Manitowoc Announces First-Quarter 2001 Financial Results

First-Quarter Results in Line with Company's Revised Guidance



Apr 17, 2001, 01:00 ET from The Manitowoc Company, Inc.

    MANITOWOC, Wis., April 17 /PRNewswire/ --
 The Manitowoc Company, Inc. (NYSE:   MTW) today reported financial results for
 the first quarter ended March 31, 2001.  Net sales increased 11.4 percent to
 $229.4 million in the first quarter of 2001, from $205.9 million for the same
 period in 2000.  Net earnings for the quarter were $9.9 million, or $.40 per
 diluted share, compared with $14.9 million, or $.57 per diluted share, in the
 first quarter of 2000.  Weighted average shares outstanding used to calculate
 diluted earnings per share for the first quarter of 2001 and the prior-year
 quarter were 24.5 million and 26.0 million, respectively.
     "Our first-quarter financial results are in line with our preliminary
 expectations that were announced on March 26," said Terry D. Growcock,
 Manitowoc's president and chief executive officer.  "As we discussed at that
 time, we had expected to see slight growth resume in the beverage industry
 during 2001.  However, a protracted weakness brought on by capital equipment
 spending constraints contributed to broad volume decreases in this business.
 In addition, product mix issues and slower ice-machine sales further affected
 Foodservice revenues and earnings.
     "Despite this short-term weakness, we are increasingly confident of our
 growth prospects for the remainder of the year.  We have undertaken
 significant expense reduction initiatives across all of our Foodservice
 operations that should enable Manitowoc to realize cost savings in the second
 half of 2001.  Also, new-product introductions during the balance of the year
 should offset some of the declines in the first quarter, regardless of the
 ongoing beverage industry concerns.
     "Prospects for our Crane segment remain solid, despite increased European
 pricing pressures for our large crawler cranes due to the strong dollar.
 Slower order-to-delivery rates in our boom-truck operation reflect the
 continued economic concerns affecting smaller contractors," added Growcock.
 "Quoting activity for our higher-capacity lift cranes continues to climb,
 driven by demand in the energy-related markets.  Although pricing pressures
 hampered our margins in the first quarter, we have expanded our leadership
 position in the worldwide market for medium- and high-capacity lift cranes.
     "The strength of our large-crane business is evidenced by the very
 positive response we received two weeks ago at BAUMA 2001, an international
 construction equipment trade fair in Germany," stated Growcock.  "The
 introduction of five major new crane products at one show is unprecedented in
 the lattice-boom crane industry and is a testament to our technological and
 manufacturing capabilities.  Including sales made at BAUMA, our overall crane
 segment backlog stood at $85 million as of April 13, 2001.
     "We continue to move forward with our planned acquisition of Potain SA,
 the tower crane subsidiary of Groupe Legris Industries in France.  The
 combination of Manitowoc and Potain would create one of the world's premier
 providers of lifting solutions for the construction industry.  We expect to
 receive the final regulatory approvals shortly, which should enable us to
 close this transaction next month.
     "In our Marine group, we are completing another active winter repair
 season," continued Growcock.  "This season included more than 20 dry dockings
 at our Sturgeon Bay and Toledo facilities, and work continues steadily on the
 hopper dredge Liberty Island.  In addition, quoting activity is the highest in
 recent memory at our Bay, Toledo, and Cleveland operations, as well as at
 Marinette Marine.  The Marinette acquisition is nearly assimilated, and we
 remain confident that Marinette will meet our accretion assumptions for the
 year.
     "Our strict fiscal management and focus on EVA(R) principles has enabled
 us to continue generating cash despite challenging market conditions.  Cash
 flow from operations was very positive in the first quarter, totaling
 $11.4 million, compared with cash from operations of $1.1 million in the first
 quarter of 2000.  During the quarter, Manitowoc generated $2.1 million in EVA
 for our shareholders.
     "Going forward, we have a number of reasons to be optimistic about our
 prospects.  While we anticipate continued softness in the beverage industry,
 new-product introductions slated for later this year should offset some of
 this weakness and enable us to boost margins closer to Manitowoc's historical
 level.  Demand for our medium- and large-capacity cranes continues to be
 strong, with added benefits expected later in the year as a result of new
 medium-capacity and specialty crane products introduced at BAUMA.  Work on the
 Liberty Island should be completed in the fourth quarter, and our Marine
 operations are vigorously pursuing new shipbuilding contracts.  We look
 forward to achieving our Vision 2002 goals, which are now in sight, and we
 remain committed to delivering superior value to our shareholders."
 
     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
 is the largest provider of ship repair, conversion, and new-construction
 services for the U.S. Great Lakes maritime industry.
 
     Any statements contained herein that are not historical facts are
 forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995, and involve risks and uncertainties.  Potential
 factors could cause actual results to differ materially from those expressed
 or implied by such statements.  These statements include, but are not limited
 to, those relating to Manitowoc's anticipated cost savings, new foodservice
 product introductions, planned acquisition of Potain, and accretion
 assumptions for the Marinette Marine acquisition.  Information on the
 potential factors that could affect the company's actual results of operations
 is included in its filings with the Securities and Exchange Commission,
 including but not limited to its Annual Report on Form 10-K for the fiscal
 year ended December 31, 2000.
 
 
                          THE MANITOWOC COMPANY, INC.
                  Unaudited Consolidated Financial Information
             For the First Quarter of Calendar Years 2001 and 2000
                     (In thousands, except per-share data)
 
     INCOME STATEMENT
                                                      QUARTER ENDED
                                                         March 31,
                                              2001                        2000
 
     Net sales                        $    229,351                $    205,853
     Cost of sales                         173,321                     150,136
       Gross profit                         56,030                      55,717
       Engineering, selling &
        administrative                      33,686                      27,072
       Amortization                          2,315                       1,902
         Operating earnings                 20,029                      26,743
     Interest expense                       (4,096)                     (2,511)
     Other income - net                       (115)                       (371)
     Earnings before taxes on income        15,818                      23,861
     Provision for taxes on income           5,948                       8,948
 
     NET EARNINGS                     $      9,870                $     14,913
 
     BASIC EARNINGS PER SHARE         $       0.41                $       0.58
 
     DILUTED EARNINGS PER SHARE       $       0.40                $       0.57
 
 
     SEGMENT SUMMARY
                                                        QUARTER ENDED
                                                          March 31,
                                              2001                        2000
 
     Net sales:
      Foodservice products            $    101,245                $     92,929
      Cranes and related products (*)       84,258                     100,770
      Marine                                43,848                      12,154
         Total                        $    229,351                    $205,853
 
     Operating earnings (loss):
      Foodservice products            $      9,541                $     12,180
      Cranes and related products           11,363                      17,333
      Marine                                 4,569                       2,377
      General corporate expense             (3,129)                     (3,245)
      Amortization                          (2,315)                     (1,902)
 
         Total                        $     20,029                $     26,743
 
 
 
     BALANCE SHEET
 
     ASSETS                                        March 31,            Dec 31
                                                       2001               2000
     Current assets:
      Cash & temporary investments              $    10,257         $   16,027
      Accounts receivable                            71,730             88,231
      Inventories                                   101,818             91,178
      Other current assets                           33,583             28,071
         Total current assets                       217,388            223,507
 
     Intangible assets                              307,516            308,751
     Other assets                                    14,581             10,332
     Property, plant & equipment - net              102,297             99,940
     TOTAL ASSETS                               $   641,782         $  642,530
 
     LIABILITIES & STOCKHOLDERS' EQUITY
     Current liabilities:
      Accounts payable & accrued expenses       $   146,124         $  144,713
      Current portion of long-term debt                 270                270
      Short-term borrowings                          68,671             81,000
      Product warranties                             12,537             13,507
         Total current liabilities                  227,602            239,490
     Long-term debt                                 140,337            137,668
     Other non-current liabilities                   32,005             31,603
     Stockholders' equity                           241,838            233,769
     TOTAL LIABILITIES &
      STOCKHOLDERS' EQUITY                      $   641,782         $  642,530
 
 
 
     CASH FLOW SUMMARY
                                                       QUARTER ENDED
                                                         March 31,
                                             2001                         2000
     Net earnings                        $  9,870                    $  14,913
     Non-cash adjustments to income         5,317                        4,673
     Changes in operating assets
        liabilities                        (3,771)                     (18,474)
     Net cash provided by operations       11,416                        1,112
 
     Business acquisitions - net                0                      (30,694)
     Capital expenditures                  (5,336)                      (4,853)
     Proceeds from sale of fixed assets        22                           22
     Treasury stock purchases                   0                      (22,638)
     Dividends paid                        (1,791)                      (1,957)
     Proceeds (payments) on long-term
        borrowings-net                      2,669                          (11)
     Proceeds (payments) from
        revolver borrowings-net           (12,329)                      67,201
     Other changes to stockholders'
        equity                               (339)                           0
     Effect of exchange rate changes on cash  (82)                         (10)
     Net increase (decrease) in cash
        & temporary investments         ($  5,770)                   $   8,172
 
     (*)  Prior periods restated to reflect the required adoption of EITF 99-19
          relating to the reporting of certain crane segment revenues gross
          versus net.  This does not result in a change in net income or
          earnings per share.
 
 

SOURCE The Manitowoc Company, Inc.
    MANITOWOC, Wis., April 17 /PRNewswire/ --
 The Manitowoc Company, Inc. (NYSE:   MTW) today reported financial results for
 the first quarter ended March 31, 2001.  Net sales increased 11.4 percent to
 $229.4 million in the first quarter of 2001, from $205.9 million for the same
 period in 2000.  Net earnings for the quarter were $9.9 million, or $.40 per
 diluted share, compared with $14.9 million, or $.57 per diluted share, in the
 first quarter of 2000.  Weighted average shares outstanding used to calculate
 diluted earnings per share for the first quarter of 2001 and the prior-year
 quarter were 24.5 million and 26.0 million, respectively.
     "Our first-quarter financial results are in line with our preliminary
 expectations that were announced on March 26," said Terry D. Growcock,
 Manitowoc's president and chief executive officer.  "As we discussed at that
 time, we had expected to see slight growth resume in the beverage industry
 during 2001.  However, a protracted weakness brought on by capital equipment
 spending constraints contributed to broad volume decreases in this business.
 In addition, product mix issues and slower ice-machine sales further affected
 Foodservice revenues and earnings.
     "Despite this short-term weakness, we are increasingly confident of our
 growth prospects for the remainder of the year.  We have undertaken
 significant expense reduction initiatives across all of our Foodservice
 operations that should enable Manitowoc to realize cost savings in the second
 half of 2001.  Also, new-product introductions during the balance of the year
 should offset some of the declines in the first quarter, regardless of the
 ongoing beverage industry concerns.
     "Prospects for our Crane segment remain solid, despite increased European
 pricing pressures for our large crawler cranes due to the strong dollar.
 Slower order-to-delivery rates in our boom-truck operation reflect the
 continued economic concerns affecting smaller contractors," added Growcock.
 "Quoting activity for our higher-capacity lift cranes continues to climb,
 driven by demand in the energy-related markets.  Although pricing pressures
 hampered our margins in the first quarter, we have expanded our leadership
 position in the worldwide market for medium- and high-capacity lift cranes.
     "The strength of our large-crane business is evidenced by the very
 positive response we received two weeks ago at BAUMA 2001, an international
 construction equipment trade fair in Germany," stated Growcock.  "The
 introduction of five major new crane products at one show is unprecedented in
 the lattice-boom crane industry and is a testament to our technological and
 manufacturing capabilities.  Including sales made at BAUMA, our overall crane
 segment backlog stood at $85 million as of April 13, 2001.
     "We continue to move forward with our planned acquisition of Potain SA,
 the tower crane subsidiary of Groupe Legris Industries in France.  The
 combination of Manitowoc and Potain would create one of the world's premier
 providers of lifting solutions for the construction industry.  We expect to
 receive the final regulatory approvals shortly, which should enable us to
 close this transaction next month.
     "In our Marine group, we are completing another active winter repair
 season," continued Growcock.  "This season included more than 20 dry dockings
 at our Sturgeon Bay and Toledo facilities, and work continues steadily on the
 hopper dredge Liberty Island.  In addition, quoting activity is the highest in
 recent memory at our Bay, Toledo, and Cleveland operations, as well as at
 Marinette Marine.  The Marinette acquisition is nearly assimilated, and we
 remain confident that Marinette will meet our accretion assumptions for the
 year.
     "Our strict fiscal management and focus on EVA(R) principles has enabled
 us to continue generating cash despite challenging market conditions.  Cash
 flow from operations was very positive in the first quarter, totaling
 $11.4 million, compared with cash from operations of $1.1 million in the first
 quarter of 2000.  During the quarter, Manitowoc generated $2.1 million in EVA
 for our shareholders.
     "Going forward, we have a number of reasons to be optimistic about our
 prospects.  While we anticipate continued softness in the beverage industry,
 new-product introductions slated for later this year should offset some of
 this weakness and enable us to boost margins closer to Manitowoc's historical
 level.  Demand for our medium- and large-capacity cranes continues to be
 strong, with added benefits expected later in the year as a result of new
 medium-capacity and specialty crane products introduced at BAUMA.  Work on the
 Liberty Island should be completed in the fourth quarter, and our Marine
 operations are vigorously pursuing new shipbuilding contracts.  We look
 forward to achieving our Vision 2002 goals, which are now in sight, and we
 remain committed to delivering superior value to our shareholders."
 
     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
 is the largest provider of ship repair, conversion, and new-construction
 services for the U.S. Great Lakes maritime industry.
 
     Any statements contained herein that are not historical facts are
 forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995, and involve risks and uncertainties.  Potential
 factors could cause actual results to differ materially from those expressed
 or implied by such statements.  These statements include, but are not limited
 to, those relating to Manitowoc's anticipated cost savings, new foodservice
 product introductions, planned acquisition of Potain, and accretion
 assumptions for the Marinette Marine acquisition.  Information on the
 potential factors that could affect the company's actual results of operations
 is included in its filings with the Securities and Exchange Commission,
 including but not limited to its Annual Report on Form 10-K for the fiscal
 year ended December 31, 2000.
 
 
                          THE MANITOWOC COMPANY, INC.
                  Unaudited Consolidated Financial Information
             For the First Quarter of Calendar Years 2001 and 2000
                     (In thousands, except per-share data)
 
     INCOME STATEMENT
                                                      QUARTER ENDED
                                                         March 31,
                                              2001                        2000
 
     Net sales                        $    229,351                $    205,853
     Cost of sales                         173,321                     150,136
       Gross profit                         56,030                      55,717
       Engineering, selling &
        administrative                      33,686                      27,072
       Amortization                          2,315                       1,902
         Operating earnings                 20,029                      26,743
     Interest expense                       (4,096)                     (2,511)
     Other income - net                       (115)                       (371)
     Earnings before taxes on income        15,818                      23,861
     Provision for taxes on income           5,948                       8,948
 
     NET EARNINGS                     $      9,870                $     14,913
 
     BASIC EARNINGS PER SHARE         $       0.41                $       0.58
 
     DILUTED EARNINGS PER SHARE       $       0.40                $       0.57
 
 
     SEGMENT SUMMARY
                                                        QUARTER ENDED
                                                          March 31,
                                              2001                        2000
 
     Net sales:
      Foodservice products            $    101,245                $     92,929
      Cranes and related products (*)       84,258                     100,770
      Marine                                43,848                      12,154
         Total                        $    229,351                    $205,853
 
     Operating earnings (loss):
      Foodservice products            $      9,541                $     12,180
      Cranes and related products           11,363                      17,333
      Marine                                 4,569                       2,377
      General corporate expense             (3,129)                     (3,245)
      Amortization                          (2,315)                     (1,902)
 
         Total                        $     20,029                $     26,743
 
 
 
     BALANCE SHEET
 
     ASSETS                                        March 31,            Dec 31
                                                       2001               2000
     Current assets:
      Cash & temporary investments              $    10,257         $   16,027
      Accounts receivable                            71,730             88,231
      Inventories                                   101,818             91,178
      Other current assets                           33,583             28,071
         Total current assets                       217,388            223,507
 
     Intangible assets                              307,516            308,751
     Other assets                                    14,581             10,332
     Property, plant & equipment - net              102,297             99,940
     TOTAL ASSETS                               $   641,782         $  642,530
 
     LIABILITIES & STOCKHOLDERS' EQUITY
     Current liabilities:
      Accounts payable & accrued expenses       $   146,124         $  144,713
      Current portion of long-term debt                 270                270
      Short-term borrowings                          68,671             81,000
      Product warranties                             12,537             13,507
         Total current liabilities                  227,602            239,490
     Long-term debt                                 140,337            137,668
     Other non-current liabilities                   32,005             31,603
     Stockholders' equity                           241,838            233,769
     TOTAL LIABILITIES &
      STOCKHOLDERS' EQUITY                      $   641,782         $  642,530
 
 
 
     CASH FLOW SUMMARY
                                                       QUARTER ENDED
                                                         March 31,
                                             2001                         2000
     Net earnings                        $  9,870                    $  14,913
     Non-cash adjustments to income         5,317                        4,673
     Changes in operating assets
        liabilities                        (3,771)                     (18,474)
     Net cash provided by operations       11,416                        1,112
 
     Business acquisitions - net                0                      (30,694)
     Capital expenditures                  (5,336)                      (4,853)
     Proceeds from sale of fixed assets        22                           22
     Treasury stock purchases                   0                      (22,638)
     Dividends paid                        (1,791)                      (1,957)
     Proceeds (payments) on long-term
        borrowings-net                      2,669                          (11)
     Proceeds (payments) from
        revolver borrowings-net           (12,329)                      67,201
     Other changes to stockholders'
        equity                               (339)                           0
     Effect of exchange rate changes on cash  (82)                         (10)
     Net increase (decrease) in cash
        & temporary investments         ($  5,770)                   $   8,172
 
     (*)  Prior periods restated to reflect the required adoption of EITF 99-19
          relating to the reporting of certain crane segment revenues gross
          versus net.  This does not result in a change in net income or
          earnings per share.
 
 SOURCE  The Manitowoc Company, Inc.