On February 15, 2024, Manitowoc Co Inc (MTW, Financial) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2023. The company, a leading provider of engineered lifting solutions, reported a mixed set of results with full-year net sales increasing by 9.6% to $2.23 billion, while fourth-quarter sales saw a decline of 4.2% to $595.8 million.
Manitowoc operates through three segments: the Americas, Europe and Africa, and the Middle East and Asia-Pacific, with the Americas being the largest revenue contributor. The company's portfolio includes mobile telescopic cranes, tower cranes, lattice-boom crawler cranes, and boom trucks, marketed under brands like Grove, Manitowoc, and National Crane.
The full-year adjusted EBITDA margin was 7.9%, with a reported value of $175.3 million, while the fourth-quarter adjusted EBITDA margin was 6.1%, totaling $36.5 million—a 29.1% decrease from the previous year. The company's adjusted net income per share for the full year was $1.52, an increase from the prior year, but the fourth quarter saw a net loss of $7.9 million, or $0.23 per diluted share.
President and CEO Aaron H. Ravenscroft commented on the results, stating,
I am pleased with the overall performance in 2023 where we delivered strong financial results and continued to execute on our CRANES+50 strategy. We increased our adjusted EBITDA 22.5% year-over-year, and we grew our non-new machine sales 12.4%,"indicating a strategic focus beyond just new machine sales.
Despite the positive full-year figures, the fourth quarter presented challenges, with a significant decrease in orders and free cash flow. Orders in Q4 totaled $475.7 million, a 32.8% decrease from the prior year, and free cash flow dropped to $22.3 million, a $27.9 million decrease from the previous year. The company's backlog, however, remained strong at $917.2 million, ending the quarter with a favorable impact from foreign currency exchange rates.
Looking ahead, Manitowoc provided guidance for the full year of 2024, anticipating net sales between $2.275 billion and $2.375 billion, and adjusted EBITDA between $150 million and $180 million. The company expects the global demand for mobile cranes to remain robust, while the European tower crane market may present challenges.
Manitowoc's balance sheet reflects a solid financial position, with total assets of $1.71 billion as of December 31, 2023. The company's cash and cash equivalents stood at $34.4 million, a decrease from $64.4 million at the end of the previous year. Total liabilities and stockholders' equity matched the asset figures, indicating a balanced financial structure.
In conclusion, Manitowoc's 2023 performance showcased resilience and strategic growth in certain areas, despite a challenging fourth quarter. The company's forward-looking statements suggest cautious optimism for 2024, with a strong backlog and strategic initiatives expected to drive performance in a dynamic market environment.
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Explore the complete 8-K earnings release (here) from Manitowoc Co Inc for further details.
