The Manitowoc Company, Inc. (MTW) Bundle
A Brief History of The Manitowoc Company, Inc.
The Manitowoc Company, Inc. (MTW), established in 1902, has evolved into a prominent player in the manufacturing of cranes and lifting equipment. The company operates primarily through three segments: Americas, EURAF (Europe, Africa), and MEAP (Middle East, Asia Pacific).
Recent Financial Performance
As of September 30, 2024, Manitowoc reported consolidated net sales of $524.8 million for the third quarter, representing a slight increase of 0.7% compared to $520.9 million in the same period in 2023. Year-to-date net sales for the nine months ended September 30, 2024, decreased by 3.1% to $1,582.0 million, down from $1,632.0 million in 2023.
| Segment | Q3 2024 Net Sales ($ million) | Q3 2023 Net Sales ($ million) | Year-to-Date 2024 Net Sales ($ million) | Year-to-Date 2023 Net Sales ($ million) |
|---|---|---|---|---|
| Americas | 287.1 | 276.8 | 867.0 | 860.6 |
| EURAF | 126.8 | 150.6 | 446.0 | 514.6 |
| MEAP | 110.9 | 93.5 | 269.0 | 256.8 |
Gross Profit and Operating Income
The gross profit for Q3 2024 was $87.6 million, down from $96.8 million in Q3 2023. This decline was attributed to an unfavorable product mix and lower absorbed costs due to reduced manufacturing volume in the EURAF segment. The gross profit percentage decreased to 16.7% from 18.6% in the same quarter of the previous year.
For the nine months ended September 30, 2024, gross profit totaled $279.8 million, a decrease of 14.2% from $326.1 million in 2023. The gross profit percentage for this period also fell from 20.0% in 2023 to 17.7% in 2024.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Gross Profit ($ million) | 87.6 | 96.8 | 279.8 | 326.1 |
| Gross Profit Percentage | 16.7% | 18.6% | 17.7% | 20.0% |
Operating Expenses and Net Income
Engineering, selling, and administrative expenses were relatively stable at $78.9 million for Q3 2024, compared to $77.4 million in Q3 2023. However, for the nine months ended September 30, 2024, these expenses slightly decreased to $238.6 million from $240.1 million in 2023.
Manitowoc reported a net loss of $7.0 million for Q3 2024 compared to a net income of $10.4 million in Q3 2023. For the nine months ended September 30, 2024, the company recorded a net loss of $0.9 million, a significant decline from a net income of $47.1 million in the previous year.
| Metric | Q3 2024 ($ million) | Q3 2023 ($ million) | Year-to-Date 2024 ($ million) | Year-to-Date 2023 ($ million) |
|---|---|---|---|---|
| Net Income (Loss) | (7.0) | 10.4 | (0.9) | 47.1 |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Manitowoc experienced negative cash flows from operating activities amounting to $(63.2) million, a decrease from $23.2 million in 2023. The company’s capital expenditures were $34.4 million, down from $59.9 million in the previous year.
As of September 30, 2024, Manitowoc's cash and cash equivalents were reported at $22.9 million, compared to $34.4 million on December 31, 2023. The total liquidity as of the same date was $221.9 million, which includes borrowing capacity and other debt availability.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents ($ million) | 22.9 | 34.4 |
| Total Liquidity ($ million) | 221.9 | 280.0 |
Debt and Financial Ratios
As of September 30, 2024, Manitowoc's total debt was reported at $469.5 million, which includes short-term borrowings of $40.5 million and long-term debt of $426.7 million. The company’s Adjusted Return on Invested Capital (ROIC) was 6.2% as of the same date.
| Metric | Amount ($ million) |
|---|---|
| Total Debt | 469.5 |
| Adjusted ROIC | 6.2% |
A Who Owns The Manitowoc Company, Inc. (MTW)
Ownership Structure
As of 2024, The Manitowoc Company, Inc. (MTW) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The company has approximately 35 million shares outstanding.
Major Shareholders
Below is a table summarizing the major shareholders of Manitowoc as of 2024:
| Shareholder | Ownership (%) | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.5% | 3,700,000 |
| The Vanguard Group, Inc. | 8.2% | 2,800,000 |
| State Street Corporation | 7.1% | 2,500,000 |
| Wellington Management Company, LLP | 5.3% | 1,900,000 |
| Invesco Ltd. | 4.6% | 1,600,000 |
| Other Institutional Investors | 25.0% | 8,800,000 |
| Individual Shareholders | 39.3% | 13,800,000 |
Stock Performance and Market Capitalization
As of September 30, 2024, Manitowoc's stock was trading at approximately $20.00 per share, giving the company a market capitalization of around $700 million.
Recent Financial Overview
For the third quarter of 2024, Manitowoc reported:
- Net sales of $524.8 million.
- Net income (loss) of $(7.0) million.
- Basic net income (loss) per share of $(0.20).
- Operating income of $7.5 million.
Debt and Liquidity
As of September 30, 2024, Manitowoc had total debt of $555.6 million, comprising:
- Borrowings under senior secured asset-based revolving credit facility: $128.6 million.
- Senior secured second lien notes due 2031: $300.0 million.
- Other debt: $43.9 million.
Cash and cash equivalents stood at $22.9 million, with total liquidity of $221.9 million available for operational needs.
Conclusion on Ownership Dynamics
The ownership of The Manitowoc Company, Inc. is characterized by significant institutional ownership, complemented by a notable proportion held by individual investors. The company's financial performance and stock dynamics play a critical role in shaping the ownership landscape.
The Manitowoc Company, Inc. (MTW) Mission Statement
Overview of the Mission Statement
The Manitowoc Company, Inc. is committed to delivering innovative solutions and high-quality lifting equipment to its customers. The mission emphasizes a focus on customer satisfaction, operational excellence, and sustainability in all business practices.
Current Financial Performance
As of the third quarter of 2024, Manitowoc reported consolidated net sales of $524.8 million, a slight increase from $520.9 million in the same period of 2023. For the nine months ended September 30, 2024, net sales decreased by 3.1% to $1,582.0 million compared to $1,632.0 million in 2023.
| Period | Net Sales ($ millions) | Gross Profit ($ millions) | Gross Profit Margin (%) | Operating Income ($ millions) | Net Income (Loss) ($ millions) |
|---|---|---|---|---|---|
| Q3 2024 | 524.8 | 87.6 | 16.7 | 7.5 | (7.0) |
| Q3 2023 | 520.9 | 96.8 | 18.6 | 18.0 | 10.4 |
| 9M 2024 | 1,582.0 | 279.8 | 17.7 | 35.6 | (0.9) |
| 9M 2023 | 1,632.0 | 326.1 | 20.0 | 82.6 | 47.1 |
Segment Performance
Manitowoc operates through three segments: Americas, EURAF, and MEAP. The performance of each segment for Q3 2024 is as follows:
| Segment | Net Sales ($ millions) | Operating Income (Loss) ($ millions) |
|---|---|---|
| Americas | 287.1 | 23.1 |
| EURAF | 126.8 | (14.9) |
| MEAP | 110.9 | 10.0 |
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow summary is as follows:
| Cash Flow Category | 2024 ($ millions) | 2023 ($ millions) | Dollar Change ($ millions) |
|---|---|---|---|
| Net cash provided by (used for) operating activities | (63.2) | 23.2 | (86.4) |
| Net cash used for investing activities | (29.1) | (54.6) | 25.5 |
| Net cash provided by financing activities | 81.0 | 7.4 | 73.6 |
Liquidity Position
As of September 30, 2024, Manitowoc's liquidity position is as follows:
| Liquidity Item | Amount ($ millions) |
|---|---|
| Cash and cash equivalents | 22.9 |
| Revolver borrowing capacity | 325.0 |
| Other debt availability | 45.5 |
| Total liquidity | 221.9 |
Market Conditions and Strategic Focus
The Manitowoc Company operates in a challenging market characterized by fluctuating demand for construction equipment. The company's strategic focus includes enhancing product offerings and improving operational efficiencies to adapt to market conditions.
Conclusion on the Mission Statement
In alignment with its mission, Manitowoc continues to strive for operational excellence and customer satisfaction while navigating the complexities of the global market.
How The Manitowoc Company, Inc. (MTW) Works
Company Overview
The Manitowoc Company, Inc. (MTW) is a global leader in the design and manufacture of cranes and lifting equipment. The company operates through three primary segments: Americas, EURAF (Europe and Africa), and MEAP (Middle East and Asia Pacific).
Financial Performance
As of September 30, 2024, Manitowoc reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $524.8 million | $520.9 million | 0.7% |
| Gross Profit | $87.6 million | $96.8 million | (9.5%) |
| Gross Profit % | 16.7% | 18.6% | (1.9%) |
| Operating Income | $7.5 million | $18.0 million | (58.3%) |
| Net Income (Loss) | $(7.0) million | $10.4 million | |
| EBITDA | $18.2 million | $33.5 million | (45.6%) |
Segment Performance
The company monitors its operations across three geographical segments:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change (%) | Q3 2024 Operating Income (Loss) | Q3 2023 Operating Income (Loss) |
|---|---|---|---|---|---|
| Americas | $287.1 million | $276.8 million | 3.7% | $23.1 million | $23.5 million |
| EURAF | $126.8 million | $150.6 million | (15.8%) | $(14.9) million | $(7.7) million |
| MEAP | $110.9 million | $93.5 million | 18.6% | $10.0 million | $12.7 million |
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow metrics were as follows:
| Metric | 2024 | 2023 | Change ($ million) |
|---|---|---|---|
| Net Cash Provided by (Used for) Operating Activities | $(63.2) | $23.2 | $(86.4) |
| Net Cash Used for Investing Activities | $(29.1) | $(54.6) | $25.5 |
| Net Cash Provided by Financing Activities | $81.0 | $7.4 | $73.6 |
| Cash and Cash Equivalents | $22.9 | $40.0 | $(17.1) |
Balance Sheet Highlights
As of September 30, 2024, the balance sheet showed the following key figures:
| Assets and Liabilities | 2024 | 2023 |
|---|---|---|
| Total Assets | $1,776.7 million | $1,706.7 million |
| Total Liabilities | $1,169.1 million | $1,119.2 million |
| Stockholders' Equity | $607.6 million | $587.5 million |
Outlook and Market Conditions
The company has faced challenges due to economic conditions, including high-interest rates and geopolitical uncertainties. Orders for Q3 2024 decreased by 20.0% to $424.7 million compared to the previous year, indicating a potential slowdown in demand.
Conclusion
As of September 30, 2024, The Manitowoc Company, Inc. is navigating a complex market environment while managing its operations across key segments. Financial performance shows mixed results, with revenue growth in certain areas offset by declines in others, particularly in the EURAF segment.
How The Manitowoc Company, Inc. (MTW) Makes Money
Overview of Business Segments
The Manitowoc Company operates primarily through three reportable segments: Americas, EURAF (Europe and Africa), and MEAP (Middle East and Asia Pacific). Each segment contributes differently to the company's overall revenue and profitability.
Net Sales by Segment
For the three months ended September 30, 2024, Manitowoc reported the following net sales by segment:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Americas | $287.1 million | $276.8 million | 3.7% |
| EURAF | $126.8 million | $150.6 million | (15.8%) |
| MEAP | $110.9 million | $93.5 million | 18.6% |
| Total | $524.8 million | $520.9 million | 0.7% |
Annual Performance
For the nine months ended September 30, 2024, the segment performance was as follows:
| Segment | Net Sales (9M 2024) | Net Sales (9M 2023) | Change (%) |
|---|---|---|---|
| Americas | $867.0 million | $860.6 million | 0.7% |
| EURAF | $446.0 million | $514.6 million | (13.3%) |
| MEAP | $269.0 million | $256.8 million | 4.8% |
| Total | $1,582.0 million | $1,632.0 million | (3.1%) |
Gross Profit and Operating Income
Manitowoc's gross profit for the three months ended September 30, 2024, was $87.6 million, reflecting a decrease from $96.8 million in Q3 2023, resulting in a gross profit margin of 16.7% compared to 18.6% the previous year.
Operating income for the same period was $7.5 million, down from $18.0 million in Q3 2023. The decline in both gross profit and operating income was mainly due to unfavorable product mix and lower absorbed costs in the EURAF segment.
Cash Flow Analysis
For the nine months ended September 30, 2024, Manitowoc reported the following cash flow data:
| Cash Flow Category | 2024 | 2023 | Change ($ million) |
|---|---|---|---|
| Net cash provided by (used for) operating activities | $(63.2) | $23.2 | $(86.4) |
| Net cash used for investing activities | $(29.1) | $(54.6) | $25.5 |
| Net cash provided by financing activities | $81.0 | $7.4 | $73.6 |
Segment Operating Income
The operating income (loss) for the segments for the three months ended September 30, 2024, was as follows:
| Segment | Operating Income (Q3 2024) | Operating Income (Q3 2023) | Change ($ million) |
|---|---|---|---|
| Americas | $23.1 million | $23.5 million | $(0.4) |
| EURAF | $(14.9) million | $(7.7) million | $(7.2) |
| MEAP | $10.0 million | $12.7 million | $(2.7) |
| Total | $18.2 million | $28.5 million | $(10.3) |
Market Trends and Challenges
As of September 30, 2024, Manitowoc faced a significant challenge with a total backlog of $742.1 million, a 19.1% decrease from the previous year. The decrease in backlog was attributed to lower demand driven by economic uncertainty.
Orders for the three months ended September 30, 2024, decreased by 20.0% year-over-year to $424.7 million, primarily due to lower demand in the Americas and EURAF segments, influenced by high-interest rates and economic uncertainties surrounding the U.S. presidential election.
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Article updated on 8 Nov 2024
Resources:
- The Manitowoc Company, Inc. (MTW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Manitowoc Company, Inc. (MTW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Manitowoc Company, Inc. (MTW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.