Sales Plunge at Manitowoc

Sales Plunge at Manitowoc

The Manitowoc Company, Inc. MTW reported fourth-quarter 2016 adjusted loss per share of 23 cents per share, as against an earnings of 5 cents reported in the year-ago quarter. Loss was much wider than the Zacks Consensus Estimate of a loss of 17 cents.

Including special items, the company posted a loss of 24 cents per share in the reported quarter. It had posted earnings of 32 cents per share a year ago.

The maker of cranes posted a 30% year-over-year plunge in sales to $378 million in the reported quarter. Revenues also missed the Zacks Consensus Estimate of $391 million.

Operational Update

Cost of sales declined 26.8% to $332.7 million in the quarter from $454.9 million in the prior-year quarter. Gross profit plummeted 48% year over year to $45.5 million. Additionally, gross margin contracted 400 basis points to 12%.

Engineering, selling and administrative expenses descended 19.7% year over year to $61.9 million. Adjusted operating loss was $16.4 million compared with a gain of $11.1 million in the year-ago quarter.


Backlog was $323.8 million as of Dec 31, 2016 as against $353.6 million in third-quarter 2016. Fourth-quarter 2016 orders of $348.3 million fell 18% from the year-ago quarter.

Financial Updates

Manitowoc ended the quarter with cash and temporary investments of $69.9 million compared with $31.5 million at year-end 2015. Long-term debt was $269 million as of Dec 31, 2016 compared with $1,330 million as of Dec 31, 2015. The company reported cash used in operations of $122.4 million in 2016 compared with cash usage of  $25.5 million in 2015.

2016 Performance

Manitowoc reported adjusted loss of 44 cents per share in 2016, compared with a loss of 36 cents per share recorded in the prior year. Earnings were in line with the Zacks Consensus Estimate of a loss per share of 44 cents. Including one-time items, the bottom line came in at a loss of $2.73 as against earnings of 48 cents recorded in 2015.

Revenues decreased 13.9% year over year to $1.61 billion from $1.87 billion in 2015. Revenues missed the Zacks Consensus Estimate of $1.63 billion.


Manitowoc expects revenues to decline approximately 8–10% year over year in 2017. Adjusted operating income margin is anticipated to lie between 0 and 1%. Depreciation is projected at approximately $40–$45 million and amortization of intangibles at around $2–$2.5 million. Capital expenditures are projected at approximately $30 million.

Share Price Performance

In the last one year, Manitowoc has underperformed the Zacks classified Machinery-Construction/Mining sub-industry with respect to price performance. The stock lost around 52.4%, while the industry rose 50.9% over the same time frame.

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