Manitowoc release second quarter figures

Manitowoc Co. Inc., manufacturers of tower cranes and mobile cranes, have announced their most recent sales figures, which are an increase on the last quarter, but still below last year's levels.

Manitowoc is based in Wisconsin, and is a major employer in Franklin County, where its plant is located in Shady Grove.

The sales figures that Manitowoc released are a 23 percent increase on the previous quarter, which is still 31 percent less than the second quarter of last year. During 2008, in the second quarter, Manitowoc sold cranes worth $1.1 billion; this second quarter saw sales of $425 million. Glen E.Tellock, Chairman and CEO of Manitowoc, said, The second-quarter crane segment results illustrate the continuing challenges of the current economic environment in which we operate.

The first part of 2009 saw Manitowoc cut the workforce at Shady Grove by 750 members of staff, whilst the share prices fell to a low of less than $5 per share, compared with the $40 per share which was quoted in 2008; at present, the shares are on the rise, with the current price being $10 per share. Like many other construction equipment manufacturers, Manitowoc is focusing on the developing markets, where the economic recovery has been much swifter than the US or Europe, with Trellock commenting, Similar to prior quarters, emerging markets such as Asia, Latin America, and the Middle East demonstrated positive signs of improvement, while demand in the developed economies of North America and Europe continues to be weak.

Eric Etchart, president of the Manitowoc Crane Group, says that the emrging and developing markets account for 40 percent of the crane orders that they are receiving currently, with the demand for tower cranes even on the rise in Europe. We're seeing better and better times, Etchart says, whilst still remaining cautious.

One problem is that companies and individuals wishing to order cranes are struggling to obtain the necessary credit. A sizeable order had to be removed recently because of what Tellock describes as, persistent financing challenges in the current credit markets.

The firms which supply equipment are also now likely to hold less stock, and are declining to purchase small cranes. While some recent positive indicators suggest a stabilization in certain mature markets, said Trellock, we remain guarded as we move into the second half of 2010. At the same time, we continue to drive the operational efficiencies, process improvements and cost reduction initiatives we implemented last year, which should provide enhanced profitability as demand strengthens across our business.