The Manitowoc Company reports Second-Quarter 2024 financial results with net sales down 6.8% year-over-year

Posted on Aug 7, 2024 in Nuts & Bolts

Today, the Manitowoc Company, Inc. reported a second-quarter net income of $1.6 million, or $0.04 per diluted share. Second-quarter adjusted net income ⁽¹⁾ was $8.8 million, or $0.25 per diluted share.

Net sales in the second quarter decreased 6.8% year-over-year to $562.1 million and were unfavorably impacted by $2.7 million from changes in foreign currency exchange rates. In the second quarter, adjusted EBITDA ⁽¹⁾ was $36.0 million, a decrease of $24.4 million or 40.4% from the prior year.

Orders in the second quarter were $428.4 million, a 22.2% decrease from the prior year. This resulted in a backlog of $836.3 million at the end of the second quarter. Orders were unfavorably impacted by $2.0 million from changes in foreign currency exchange rates.

“During the second quarter, we faced a variety of operational issues which led to lower-than-anticipated results. In addition, the Tower Crane business in Europe remained a headwind to our results. Order intake was sluggish for mobile cranes in Europe and North America. Mobile customers have been slow to commit to new cranes in the face of the uncertainties associated with the upcoming U.S. election and the continued higher interest rate environment. Looking at the balance of the year, we expect weaker demand to continue. As a result, and with a focus on inventory reductions to generate free cash flow, we took actions to adjust our build schedules in the second half. We have updated our full year guidance accordingly,” commented Aaron H. Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc.

“CRANES+50 is the driving force in our transformation as a stand-alone crane company. Since its launch, our non-new machine sales have grown 34%, expanding our higher margin, recurring revenue streams. We remain focused on continuous improvement through The Manitowoc Way and growing our aftermarket through CRANES+50 to drive long-term shareholder value,” added Ravenscroft.

Updated Full-Year 2024 Guidance

Manitowoc is updating its full-year 2024 guidance as follows:

Net sales – $2.175 billion to $2.225 billion (previously $2.275 billion to $2.375 billion)
Adjusted EBITDA – $125 million to $140 million (previously $150 million to $180 million)
Depreciation and amortization – $60 million to $63 million (previously $63 million to $67 million)
Interest expense – $36 million to $38 million (previously $32 million to $34 million)
Provision for income taxes – $9 million to $13 million (previously $18 million to $22 million)
Adjusted diluted earnings per share – $0.45 to $0.90 (previously $0.95 to $1.55)
Capital expenditures – $60 million, of which approximately $25 million is for the rental fleet
Free cash flows – $30 million to $50 million (previously $30 million to $60 million)

(1)		Other non-recurring items – net for the three months ended June 30, 2024, relate to $5.3 million of costs associated with a legal matter with the U.S. EPA and $0.1 million of one-time costs. Other non-recurring items – net for the six months ended June 30, 2024, relate to $5.3 million of costs associated with a legal matter with the U.S. EPA and $0.2 million of one-time costs. Other non-recurring items – net for the three and six months ended June 30, 2023, relate to $10.8 million of costs associated with a legal matter with the U.S. EPA. Other non-recurring items – net for the trailing twelve months relate to $15.7 million of costs associated with a legal matter with the U.S. EPA and $0.8 million of one-time costs.
(2)		Other (income) expense – net includes net foreign currency gains (losses), other components of net periodic pension costs, and other items in the three and trailing twelve months ended June 30, 2024, and the three months ended June 30, 2023. Other expenses – net for the three and six months ended June 30, 2023, include a $9.3 million write-off of non-cash foreign currency translation adjustments from the curtailment of operations in Russia.