News for Immediate Release
MANITOWOC ANNOUNCES FIRST-QUARTER 2001 FINANCIAL RESULTS
First-Quarter Results in Line with Company's Revised Guidance
MANITOWOC, WI - April 17, 2001 - 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.
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Manitowoc Announces First-Quarter Results /2
"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.
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Manitowoc Announces First-Quarter Results / 3
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.
Company Contact:
Glen E. Tellock
Senior Vice President
& Chief Financial Officer
920-683-8122
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
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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 (expense) 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
========= ============
BALANCE SHEET
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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
========= ============
SEGMENT SUMMARY
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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
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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
=============== ==========
CASH FLOW SUMMARY
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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
and liabilities (3,771) (18,474)
--------------- ----------
Net cash provided by 11,416 1,112
operations
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.