Fueled by strong crane and food-service business, The Manitowoc Co. reported sales of $1 billion for the fourth quarter of 2011.
That performance was an increase of 24.5% over sales of $830.9 million in the fourth quarter of 2010. The overall sales increase was driven by a 39.9% increase in crane segment sales, and a more modest 2.2% increase in foodservice segment sales.
Fourth-quarter 2011 net sales in the crane segment reached $687.6 million, up nearly 40% over the $491.4 million in the same period of 2010. It was the first time since the final quarter of 2008 that quarterly Crane sales topped $685 million.
For the full-year, overall sales reached $3.7 billion, a 16.2% increase over the $3.1 billion reported in 2010.
Net income
Using GAAP, the capital goods manufacturer reported earnings of $15.3 million, or $0.12 per diluted share, in the fourth quarter, versus a net loss of $65.5 million, or $0.50 per diluted share, in the fourth quarter of 2010.
Also in 2011, the company reported a GAAP net loss of $10.5 million, or $0.08 per share, versus a GAAP net loss of $79.5 million, or $0.61 per share, in 2010.
Chairman and CEO Glen E. Tellock said in a press release that the company expected 2011 to be a transitional year. “We enter 2012 in a solid position to drive continued growth, building on the momentum we experienced in the fourth quarter,” he stated. “While we are optimistic about the year ahead, a challenging operating environment still lingers.”
Also in the fourth quarter, the company’s key business segments reported the following:
• Crane segment operating earnings increased to $39.5 million, compared to $30.5 million in the same period last year, resulting in an crane segment operating margin of 5.7%, down 50 basis points from fourth-quarter 2010 margins. The company said the year-over-year comparison was boosted by the higher sales volume, but offset by increased commodity costs, production inefficiencies, and a negative product sales mix. However, its Crane segment backlog totaled $761 million as of December 31, 2011, a 33% increase over the $572 million in 2010.
• Thanks to balanced growth across different geographies, fourth-quarter 2011 net sales in the company’s foodservice segment were $346.9 million, up 2.2% over the $339.5 million in the fourth quarter of 2010.
• Foodservice operating earnings in Q4 were $44.6 million, an increase of 12.6% over the $39.6 million in the same period of 2010, which increased the segment’s Q4 operating margin of 12.9% percent. That compares to an operating margin of 11.7% during the prior year quarter.
2012 guidance
During 2012, the company expects crane revenues to be 10 to 15% higher, and crane operating earnings to be from 30 to 40% higher on a percentage basis.
The percentage increase in food service revenue is expected to be in the high single digits.
