Schedules Third-quarter 2016 Earnings
Announcement and Conference Call
The Manitowoc Company, Inc. (NYSE: MTW) announced today
preliminary results for its third quarter ended September 30,
2016.
As of the date of this release, the company has not completed
its financial statement reporting process for the quarter. During
the course of that process, the company may identify items that
would require it to make adjustments, which may be material, to the
preliminary financial information presented below. As a result, the
preliminary unaudited financial information included in this
release is subject to risks and uncertainties.
Preliminary Unaudited Financial
Information for Third-Quarter 2016
For the third-quarter 2016, net sales are expected to be
approximately $350 million versus $438 million in the third-quarter
2015.
On a GAAP basis, for the third-quarter 2016, the company expects
to report a loss from continuing operations of approximately ($138)
million as compared to a loss from continuing operations of ($30)
million in the third-quarter 2015.
GAAP operating loss for the third-quarter 2016 is expected to be
approximately ($134) million, compared to ($8) million in the
third-quarter 2015, and includes $77 million of impairment charges
related to certain software assets (primarily ERP software) and
restructuring and impairment costs related to the relocation of
crawler and tower crane manufacturing operations.
Non-GAAP adjusted operating loss(1) for the third-quarter 2016
is expected to be approximately ($31) million compared to ($8)
million in the same period last year. Although the 2016 non-GAAP
adjusted operating loss excludes certain items, it includes
approximately $30 million of adjustments as outlined in the below
schedule of non-GAAP items.
“Orders and backlog for the company declined double digits
during the third quarter, and these trends have continued into the
fourth quarter. Subsequently, we’ve significantly reduced our
production build schedules for Mobile products to reflect these
lower incoming order rates. In addition, we are accelerating the
relocation of the Manitowoc crawler production to Shady Grove,
taking additional headcount reductions, reducing other non-employee
costs, and temporarily shutting-down certain mobile production
lines during the fourth quarter. While this will negatively affect
gross profits for the balance of the year, we believe it will put
us in a better position to manage cash flow in the current
environment,” said Barry Pennypacker, President & CEO.
Pennypacker continued, “In spite of on-going challenges in the
crane market, the company has made excellent progress on its cost
initiatives while it continues to invest in new products and
product improvement initiatives. Although the current business
environment remains difficult, we are confident in our long-term
strategy, targeting double-digit operating margins by 2020.”
Investor Conference Call
On Tuesday, November 1st, 2016, the company will release its
third-quarter 2016 financial results, after the close of market.
The company will discuss its third-quarter earnings results and
updated full-year outlook during a live conference call for
security analysts and institutional investors at 10:00 a.m. ET
(9:00 a.m. CT) Wednesday, November 2nd, 2016. A live audio webcast
of the call, along with the related presentation, can be accessed
in the Investor Relations section of Manitowoc’s website at
http://www.manitowoc.com. A replay of the conference call will also
be available at the same location on the website.
About The Manitowoc Company, Inc.
Founded in 1902, The Manitowoc Company, Inc. is a leading global
manufacturer of cranes and lift solutions with manufacturing,
distribution, and service facilities in 20 countries. Manitowoc is
recognized as one of the premier innovators and providers of
crawler cranes, tower cranes, and mobile cranes for the heavy
construction industry, which are complemented by a slate of
industry-leading aftermarket product support services. In 2015,
Manitowoc’s revenues totaled $1.9 billion, with over half of these
revenues generated outside the United States.
(1) Non-GAAP adjusted operating loss is a financial measure that
is not in accordance with GAAP. For a reconciliation to the
comparable GAAP number please see “Schedule of Non-GAAP Items” at
the end of this press release. Manitowoc believes the non-GAAP
financial measure of adjusted operating loss provides important
supplemental information to both management and investors regarding
financial and business trends used in assessing its results of
operations. Manitowoc believes excluding specified items from
operating income provides a more meaningful comparison to the
corresponding reporting periods and internal budgets and forecasts,
assists investors in preforming analysis that is consistent with
financial models developed by investors and research analysts,
provides management with a more relevant measure of operating
performance, and is more useful in assessing management
performance.
Forward-looking Statements
This press release includes "forward-looking statements"
intended to qualify for the safe harbor from liability under the
Private Securities Litigation Reform Act of 1995. Any statements
contained in this press release that are not historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
based on the current expectations of the management of the company
and are subject to uncertainty and changes in circumstances.
Forward-looking statements include, without limitation, statements
typically containing words such as "intends," "expects,"
"anticipates," "targets," "estimates," and words of similar import.
By their nature, forward-looking statements are not guarantees of
future performance or results and involve risks and uncertainties
because they relate to events and depend on circumstances that will
occur in the future. There are a number of factors that could cause
actual results and developments to differ materially from those
expressed or implied by such forward-looking statements. Factors
that could cause actual results and developments to differ
materially include, among others:
- unanticipated changes in revenues,
margins, costs, and capital expenditures;
- the ability to significantly improve
profitability;
- potential delays or failures to
implement specific initiatives within the restructuring
program;
- issues relating to the ability to
timely and effectively execute on manufacturing strategies,
including issues relating to plant closings, new plant start-ups,
and/or consolidations of existing facilities and operations, and
its ability to achieve the expected benefits from such
actions;
- the ability to direct resources to
those areas that will deliver the highest returns;
- uncertainties associated with new
product introductions, the successful development and market
acceptance of new and innovative products that drive growth;
- the ability to focus on the customer,
new technologies, and innovation;
- the ability to focus and capitalize on
product quality and reliability;
- the ability to increase operational
efficiencies across Manitowoc’s business segment and to capitalize
on those efficiencies;
- the ability to capitalize on key
strategic opportunities and the ability to implement Manitowoc’s
long-term initiatives;
- the ability to generate cash and manage
working capital consistent with Manitowoc’s stated goals;
- the ability to convert order and order
activity into sales and the timing of those sales;
- pressure of financing leverage;
- matters impacting the successful and
timely implementation of ERP systems;
- foreign currency fluctuations and their
impact on reported results and hedges in place with Manitowoc;
- changes in raw material and commodity
prices;
- unexpected issues associated with the
quality of materials and components sourced from third parties and
the resolution of those issues;
- unexpected issues associated with the
availability and viability of suppliers;
- the risks associated with growth;
- geographic factors and political and
economic conditions and risks;
- actions of competitors;
- changes in economic or industry
conditions generally or in the markets served by Manitowoc;
- unanticipated changes in customer
demand, including changes in global demand for high-capacity
lifting equipment; changes in demand for lifting equipment in
emerging economies, and changes in demand for used lifting
equipment;
- global expansion of customers;
- the replacement cycle of
technologically obsolete cranes;
- the ability of Manitowoc's customers to
receive financing;
- efficiencies and capacity utilization
of facilities;
- issues related to workforce reductions
and subsequent rehiring;
- work stoppages, labor negotiations,
labor rates, and temporary labor costs;
- government approval and funding of
projects and the effect of government-related issues or
developments;
- the ability to complete and
appropriately integrate restructurings, consolidations,
acquisitions, divestitures, strategic alliances, joint ventures,
and other strategic alternatives;
- realization of anticipated earnings
enhancements, cost savings, strategic options and other synergies,
and the anticipated timing to realize those savings, synergies, and
options;
- unanticipated issues affecting the
effective tax rate for the year;
- unanticipated changes in the capital
and financial markets;
- risks related to actions of activist
shareholders;
- changes in laws throughout the
world;
- natural disasters disrupting commerce
in one or more regions of the world;
- risks associated with data security and
technological systems and protections;
- acts of terrorism; and
- risks and other factors cited in
Manitowoc's filings with the United States Securities and Exchange
Commission.
Manitowoc undertakes no obligation to update or revise
forward-looking statements, whether as a result of new information,
future events, or otherwise. Forward-looking statements only speak
as of the date on which they are made. 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, 2015.
Non-GAAP Financial Measure
In this release, the company refers to adjusted operating loss.
We believe that this measure is helpful to investors in assessing
the company's ongoing performance of its underlying businesses
before the impact of adjustments, including asset impairment and
restructuring charges. In addition, this non-GAAP measures provide
a comparison to commonly used financial metrics within the
professional investing community which do not include
adjustments.
Below is a reconciliation of preliminary operating loss on a
GAAP basis to adjusted operating loss (in millions; all 2016 data
is preliminary and subject to change):
Schedule of Non-GAAP Items Three Months
Ended September 30, 2016 2015 Net income
(loss) $ (140.0 ) $ 4.8 Loss (income) from discontinued operations
1.8 (34.4 ) Loss from continuing operations $
(138.2 ) $ (29.6 ) Operating loss $ (133.5 ) $ (8.2 )
Adjustments: Asset impairment 96.9 - Restructuring 3.9 (0.4 )
Amortization 0.7 0.8 Other 0.5 0.1
Non-GAAP adjusted operating loss $ (31.5 ) $ (7.7 )
Adjustments included in Non-GAAP adjusted operating loss: Inventory
reserves 9.4 Losses from decline in used crane values 13.5 Product
improvement initiatives 3.4 Plant variances 3.6 Total
$ 29.9
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161019006525/en/
The Manitowoc Company, Inc.David AntoniukSVP & Chief
Financial Officer920-652-1769
Manitowoc (NYSE:MTW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Manitowoc (NYSE:MTW)
Historical Stock Chart
From Apr 2023 to Apr 2024