Here is some news from the company web site:
hep.umn.edu
NEWS For Immediate Release
MID FIRST-QUARTER UPDATE
To Our Shareholders and Prospective Investors:
Following is a mid first-quarter update on The Manitowoc Company and
its businesses.
As mentioned in our previous update, we are encouraged about MTW's
prospects for 1998, and our optimism is growing stronger.
FOODSERVICE EQUIPMENT UPDATE
In foodservice, we completed the roll-out of our "Q" Series ice-cube
machines last month. Our ice-machine facility in Manitowoc has
converted its production to accommodate the new 14-model product
line, and is building inventory to match internal forecasts.
Additionally, all ice machines formerly produced by SerVend have been
shifted to Manitowoc Ice; and all countertop ice dispensers have now
been shifted from Manitowoc to SerVend. We expect to shift the
production of our floor-standing ice dispensers from Manitowoc to
SerVend during the second quarter. These moves will result in "focused"
factories dedicated to producing one specific product line. This approach
makes the best use of our people, our facilities, and our capabilities, while
also lowering our costs.
As expected, the synergies between Manitowoc Ice and SerVend are
quite strong. In fact, the results to date have exceeded our original
assumptions. And, with Pepsi's spin-off of Taco Bell, Pizza Hut, and
KFC, we have even greater opportunities that are now being actively
pursued.
Although Kolpak started 1998 with a slow sales volume, recent order
activity has increased substantially. From receipt of order to shipment,
Kolpak can deliver any unit in its standard product line within four weeks.
Our ability for quick delivery gives us a competitive edge in the market
place.
To enhance this advantage, a facility rearrangement program is underway
at our Kolpak walk-in refrigerator/freezer plant in River Falls, WI. New
equipment is being added to this operation and certain manufacturing
processes are being streamlined. We also have noted a marked
improvement at our Sparks, NV, facility. Although Kolpak has
experienced several quarters of delayed ship-ments as major chains have
pushed back new-store openings, we see this trend beginning to wane.
On the international front, Kolpak has recently signed a licensing
agreement with Blue Star, a foodservice equipment producer in India, to
build our walk-ins for the Middle East and Asian markets.
Across the board, we are increasing our foodservice equipment sales and
building market share as more cross-selling opportunities are being
realized. Kolpak's relationships with major chain customers have created
numerous opportunities for our reach-in and ice machine products.
SerVend has given us improved access to the soft-drink bottlers and
convenience-store outlets. Similarly, Manitowoc Ice has aided Kolpak,
McCall, and SerVend in reaching the replacement and renovation
segments of the foodservice business. The Manitowoc service system is
helping both Kolpak and SerVend to expand their market base. Our team
approach in identifying and capitalizing on cross-selling opportunities is a
key element in our foodservice marketing strategy.
CRANES & RELATED PRODUCTS UPDATE
Manitowoc's crane segment entered 1998 on a strong note. Despite a
heavy level of shipments in January, our backlog of unfilled crane orders
is up from year-end. Included in this larger back-log are numerous
orders for our newest crane, the Model 2250. Providing capacity and
perfor-mance improvements, the 2250 will build on the reputation of the
highly successful Model M-250 we introduced in 1992.
Over 90% of our crane backlog is domestic, with the remainder destined
for European markets. The active crane replacement cycle that began in
the United States approximately 36 months ago continues to be strong
and should provide us with many opportunities.
Manitowoc Cranes will premier the 2250 later this month at Bauma, the
world's largest con-struction equipment trade show. In addition, it will
display the Model 777 with a luffing-jib attachment. Both of these units
demonstrate Manitowoc's ability to drive the market with innovative,
lattice-boom cranes. Continuing that commitment, Manitowoc Cranes
has several new products under development. They include the 777 truck
crane and new crawler cranes that will expand its product line at the low
end and high end of its current capacity range.
Manitex is off to a better start in 1998 than last year. To enhance its
penetration of the rental market, Manitex recently introduced the first
unit in its Lone Star™ line, the Model 1461. Even-tually, the Lone
Star line will evolve into a series of mid-sized, value-priced boom trucks
that will serve the needs of equipment rental operations and their
respective end users.
West-Manitowoc was our only business unit affected by the recent
economic downturn in Asia. Although West had several units in its 1998
production forecast slated for the Pacific Rim, these sales are not likely to
materialize. To offset this, West is ramping up its outsourcing with
domestic vendors to provide additional components for its 222, 222HD,
and 222EX models, plus the recent-ly introduced Model 111
lattice-boom crawler crane. These models are sized for several market
segments - including bridge contractors, general contractors, and
crane-rental companies - and have high unit sale potential in the
Western Hemisphere. West-Manitowoc is a leading supplier for these
models in North America, based on industry statistics. And, West
expects to continue its growth in 1998 as it expands its sales and
marketing efforts into other international markets.
MARINE OPERATIONS UPDATE
On the Great Lakes, the 1997 shipping season achieved a post-recession
hauling record - 125 million tons of liquid and bulk cargo -- delivered
with a fleet of just 69 vessels. Looking ahead, 1998 is xpected to generate
even more tonnage. We believe this trend could lead to new-building
opportunities as more ship owners are considering the age and condition
of their existing vessels against the cost and efficiency advantages of new
hulls like the tug/barge units recently completed by Bay Shipbuilding.
Our ship-repair facilities are presently working around-the-clock to
service the winter fleet. In addition to the 17 vessels docked at Sturgeon
Bay and 16 vessels in Toledo, we expect to perform work on four other
vessels from our yard in Cleveland and other locations on the Great
Lakes.
Besides our slate of winter repair work, our Toledo yard recently
completed a casualty repair for the 635-foot, bulk carrier M/V Buffalo.
After running aground near Detroit, the Buffalo sailed to our yard in
Toledo for drydocking and inspection. More than 112,000 pounds of bow
and hull plate were replaced, in addition to structural and major
mechanical repairs to the Buffalo's bow thruster and tunnel.
Although we have not yet secured an off-season marine project for 1998,
we are discussing several projects with traditional Great Lakes customers.
We're confident a sizable, off-season marine project can be obtained for
the year.
OTHER INFORMATION
MTW expects to announce its first-quarter results prior to the market
opening on Thursday, April 9th; and will hold its quarterly conference
call at 1:00 p.m. CST that same day. Should this schedule change, we will
inform you accordingly.
For more information about The Manitowoc Company, and its
businesses, products, or markets, please visit our website at
www.manitowoc.com, or call us at 920-684-4410. Thank you for your
interest in our firm.
A Note on Forward-Looking Statements
Any forward-looking statements contained in this document are based
on current expectations that may differ significantly from actual
results due to risks and uncertainties in our operations and the
business environment. Some of these are listed on page 20 of the
company's 1997 annual report. Any such forward-looking statements
are made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995.
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