The complete report:
manitowoc.com
THE MANITOWOC COMPANY, INC.
News for Immediate Release
STRONG FIRST QUARTER PERFORMANCE IN ALL BUSINESS SEGMENTS BOOSTS
MANITOWOCOS EARNINGS OVER 40%
MANITOWOC, Wisconsin, April 9, 1998 D The Manitowoc Company, Inc. (MTW), today announced
results for its first quarter ended March 31 that were up sharply from those of last year.
First-quarter net earnings for the diversified capital goods manufacturer climbed 44 percent from 1997 on a
sales gain of 33 percent.
Net earnings were $9.3 million, equal to 54 cents per share (basic and diluted), compared with $6.5 million, or
38 cents per share (37 cents diluted), in the first quarter of 1997.
Net sales for the first three months of 1998 totaled $154.1 million, compared with $116.0 million the year
before.
Each of the company's three business segments - foodservice equipment, cranes, and marine operations -
contributed to the improved results with higher sales, operating earnings, and margins for the quarter.
Operating earnings totaled $17.6 million, up 59 percent from the same quarter last year.
"This quarter reflects the growth we expected," commented Fred M. Butler, president and chief executive
officer. "Most of the factors that affect our performance are positive; so I expect we will continue to post gains
in year-over-year comparisons as 1998 progresses.
"Most of our improvement was volume related, but we also benefited from productivity gains in our
large-crane operation and an improved mix in our marine business. The sale of our Tonka walk-in refrigerator
business (completed on December 31, 1997), eliminated a unit that had depressed our foodservice equipment
earnings.
"We have recently completed the introduction of our 'Q' Series ice-cube machines, which continue to receive
enthusiastic response from all our customers. Our integration of SerVend continues exceptionally well, and its
record results helped our first-quarter comparison in the foodservice equipment segment. On other fronts, our
team approach to identify and capitalize on cross-selling opportunities within our foodservice segment is
producing encouraging results, and Manitowoc's international service system will soon begin to help expand
the reach of our SerVend, Kolpak, and McCall units.
"Throughout the first quarter, our backlog of unfilled crane orders continued to grow despite heavy shipments.
At the end of March, our backlog reached $163 million; up from $149 million at year end, and up from $145
million one year ago. The majority of this backlog is destined for the North American and European markets,
with only one machine order for an Asian customer.
"More importantly, the backlog includes multiple orders of ManitowocOs newest cranes - the 777 truck crane
and the 2250 liftcrane. In addition, orders for the 777 truck crane and 21000 liftcrane announced last week at
Bauma - the world's largest construction equipment trade show - will further increase the backlog. These new
cranes, along with other models under development, will enable Manitowoc to enhance its position as the
world's leading manufacturer of high-capacity, lattice-boom liftcranes.
"Marine results were buoyed by a record level of winter fleet work, the completion of a tug/barge conversion,
and emergency repairs on a 635-foot self-unloading bulk carrier. The Great Lakes shipping industry set a
post-recession hauling record last year, and the coming season looks even stronger. This could lead to
increased work for our shipyards in the near-term," added Butler.
The effective tax rate for the comparable quarters remained unchanged at 37 percent.
Capital investment in the quarter totaled $4.2 million. The company expects capital investments to total
between $12 and 15 million for the current year.
Inventories and accounts receivable rose during the quarter in line with volume increases and normal seasonal
patterns.
Interest expense was up due to the increased debt following the SerVend acquisition.
The weighted average number of common shares used to calculate basic earnings per share was 17.3 million in
the first quarter of both 1997 and 1998.
The Manitowoc Company, Inc. is a leading manufacturer of ice-cube machines, ice/beverage dispensers, and
commercial refrigeration equipment for the foodservice industry. It is also a leading producer of lattice-boom
cranes, boom trucks, and related products for the construction industry and specializes in ship-repair work for
vessels operating on the Great Lakes.
Company Contact:
Robert R. Friedl
Senior Vice President and
Chief Financial Officer
414-683-8136
THE MANITOWOC COMPANY, INC.
Unaudited Consolidated Financial Information
For the First Quarter of Calendar Years 1998 and 1997
(In thousands, except per-share data)
Income Statement
QUARTER ENDED March 31
1998
1997
Net sales
$154,139
$116,041
Cost of sales
110,667
84,033
Gross margin
43,472
32,008
Engineering, selling & administrative
24,715
19,927
Amortization
1,172
780
Operating earnings (loss)
17,585
11,301
Interest expense
(2,408)
(1,124)
Other income - net
(357)
105
Earnings before taxse on income
14,820
10,282
Provisions for taxes on income
5,483
3,804
NET EARNINGS
$9,337
$6,478
BASIC EARNINGS PER SHARE
$0.54
$0.38
DILUTED EARNINGS PER SHARE
$0.54
$0.37
Segment Summary
QUARTER ENDED March 31
1998
1997
Net sales:
Foodservice products
$67,007
$52,509
Cranes & related products
76,192
56,343
Marine
10,940
7,189
Total
154,139
116,041
Operating earnings (loss):
Foodservice products
9,316
6,176
Cranes & related products
9,762
6,937
Marine
2,305
1,027
General corporate expense
(2,626)
(2,059)
Amortization
(1,172)
(780)
Total
$17,585
$11,301
Balance Sheet
Mar. 31, 1998
Dec. 31, 1997
ASSETS
Current assets:
Cash & temporary investments
$12,477
$13,629
Accounts receivable
82,098
59,237
Inventories
72,987
54,701
Prepaid expenses & other current assets
17,004
17,949
Total current assets
184,566
145,516
Other assets
159,188
159,661
Property, plant & equipment - net
92,910
91,191
TOTAL ASSETS
$436,664
$396,368
Liabilities & Stockholders' Equity
Current liabilities:
Accounts payable & accrued expenses
$102,455
$96,540
Current portion long-term debt
16,384
15,400
Short-term borrowings
19,000
49,000
Product warranties
10,642
9,772
Total current liabilities
148,481
170,812
Long-term debt
121,377
66,359
Other non-current liabilities
30,392
30,579
Stockholders' equity
136,414
128,618
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
$436,664
$396,368
Cash Flow Summary
QUARTER ENDED March 31
1998
1997
Net earnings
$9,337
$6,478
Non-cash adjustments to income
3,551
2,899
Changes in operating assets and liabilities
(34,097)
(18,801)
Net cash provided by (used for) operations
(21,209)
(9,424)
Capital expenditures
(4,224)
(3,213)
Proceeds from sale of fixed assets
218
0
Treasury stock issued
97
0
Dividends paid
(1,944)
(1,919)
Payments on long-term borrowings
(3,998)
(2,759)
Proceeds from short-term borrowings - net
29,900
11,500
Effect of exchange rate on cash
8
(46)
Net decrease in cash and temporary investments
$(1,152)
$(5,861)
Company Contact:
Robert R. Friedl
Senior Vice President and
Chief Financial Officer
414-683-8136 |
