Milwaukee-based The Manitowoc Co. Inc. reported a fourth straight quarter of improved results Tuesday with a 26 percent increase in net sales and a narrowed loss, but executives also warned of looming challenges.
Manitowoc announced in January it would move its headquarters to the One Park Plaza office building on Milwaukee’s far northwest side. The maker of cranes and other lifting solutions reported net sales of $386.1 million, up from $305.8 million at the same time last year. Orders were up 10 percent and the company’s backlog increased 49 percent.
“The global crane market is reaching an inflection point, and it shows in our order rates year-to-date. However, like many capital goods companies, we are beginning to see headwinds in terms of materials inflation and supply chain challenges,” said Barry Pennypacker, Manitowoc president and chief executive officer.
He added foreign currency exchange rates are also presenting a challenge for margins, particularly on cranes produced in Europe for sales in the United States. The company plans to take pricing actions to be able to meet its earnings guidance for the full year.
Manitowoc reported a net loss of $10 million or 28 cents per diluted share for the quarter, an improvement over a $36 million loss, or $1.03 per share, for the same quarter last year.
“Our enhanced product portfolio is delivering new levels of differentiation and value demonstrated by increases in customer demand for our extensive range of products,” Pennypacker said. “We are clearly making meaningful progress in transforming Manitowoc into a leaner, more profitable crane company.”
