Manitowoc Sets Company Record in First-Quarter Sales and Earnings

May 1, 2006 — The Manitowoc Co., Manitowoc, Wis., reported record sales and earnings during the first quarter 2006, which ended March 31. Net sales increased 24% to $633 million from $510.3 million during the first quarter of 2005. Reported earnings per diluted share were $0.48 for the 2006 quarter, compared to $0.11 for the 2005 quarter.

 

Excluding the effects of discontinued operations, the settlement of a post-acquisition claim during the 2006 quarter, and the effect of discontinued operations and costs of early debt extinguishment during the 2005 quarter, first-quarter earnings per diluted share from continuing operations increased 147% to $0.47 in 2006, up from $0.19 for the same period in 2005. All per-share amounts reflect the 2006 two-for-one stock split that was declared February 24 and distributed April 10.

 

First-quarter 2006 net sales in the crane segment increased 33% to $477.5 million, from $358.0 million in the first quarter of 2005. Operating earnings increased 151% to $51.2 million, from $20.4 million last year. The strength of the crane segment's end markets is reflected in its backlog, which totaled $987 million, an increase of 14 percent from December 31, 2005, and up 85 percent from March 31, 2005.

 

“We are seeing the dividends from our investments in a global crane strategy,” said Terry Growcock, chairman and chief executive officer. “Operating margins have increased from 5.7% to 10.7%, driven primarily by operating leverage from increased volume and improved product mix in all of our geographic markets. The federal highway and energy bills passed last year, along with a robust industrial construction market, are keeping U.S. fleet rental and utilization rates at high levels.”

 

Growcock added that favorable demand fundamentals, primarily in the global crane market, have prompted the company to increase 2006 earnings per share guidance for a second time this year. “The company now anticipates that 2006 earnings per share, on a post-split basis, will be in a range of $2.15 to $2.25 per share,” Growcock said. “The revised earnings guidance incorporates a 2006 global effective tax rate in the low 30 percent range. This reflects increased operating income from manufacturing regions with higher tax rates. With the announced redemption of our 10.375% Senior Subordinated Notes in the second quarter, we project a year-end debt-to-cap well below 40%, with interest expense tracking in the low $40 million range due to lower anticipated outstanding average debt balances. Early debt extinguishment expenses will be approximately 15 cents per share, so full-year GAAP earnings per share will be in a $2.00 to $2.10 range.”