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Manitowoc (MTW) Withdraws From CONEXPO Citing Cost Issues
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The Manitowoc Company, Inc. (MTW - Free Report) announced its decision to withdraw from the CONEXPO-CON/AGG 2023 trade show to be held at the Las Vegas Convention Center in March 14 to 18, owing to the current inflationary cost pressure faced by the company.
Manitowoc has been implementing several pricing actions to mitigate cost inflation over the past 18 months. The company has periodically passed on these increased costs to its customers, but it might not be adequate to counter the impact of high costs. Therefore, the company decided not to invest in a second, large tradeshow considering the current inflationary environment.
MTW continues to invest in new products and aims to showcase its latest developments at the upcoming Bauma show, the world's leading construction machinery trade fair, in October 2022.
Ongoing supply-chain and logistics challenges impacted Manitowoc’s revenues in first-quarter 2022. The company witnessed a 21.6% sequential orders plunge in the quarter, putting a brake on growth in orders seen by the company in the past three quarters. The company anticipates that the recent inflation, particularly in Europe, besides further deterioration in the supply chain, will add to the pressure on the top line and margins throughout 2022.
Manitowoc, thus, expects adjusted EBITDA to come in at the lower end of the previous guidance. It had earlier guided revenues in the range of $2.0-$2.2 billion, adjusted EBITDA in the range of $130-$160 million and adjusted EPS between 65 cents and $1.35.
The company is facing higher steel, logistics, and transportation costs (both ocean and land freight), which are expected to persist in 2022. Additionally, the semiconductor chip shortage created significant issues throughout its supply base.
Manitowoc anticipates the ongoing global supply-chain and logistic challenges, inflationary pressures, and an unstable labor market to impact results through the first half of 2022. In the second half of 2022, the company expects these headwinds to subside.
Manitowoc’s innovation pipeline remains robust. Focus on innovation will continue to aid it in leading the industry by providing differentiated products that add value to customers. The company has also been taking the necessary steps to align production with changing demand levels. It has remained focused on cutting costs, increasing productivity and eliminating waste. Operational focus, healthy balance sheet and market-leading products position it well to capitalize as end markets recover.
The company remains focused on cash preservation and balance sheet management while funding critical programs for future growth. It continues to evaluate acquisition opportunities to accelerate product development programs in its all-terrain product line. Manitowoc is scaling up its Chinese tower crane business and has launched six new crane models, which have received positive customer feedback. The company invested $15 million in its tower crane rental fleet in Europe, which helped gain market share in Germany and win some strategic orders with key accounts. In all-terrain cranes, the company has new models lined up for launch at Bauma show in 2022. These strategic initiatives and the company’s pursuit of acquisition opportunities will drive substantial long-term growth.
Price Performance
Manitowoc’s shares have declined 42.8% in the last six months compared with the industry’s fall of 10.9%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Manitowoc currently carries a Zacks Rank #5 (Strong Sell).
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 8% in the past six months.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have increased 25% over the last six months.
Titan International has an estimated earnings growth rate of 112% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 55%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have soared 46.7% in six months.
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Manitowoc (MTW) Withdraws From CONEXPO Citing Cost Issues
The Manitowoc Company, Inc. (MTW - Free Report) announced its decision to withdraw from the CONEXPO-CON/AGG 2023 trade show to be held at the Las Vegas Convention Center in March 14 to 18, owing to the current inflationary cost pressure faced by the company.
Manitowoc has been implementing several pricing actions to mitigate cost inflation over the past 18 months. The company has periodically passed on these increased costs to its customers, but it might not be adequate to counter the impact of high costs. Therefore, the company decided not to invest in a second, large tradeshow considering the current inflationary environment.
MTW continues to invest in new products and aims to showcase its latest developments at the upcoming Bauma show, the world's leading construction machinery trade fair, in October 2022.
Ongoing supply-chain and logistics challenges impacted Manitowoc’s revenues in first-quarter 2022. The company witnessed a 21.6% sequential orders plunge in the quarter, putting a brake on growth in orders seen by the company in the past three quarters. The company anticipates that the recent inflation, particularly in Europe, besides further deterioration in the supply chain, will add to the pressure on the top line and margins throughout 2022.
Manitowoc, thus, expects adjusted EBITDA to come in at the lower end of the previous guidance. It had earlier guided revenues in the range of $2.0-$2.2 billion, adjusted EBITDA in the range of $130-$160 million and adjusted EPS between 65 cents and $1.35.
The company is facing higher steel, logistics, and transportation costs (both ocean and land freight), which are expected to persist in 2022. Additionally, the semiconductor chip shortage created significant issues throughout its supply base.
Manitowoc anticipates the ongoing global supply-chain and logistic challenges, inflationary pressures, and an unstable labor market to impact results through the first half of 2022. In the second half of 2022, the company expects these headwinds to subside.
Manitowoc’s innovation pipeline remains robust. Focus on innovation will continue to aid it in leading the industry by providing differentiated products that add value to customers. The company has also been taking the necessary steps to align production with changing demand levels. It has remained focused on cutting costs, increasing productivity and eliminating waste. Operational focus, healthy balance sheet and market-leading products position it well to capitalize as end markets recover.
The company remains focused on cash preservation and balance sheet management while funding critical programs for future growth. It continues to evaluate acquisition opportunities to accelerate product development programs in its all-terrain product line. Manitowoc is scaling up its Chinese tower crane business and has launched six new crane models, which have received positive customer feedback. The company invested $15 million in its tower crane rental fleet in Europe, which helped gain market share in Germany and win some strategic orders with key accounts. In all-terrain cranes, the company has new models lined up for launch at Bauma show in 2022. These strategic initiatives and the company’s pursuit of acquisition opportunities will drive substantial long-term growth.
Price Performance
Manitowoc’s shares have declined 42.8% in the last six months compared with the industry’s fall of 10.9%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Manitowoc currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Industrial Products sector are Graphic Packaging Holding Company (GPK - Free Report) , Myers Industries (MYE - Free Report) and Titan International , each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 8% in the past six months.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have increased 25% over the last six months.
Titan International has an estimated earnings growth rate of 112% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 55%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have soared 46.7% in six months.