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Mar 31, 2020
Manitowoc Q1 2020 Earnings Report
Manitowoc reported a net loss amidst the COVID-19 pandemic, with cost reduction actions initiated and a focus on liquidity management.
Key Takeaways
Manitowoc reported a first-quarter net loss of $7.8 million, or $0.22 per diluted share. Net sales were $329.2 million and adjusted EBITDA was $16.3 million, or 5.0% of sales. First-quarter orders declined 15.0% from the prior year, totaling $375.0 million. The company had total liquidity of $382.0 million as of March 31, 2020.
Net sales for the first quarter were $329.2 million.
The company reported a net loss of $7.8 million, or $0.22 per diluted share.
Adjusted EBITDA for the first quarter was $16.3 million, representing 5.0% of sales.
First-quarter orders totaled $375.0 million, a 15.0% decrease year-over-year.
Forward Guidance
Due to uncertainty related to the COVID-19 pandemic, the Company withdrew guidance on March 27, 2020 and is not providing a financial outlook for 2020 at this time. The Company anticipates weaker demand levels to continue in the near term.
Positive Outlook
- Manitowoc, its suppliers and customers operations have begun to resume activity.
- Company has ample liquidity.
- Company has no significant debt maturities until 2026.
- Company entered this uncertain period as a more agile company and market leader with a strong balance sheet.
- Company has reduced its production levels and initiated a set of cost reduction actions.
Challenges Ahead
- Company does expect a significant impact to its second quarter and full year results due to the magnitude of supply chain and business disruptions.
- Company anticipates weaker demand levels to continue in the near term.
- Major facilities in Europe began closing in mid-March which delayed ability to ship products.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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