The Manitowoc Company, Inc. (NYSE:MTW) has released its latest earnings report on Monday, noting a 4% year-over-year decline in net sales to $457.70 million from $477.70 million and a 7.08% sequential increase from $427.40 million.
Q2 Financial Highlights
For the period, The Manitowoc had an adjusted operating income of $14.80 million, down year-over-year from $15.40 million.
Meanwhile, capital expenditures for the period were seen at a total of $13.80 million, which is slightly down year-over-year from $14 million.
The company ended the second quarter with a total backlog of $394 million, which is sequentially down from more than half a million dollar. Orders were also sequentially down to $349 million from $417 million.
FY 2016 Outlook
Along with the second quarter results, The Manitowoc has also issued its guidance for the full-year 2016.
The company expects a revenue plunge of between 10% and 12%. Capital expenditures for the current fiscal year (FY), on the other hand, are expected to come at around $45 million to $50 million.
Crawler Crane Manufacturing Operations Relocation
On Monday, The Manitowoc has also revealed that it is planning to relocate the crawler crane manufacturing operations to Shady Grove, Pennsylvania from its current site at Manitowoc, Wisconsin. However, the product engineering and other support functions are foreseen to remain at Manitowoc. Similarly, the main headquarters (HQ) of the company will not be relocated.
The relocation is slated to begin in the third quarter and to conclude by mid-2017. The Manitowoc expects to generate up to $30 million in annualized pre-tax cost savings from the relocation.
The 300-acre Shady Grove facility boasts with top-of-the-line manufacturing capabilities given its extensive product lines such as boom trucks, industrial cranes, lattice boom crawler cranes, rough terrain cranes, and truck cranes.
Barry Pennypacker, The Manitowoc CEO and President, noted that the decision has undergone thorough consideration of all significant factors. He believes that the restructuring will strengthen the company’s position in the industry as it is likely to further meet the demands of the market.