid-March which delayed our ability to ship products. It is unclear how events unfold from here, however with ample liquidity and no significant debt maturities until 2026 we are well positioned to weather circumstances like this crisis. We continue to analyze all of our costs and take appropriate actions. We have substantially cut discretionary spending, while eliminating salary increases across the enterprise, including executives and board members. Furloughs, as well as temporary plant shutdowns, are also being planned based upon our order rates. In order to proactively manage our liquidity, we are significantly cutting our capital spending this year as well as suspending our share buyback program. Manitowoc entered this uncertain period as a more agile company and market leader with a strong balance sheet, and I am confident that we will emerge stronger when end markets successfully recover.”
The Manitowoc Co. is based in Manitowoc, Wis.
