The Manitowoc Company, Inc. (MTW) 8 Nov 192019 Q3 Earnings call transcript

Company Profile

Participants

Ion Warner	VP, Marketing and IR
Barry Pennypacker	President and CEO
David Antoniuk	SVP and CFO
Seth Weber	RBC Capital Markets
Mig Dobre	Baird
Ben Burud	Goldman Sachs
Tom Simonitsch	J.P. Morgan
Steven Fisher	UBS
Jamie Cook	Credit Suisse
Stephen Volkmann	Jefferies
Mike Shlisky	Dougherty & Company
Lawrence DeMaria	William Blair

Call transcript

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Operator

Good day, everyone. And welcome to The Manitowoc Third Quarter Earnings Conference Call. Today’s call is being recorded.

And at this time, for opening remarks and introductions, I would like to turn the call over to Ion Warner, Vice President, Marketing and Investor Relations. Please go ahead.

Ion Warner

morning, good and you, everyone. Thank evening’s The And the outlook, call last review conference third welcome as quarter in business to Company’s full-year XXXX to XXXX Manitowoc performance release. press outlined and

David are Barry Chief and Officer; President With me Antoniuk, Pennypacker, Vice today Senior Officer. Chief President Executive and Financial and

slide which be our & found under webcast website the Investor Today’s Events presentation, includes in a of can Relations section Presentations.

that would you questions and your answers our like reserve to and will I request to ensure one return time for to opportunity everyone We and has questions. to limit their queue prepared questions after follow-up, an remarks. a ask to the

Please to two. turn slide

Safe Before the statement in for we note material begin, our Harbor this please provided call.

in of current Reform During business. Private the and today’s its call, XXXX, its made company’s the Securities factors Act forward-looking assessment on of other based markets defined as affect are Litigation that statements,

any the any or differ statement, information, However, others a filings. update projections of as more latest undertake Company Company’s from actual The any revise events, or new due to could result whether or other SEC Manitowoc implied future does circumstances. results factors in of or the not one actual obligation materially described forward-looking among to

I And call now will with over that the turn to Barry.

Barry Pennypacker

welcome, and everyone. Ion, Thanks,

compared well, representing $XX improvement. was as strong consecutive significant of was generation Free improvement operational quarter, which quarter We EBITDA, revenue, an margin adjusted of adjusted the once $XX cash year-over-year This Manitowoc flow sound on delivered generated to a million flat $XX million using performance. by EBITDA of Way. increase again driven strong principles XXth year. marks We solid last of a the The million primarily of

Manitowoc say by and committed say also The are last of tightened increased to I despite of work revenue. delivered couldn't be we hard goal. proud. I’m aware, guidance $XX on dedication more and to I employees happy to happy quarter, our inventory our are XXXX you and that by to am earnings track the anticipated this year-end. As achieve these results, And million lower range our reducing we

focus quarter, Last broader markets in have resulting disputes macroeconomic now, we and factors. And the discussed were softness orders. conditions These in other in trade to third short persisted level. let's year a which due orders a of quarter, global prior on

due The over in carried year strong decline part in our Days. Americas from bookings the led the new to overall product introductions Crane of prior that

was product broad-based year-over-year Our all lines. across decline

in signs continued product first particular the not towers America into has For time concentrated was of In in Germany. the within EURAF, line showing a dramatic, our while, long October nearly one life, which bookings. in was is South and as reduction

Spain, and On Italy the plus Portugal side, showed Benelux, growth.

In Pac well. our business region MEAP, the Asia performed very of

area be East continues However, for improvement. an to the Middle focus of

indicate, in we As environment. are a slowing our orders

quarter, are business positive quickly. production react demand with as the can because and process you began a negative are adequately or in current During we levels to market conditions aware, the of to very aligning turn this prepared our

market expectations. current few feedback ad about fleet talking a all that the customers of are it remains to key all discussed Dealer as been Market factors of still with very inventory level nauseam. expansion but our is markets utilization across equipment, from aligned due properly key have high

financial over as guidance. call our updated provide With results walk well as on more David the color to our turn I'll that, to detail in us through full-year

David Antoniuk

everyone. good and Barry, morning, Thanks,

Let's move to slide three.

customers’ sales Americas perform for basis, segment primarily higher expansion $XXX or of year-over-year, net as year-over-year the continued on well sales million sales X% a increased rental for increase currency-adjusted $XXX shipments our essentially year-over-year. for driven Net quarter, to fleets. million, an were million quarter the of the XX% flat by were $X The

a on segment neutral million X% due In currency sales a and net EURAF The East. reduced construction on This declined to declined decline the neutral to Middle reduced basis. market. commercial to currency MEAP the primarily was primarily to sales due shipments $XX shipments X%, net basis,

Our reductions points the we within margins contributions operating was execution realization expanded control the and favorable with excellent, as X.X% by XXX to our adjusted price from items on business. strong basis throughout cost

$XX the and adjusted the in essentially on expense million $XX The year, compared in XX% debt quarter quarter. rate interest million compared in in overall EBITDA prior million borrowings Interest was totaled the Our the quarter XX% prior in the effective $X $XX quarter in revenue. increase to refinancing versus of the was year. prior flat lower the X%, million, a our to average the of reflecting benefit the year, in

$X.XX or $XX million the compared third income compared per million million net net per million or quarter was share to per prior $X.XX as $XX or year. the diluted the to diluted or share, an improvement Adjusted for in share, $X.XX of share, GAAP diluted of $X.XX per quarter $XX XXXX. income was diluted $XX

provided of last of operating million, by million was by improved flows working capital our activities in a This on adjusted activities $X GAAP from year. flows basis $XX Cash cash management to were the operating driven quarter. compared mainly

ABL times. XXth, The to adjusted a of was September ratio was As X.X no healthy with $XXX borrowings liquidity net total outstanding our EBITDA million revolver. our on debt

provides our us capacity on debt execute ratio low while liquidity strategies with operational ABL growth to ample coupled Our requirements. tax net meeting with a ongoing

year-over-year due a to a production affect aftermarket lower guidance of lower adversely This XXXX of X%; Turning revenue to notable normal guidance adjusted our highlight guidance. our to items, our represents million, four, EBITDA have million updated which which we increased refer to which seasonality, results business, used flat of the to sales to to decreased will of year-over-year XX%. represents assumes $XXX and X,XXX To million, equipment, from percentage and most X,XXX fourth increase hours. higher approximately guidance the up quarter million $XXX slide full-year XX% please change to approximately a

call I Barry. turn that, will the With now back to

Barry Pennypacker

Thank you, David.

that of conditions market mindful we ahead, exist. uncertain the look we As are

deliver So, productivity introduced the controls new innovation cost these product rest to processes, these the our and are Show ensuring ConExpo and next I pleased and a our productive of with the will to our is am position we that Recently, in times, drive commitment of products in confident customers. well-positioned Trade pipeline our March. continue steadfast. making returns came Five incorporate innovation completed away customer. to all at new will be and navigate remains Vegas new innovation. introduction cranes of progress and very developing shareholders review that in initiatives we investing uncertain velocity Las The us our positive products to future of of while to through highly assured, strategy growth businesses to voice products, our

our have past of made. are batch our number talked lean productivity has remains have per the Last investment of we the The investments are focused increase produced with the week, about to of increase in on manpower. improvement improvements. I'm that As on in the less team significant progress velocity continuous cranes our resulted days shift Niella, very proud at throughput. substantial delivering in witnessed they we and in continue improvement, production. I Gone Italy journey, factory, The

evolve. to Our journey continues

the deliver I'd about shareholders Manitowoc ability like remain type returns cycle. now, very to throughout our reposition continue our to that superior activity. optimistic the to to of And M&A our comment can as We on company

balance organic inorganic is Our healthy. growth between and

met. for none remains are while being focused internal we that disciplined criteria pipeline are add our stringent to acquisitions, but we're our on revenue, to robust growth imminent, in our While ensuring remain extremely our delivering approach, continues recurring

a To crane delivered productivity, Throughout actions underscore response business slowing execution, cycle, operating summarize, remain we solid on proactive cycle, positive and In in strong our our the we third the how focused manage and cost in control, to quarter, results actions. including cost we investment reduction driving efficiency cash flow. business. productivity

to With and the our place, the returns our in works throughout foundation shareholders continue cycle. confident are provide to strategy we stronger will

With that, I'll it operator, back to you. turn

You for up can the open questions. line

Operator

Seth Markets. of RBC Thank you. first go We from can the Please now [Operator Weber instructions] Capital ahead. question take

Seth Weber

talking think expand to But, year a next potentially know digits? the in high are can Thanks. quarter. can level, to to on job you scenario margins talk a just, revenues yet. down next wanted year you here whether in double Nice I I you're from where margins ask, continue about not the

Barry Pennypacker

I always that’s lot on depends goal. our A it mix. of think Seth,

We to point have breakeven market the done we what where our aligning I a the fantastic would job of believe of be. bottom call could

of SG&A. resolute our We market we have our opportunity to from to margins manage tries that happen expand what realize But, continual to you to irregardless on perspective. should a also continuing remain us

Seth Weber

were in can the expectations versus here the And quarter third Was mix Thanks. for quarter quarter? the just you? helpful in there in particularly where you that to kind of we was anything fourth maybe, to your talk third production the in

Barry Pennypacker

historically much From been think quarter. the in we third a where were mix I standpoint, pretty we've

mobile We head have in some much the to third where some was regards. we mix pretty towers Americas which in its tends it rear expected that quarter, be. helps to And us

from been. say, from would we’re historically pretty a Americas. we I mix So, much a maybe little Otherwise, perspective, the helpful have where

as you're our And and yes, of to quarter production As we fourth as anticipating course, rates in the far is demand that with began concerned, adjust we quarter monitor continue be. to what will third indicate. the order aligning our that

Seth Weber

then, a maybe just quick follow-up Dave. thanks. And for Okay,

I market out the you You of part seeing know, the on commented crane just that is track. cranes. on market? crane seeing? Can the inventory in Thanks. in used and about reduction Can there general you're you're what being frame just you used what talk reduction used

David Antoniuk

stable We anticipate changes any to have anticipate in now. I generally market that. So, don't used guidance fairly think prices and crane been any right changes our speaking, the doesn’t

goes as steady it’s she So, market. that within

Operator

from Baird. ahead. comes Mig of go question next Please Dobre Our

Mig Dobre

think flow your for Dave. updated cash about guidance? context of do have I How quick a also you free in the question

David Antoniuk

we're think, $XX looking generating generally I QX. speaking, So, million Mig, at in

Mig Dobre

of the Okay. crosscurrents the is a of normally see of also perspective, And there bit bit quarter, I'm market. in but sequentially, know order’s I wondering, fourth little a you a from an seasonality a uptick in lot That’s helpful. then, there

you you for know, expectations little bit? maybe or we us? expect Should the a So, I maybe don't set can here level seasonality normal are thinking,

Barry Pennypacker

I suspect don't I sequential Well, weakness. think,

In in October, fact, with what line we were prior have October years. disclosed orders our would and expected from we

company. being remarks October uptick a last four I there substantial here, the held. we in were And, pleased a some been the the to revenue the regions in was had I'm there. months, slight I South seeing America fact of virtually we're -- uptick. when But, nonexistent. that kind was a been for mentioned some I've mean, prepared it's see So, that of since of of in portion very this couple my years where, And time of last

us. So, that's very for positive

lot are are see the our a of So, there still customers and in mode. I think, wait

the of Washington, think course mentioned As equipment but month temperature is talked they're last number of what I've them the a continuing I depends a on DC. about working, it of of out to out that to investment, their over the is lot

Mig Dobre

comments, just to or October in where Barry, you line clarify on am your I October were was you misunderstanding? saying basically Okay. were XXXX, in order-wise that

Barry Pennypacker

That's Correct. correct.

Mig Dobre

of very that ‘XX, I was mean, quarter a fourth a intake order quarter. the nice

at that kind a mean, time. be I would theory of least So, in tough

So, that's good news...

Barry Pennypacker

doing very I But, things. as remain tough said, up see right all the we’ll got And comp. It's XX. we're it ends at December I encouraged where that

Mig Dobre

Okay. for Last question me.

orders? I that for about margin. think an I of there might ConExpo, order over the the we to you about show there this potential on follow with through trade that deal introduction is big that terms we're to thinking associated we product guys. expense have should know How -- is new in also -- have a As And impact that put

modeling So, in out you us you can that? can help

Barry Pennypacker

are Days been don't line. think give particularly excitement as over of consistent. ConExpo product this Crane usually too SG&A ago Yes. in will with But, want there much That's many be in pretty I is. because we're the there's a The exceed will year a that that year like well to introducing at our now. away. ConExpo has margin at to ago evolution -- as products impact going I five I our these cranes new be million. think hit what products It's fact $X year, continued new

Operator

you. Sachs. our go Please ahead. Thank to And of move next, Jerry I Revich Goldman

Ben Burud

Hi. everyone. Good Burud This Jerry. morning, is Ben for on

Is range? $XX baked how Can ranges be we we're EBITDA to XQ apply when guidance to million EBITDA of? us you implies And there million. that mentioned arrived what XQ there but EBITDA, million. or number implied $XX through some earlier say your let’s seasonality, XQ $XX about related you normal you modeling around we Your step are timing XQ that items into from conservatism general that made at the aware should

David Antoniuk

I much the used as There manufacturing going to going the both business, percentage. typical a mobile are percentage, slowdown points. to at we going there equipment in mean, couple aftermarket of to have be higher dollars we be have we in equipment. think, sales, where which and hours Yes. I sold within manufacturing we lower in a articulated the than facilities, -- going lower is And than the a is key did be to levels facilities particularly There in less QX. are is

what understand So, items your are.

I think at of midpoint somewhere the generally to speaking that we us we're EBITDA. going and where looked million about gives $XX be,

So, numbers there. the we pretty attaining we good, out feel put

are. quarter-to-quarter, as we results impact in is had crane other mix, -- Because the sale indicated, we the thing We the don't that few out really quarterly sales from Ben, quarter. a with a or Barry there those crane good reason what give right? I'll quarter's guidance, is some that move Americas

plays that well. into So, as

look as specific we result versus guidance our at at a a year basis. on attaining it So, looking quarter-by-quarter

Ben Burud

Got we think modeling to in order point, that cadences into pushed And XQ March, accurately, being months based it. just about are out we're is XQ, on that on there it next sure chance orders ConExpo from any when make seasonality? the with six

Barry Pennypacker

love with absolutely, mean, the and very because Customers a love the to I’ve their order champagne to -- Yes, transparent to glass I this. love quite for booth, year. and frankly celebrate come to hand your of shake been about

to dealer will large if fact in place, are some hand to orders absolutely, them bring would So, that in they I are our planning network ConExpo. expect of there that

Ben Burud

across has supporting pricing about the that guys in aftermarket. idea there's in been in Got great on And it. quarters, pricing any recent what's strength markets? regional just improvement? you a side for different finally, us And tailwind you difference particularly if aftermarket Can an been your give

Barry Pennypacker

we I I a in mean, Yes. aid mean, program sophisticated always to to strong. us use our that. pricing aftermarket analyze is very aftermarket

already I that. some of with recent forward. to really is the We've is happy very the going of positive us industry consolidation effects of seen in in which helping I'm So, happened that's also a some that pricing. think for the that, Europe, stabilize

Ben Burud

Awesome. Thank you.

Barry Pennypacker

welcome. very You're

Operator

Duignan to next from Please our it Morgan. you. move Thank now We'll J.P. Ann go question, comes from ahead.

Tom Simonitsch

is morning. Good on for Tom This Simonitsch Ann.

Barry Pennypacker

Hi, Tom. Yes.

Tom Simonitsch

Hi.

incremental this country expect will of sourcing, on up how that your price On do beyond? cost and following much Just of the the XXXX initiative question versus there. you low-cost realized year benefit be

Barry Pennypacker

XXXX and in beyond. more be will It

Tom Simonitsch

Can And then, some previously looking I orders, particular? those at noted slowdown Okay. in as just European on think weak more France highlighted you a just provide you spot. in color Germany, a you markets and

Barry Pennypacker

Yes.

think, that is some than starting France. vacations historically case. little right longer and France just strength much But, been hope at performing the lower We exhibited from vacations of what seasonal than extending I is doing -- expectations. that okay our Germany has and

to is we’re forward. by have return something that surprising. remarks, to we prepared as starting fact but very Spain heard appreciated just and in what's and growth, us, in continue interesting to much somewhat the to countries is you that And monitor Portugal going If like are Italy to is go which

Tom Simonitsch

lastly the the for inventory reduction, three initiatives. target? quarter, maybe quantify just the $XX those on last contribution you you And detailed towards three of just Could initiatives those million me

David Antoniuk

inventory by and look at $XX reduced balance we sheet, I when we think, where today we the generally are speaking, million.

that weekly. to The plans We get still at by been another the quarter historically in reduced our team, team And in have fourth levels developed place million have we’ve $XX inventory meets inventory. the significantly.

to feel the We we good inventory attain And for QX. quite our reduction target that have reduction. in identified ability areas very about honestly,

Operator

of from ahead. Steven go Fisher move And Please UBS. next our to question, comes I

Steven Fisher

been a see flow, But, really that talk stronger know what positive On that it. what quarter, without the if that about don’t have but reverse. I it was nice cash million is to could headwind. could potential even $XX little and bit a payable you drove the missed I

Barry Pennypacker

a That’s sure. Yes, question. good

and when what is in a the with have see associated a payables at So, organization. that's items reduction generally I that’s to I our speaking, overall in within seasonality, number you think, will Europe. due we QX, And of look

Germany As you we in France shutdowns there. know, plant have and

main that in lower materially because Europe resulted there in we overall I two be what we would payable with up think, brought factors. then bringing U.S. in particular ended we in quarter then over which in a less September. really is July, are which one And ended the is materials, shutdown payables up Number had extended quarter France, in level. we doing

that those So, paid as our decline bills well. in in a vendors’ were And with terms. accordance resulted

would the It’s to expect in watch days that at be days. the to I are we normal back something look quarter. And that we closely, fourth our going

Steven Fisher

your combination and in is QX, for million of payables? a of benefit $XX embedded So, inventory that flow both from cash

David Antoniuk

That is correct.

Steven Fisher

terms And the in on of can business That seeing would sort months, et the type non-res you industrial then, orders last the maybe and few little market, just thanks. North by of end bit be Okay, helpful. American color in a infrastructure production the Thanks. between give over cetera? and flow market what you’re and more

Barry Pennypacker

Yes. non-res has strong The I in mean, a we're the very, albeit lower West on still Coast. particularly tower Coast seeing the very particular. West in business rate, been expansion, at

AT say say that we our lift being we're that it’s area, XXX-ton are little definitely to decline the that's introduced North particular U.S. I a that particular was area think saw wellhead the end the production? I area. XXX% in also see would with seeing nice That's one a RTs the there at If a pause third somewhat infrastructure. America of from I'd in our that here We're our of Continue in quarter, into manufactured up see to infrastructure crane but will out state being at So, -- continuing reversing positioned introduction in in with there, where the itself. bills in crawler

Operator

question Thank Please of from Credit now go Suisse. you. which Cook ahead. next Jamie our We’ll move comes to

Jamie Cook

Most of for my just Barry, now period I you’ve M&A and guess, of questions some have been talking been on answered. off about But time.

know color multiple we to of landscape, nine can the become and opportunity an softer next doing on the to guess, how in sort given are six I So, sort just I are broadly give is little more this you some attractive, are you markets industrial like across a see, months? to the close of could starting something,

Barry Pennypacker

I about coming, the opinion, are I in my is to contraction would an People multiple that into the back say right make consider what realm in for acquisitions nature. on would money. observation us your the of opportunity accretive

nine We our with credit I agreement, great if conversations very doing absolute don't think and amount to And I be have of would our completed. that made a acquisition an progress the honest, say I the would perfectly number work next we limitations that in have months pipeline. but in we're we have in of surprised further be

Jamie Cook

sort I of And the financial there. I the have But, one crane those or industrial crisis, guess, of and that depressed understand fairly equipment’s I of been Okay. then, doom only guess. been the market been markets sort those has out crane of one the cycle’s remained gloom since that

resolved, think And happened? so, sort that got assuming that And something going about the think we you as there? trade Thank is war structural recovery you on is you. there of of how pace would China

Barry Pennypacker

good very question. Yes. a That's

our through prior XXXX look which I XXXX, here. me little us the give background And the XX% revenue Manitowoc, comes revenue overall, averaged the that high the from If $X.X you XXXX revenue, been and to years have if out, it year, and XXXX of let a the at If took standalone out, becoming crane year on is low XXXX all a a I would implied fact, guidance billion, average, business billion. reduction. crane year In from I to at $X.XXX for with company. roughly average I just those

much come time, the in mentioned, look when to higher. pinpoint, the at got and Now, years you it’s of I fruition, because that back could XX% I has point that's reduction the to at in activity some just economy, that amount to wish compared I

would -- at exactly finger I that in on point simple time, between core you back in point wish, that do in over could the based what a going billion mean the wish on is. to $X see So, X.X incremental us, the my structure I get are where and to our the math put to $X business. And average done and cost Jamie, all days could revenue can we've billion, some that very We're of what I from work when incrementals to standpoint.

than at at We profiled completely company revenue, are a $X $X.X average in are we billion. different billion

this when to type revenue. is, day the but know don't that is, awaiting that everyone opportunity potential anxiously I demonstrate I looking with certainly So, Company's and forward what to am to of

Jamie Cook

Okay.

Barry Pennypacker

hope question. that I answers your

Jamie Cook

I color. does. that Yes, you. appreciate the Thank

Barry Pennypacker

welcome. You're

Operator

you. Thanks

our from now next Stephen go take Please Jefferies. will Volkmann We question ahead. of

Stephen Volkmann

also And guys. morning, positive your that I'll to of my competition done the happening I'm will around is market? has And and some aggressiveness pricing. of to to of obviously And to margin performance or just harder relative glime come price pricing being broader Dave, any around as something some Good in dynamic it curious the relative I of Hi. And of kind in anything well. been have you been as competitors, kind leave by, just think, is there there. in fact by. harder Most change quarter. commentary the come the with if competitive there pricing are But, getting orders you said on then, the of have sort I ownership or

Barry Pennypacker

currently. I'm from broader can then start and in that off specifics. say the will little pleased discipline with me of I amount get the the the Let of that market more into David very bit exists perspective, market

of that. the I place earlier, has reason see that's consolidation taken And I doesn't continue future. helped any don't I As that into think the said some why

what the there's from would of the pause say, So, I manufacturers in would pricing call, the rates, I have though disciplined been in approach. bit perspective, even a a order major

color. for it turn I’ll David, over more to you And

David Antoniuk

Yes.

think areas, when say talked of we’ve some at that, increases, what have what that's throughout been you are better that at and price We’ve Certain of area. I competitors historically low look that that the different others. the within areas is have recently particular all levels pricing Steve, seen areas obviously seen than So, I’ll and bit well. actions harder, South the we the for industry. bit taken as And most the America goes East, I'd been she think some we’ve the harder say, about actions of for it’s Americas as But, pricing The good a for there. that's the now. that Middle part, right And have sticking. obviously steady

Stephen Volkmann

Great. That's helpful. I appreciate. Thanks.

David Antoniuk

welcome. You're

Operator

question go Our comes Shlisky Dougherty of next Mike ahead. from Company. & Please

Mike Shlisky

earlier So, to wanted up business follow question to the then. your did you answer to I XXXX, Jamie's to and about average prior since

you I of that think key so, decade or ‘XX had at kind portion in lowest much to of spinoff, the -- categories. in and of started point the period of share market share you since prior and kind for good higher you’re the a certain

years. X the So, be to back that over sounds billion couple like is, improvement share of the my mean, might I some of part question ramp it next

any could So, heavier categories, far as you give how for us you so will? key has in this share in your if year comments certain trended to perhaps

Barry Pennypacker

invested In returned historical areas highs. our share where have technology, to has we in

Mike Shlisky

In every category? single

Barry Pennypacker

it’s points, new how tell points. of we a basis the is lost, there even we of experience, points, lot have where you but I say take product going basis many development, not claims truck can’t to bps our if because it’s areas business dedicated for In percentage but I’m

new new which on invested We’re we’ll to be will in TMSXXX, which back that because a the highs carry the carried historical six TMSXXXX, in introducing the next months. to TMS we on

in have different only perspective than aftermarket much when we November XXXX, a we but standpoint, a from technology of from in absolutely here overall from standpoint, So, historical from Not overall and overall XXXX. an -- where of standpoint, your at response competitive correct. company is today, this a were are we standpoint. share But a sitting market January

in draw to XX% a my is less. that conclusion degradation that due opinion, That market share period So, the false. is over of revenue you cannot,

Mike Shlisky

efforts wanted more doing. I go is hear. also tell about carrying think? there year to yet ask, good gone really this to is whether Can it on wasn’t That that’s to you as to been you the parts the much Okay. us how crane discussed XXXX in and call you’ve

Barry Pennypacker

I continual Mike, Yes. process. that’s think a

time make continue parts quicker fill We rates strides at to overall response business. and of looking then when our profitability

deliver I’d with And that outcome. that very the believe same. to is we we're more say So, XXXX going pleased XXXX the

Operator

of Our question Baird. go ahead. comes Mig from next Please Dobre

Mig Dobre

Thank taking you a quick thinking backlog that the you're Hey. levels minimal proper need I'm backlog. of order have for follow-up. I production to on you be my do question how about point? in orders is erode amount go essentially production don't progress, there backlog to certain you on planning, And make particular how mind -- depending a past that -- able to wondering at don't where in sure you have to the you're adjusting you

David Antoniuk

today, at question. we in you at look $XXX million this are time. great when I Mig, at a obviously, it's our backlog So, mean, point

orders when see year-end $XXX point, generally and we to wait at million. QX low I how that say our when going was we're come. think, look at XXXX, I you were our

You idea revenues, where our line to kind going be. top our revenues of an have

near ability being react quickly anywhere obviously, low. anticipate orders in the the we don't continues, trend If conversely. as if up is we need. to we as we there, can in ramp pickup But So, react XXXX have there and the

we So, whether the levers in sense down go to regard. that pull that we up I think, or good have it's in

Mig Dobre

revenues year-to-date see have been ran look, orders. But, shakes your stating the and has backlog wise. we’ll well are your where the order down I Right. fourth coming obvious, of out mean, ahead quarter exactly

close thinking we you're in So, to providing orders to is somewhere But, happened guidance. say XXXX were, revenues XX up end should being that not what's are basically where that XXXX probably be backlog? it fair to given going to

David Antoniuk

fourth we I assumption until willing to the in that I'm that what think a quarter. make. again, that not But an make see statement, could one as is happens

I here of we than multiple XXXX year, next those in a we’ll call position today. And at sitting we all December have different plans to better and XX think, have for are much plans in be those. assumptions

Mig Dobre

around a of looking sort mathematical a question, decremental at EBITDA it operating the fourth is just plugging assuming else the it something XX is level in My quarter. my you question call have were in looks and right in to I'm on mind? was final you're or This of Again, low-XXs should margin would. that. with do model appreciate or we I decline you on be for when assume your margin XXXX, If revenue one of guidance, decremental like margin. if that this

Barry Pennypacker

be level operating not of should within margin you decremental the No. That's XXXX.

Mig Dobre

you Can expand on that?

Barry Pennypacker

Yes.

is it, little it you decline quarter I anomaly the your when the of at think, Mig, comes when bit an a midpoint. in fourth look to

what -- that but putting that that think, million basis look quite sure range. you true in not you $X would are point But said we're look this I decrementals plan always and XXXX know at at year we've within is about I'm I looking let a February. that hold on about in you which where for quarter-over-quarter when XX% $XX is if mean plan on at the the I'm a time. EBITDA, together, down million saying we your you’re down, we’ll

Mig Dobre

that, is that's for I look, not down, hard But feel margins if to what it's mean, to trying I'm I say appreciate here. that. your volume

Barry Pennypacker

understood… I Yes.

Mig Dobre

come you're these have though up not I well estimates. even as might guidance. up, we're to expectations have mean, going We to providing with lined

that's why on. you So, I'm pushing

David Antoniuk

And think agree we’d to consideration where key revenue, I at the in the out is well. look through I flow No, whole obviously as you the where comes Yes. with of the there. be. SG&A other process our When that's alternative of in you

Mig Dobre

color. I'll up All right. Well, the follow thanks offline. for

David Antoniuk

you. Thank

Operator

ahead. Thank you. William DeMaria next from of And Larry Blair. Please question comes go our

Larry DeMaria

Good morning. Thanks. Hey. Two questions.

Barry Pennypacker

morning, Larry. Good

Larry DeMaria

about talked positive you Obviously, guys. pricing morning, contribution. Good

in of over about thoughts and this. the curious cycles possible and the secondly, how talked just costs few the quarter in offsets Sorry, I one volume moving the that your years period, you we the prior cranes versus forward? is that. averages stuff. And But, is last looks specifically talk the reasons the If material the sales? if the you about and and on I product interesting missed to productivity for was offset of Thanks. it think analysis, that about can productivity hear

Barry Pennypacker

and competitive new right that I manpower. others. now more to productive would say than There is is our factor more market is no limiting the expansion are question What products

and You taking on getting they operate to work qualified operators talk large crane with biggest issue the is our houses have equipment. to rental new the

I but as of its been is, to as firms, So, have financial in -- has when everyone they that to as the to another they we I of more of in equity predict to some in come cycles, those other think, time levels that may told show been that utilized, you become because and private But, point some to their modeling the in said, the a we’re have highly going also improved. could free and then Jamie, financial going able overall, at they've creeped time, that said But they're know and rental the crane number willing types discipline of the become labor that I is is more than in way up. much companies definitely going may standpoint. sophisticated to exactly cycles part that out past, return on sophisticated are will fact be in in have exhibiting wish from results we've these bet being are cranes there I I

Larry DeMaria

reckon, that be for you'd right -- wasn't more you as now. labor that So, a orders tight lot it Barry, is as those higher, would if selling

Barry Pennypacker

go projects that in go at But, see at confidence expansion the Louisiana being the of factor board absence of be then the was if I funded be no I is to mean, and built. going halt would will mind is certain and orders my part And in point. person this a again large U.S. to of have and and look equipment absence at There's going a look got economy elected, labor start labor that that on limiting be until the higher you've that the come the question a as fact you Texas. down war trade all these the are to result not at do to in I returns mean, southern a available. screeching the country all we're think and we to of is being

Larry DeMaria

you. material That's on interesting. then the cost? And Thank just

Barry Pennypacker

David?

David Antoniuk

pretty benefits, a bit So, we but I have call pretty -- of some flat. I think, Year-over-year, out. enough would sequentially, a to material not say,

Larry DeMaria

good and Great much. job Okay. Thanks luck. very

Barry Pennypacker

you. Thank

Operator

back It appears hand this for call you to we any have questions closing additional like no to Warner, at I'd further the time. remarks. or Mr.

Ion Warner

Thank you.

Before Manitowoc replay with everyone. in we Have again forward XXXX be conference will everyone that our today The by of accessing call quarter and joining morning quarter. this a website next to continuing us not please speaking you conclude We third a today's look Company. you Relations for good call, our of available day, later Thank for www.manitowoc.com. interest the at Investor section your

Operator

call. all Thank for you today's participation. your concludes This

disconnect. may You now

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