The Manitowoc Company, Inc. MTW reported adjusted earnings per share (EPS) of 9 cents in fourth-quarter 2023, missing the Zacks Consensus Estimate of 19 cents. Compared with an EPS of 74 cents in the fourth quarter of 2022, earnings in the quarter under review marked a substantial slump of 87.8% due to lower sales.

Including one-time items, the company reported a loss of 23 cents per share in the fourth quarter of 2023 compared with the year-ago quarter’s loss of $4.10.

Manitowoc’s revenues were down 4% year over year to $596 million in the quarter under review. The top line, however, surpassed the Zacks Consensus Estimate of $575 million. Favorable changes in foreign currency translation rates had an impact of $9 million on sales.

Orders in the reported quarter decreased 32.8% year over year to $475.7 million. The backlog at the end of the fourth quarter was $917 million, which decreased 10.8% from the third quarter of 2023.

The Manitowoc Company, Inc. Price, Consensus and EPS Surprise

 

The Manitowoc Company, Inc. price-consensus-eps-surprise-chart | The Manitowoc Company, Inc. Quote

Operational Update

The cost of sales declined 1.7% year over year to $497 million in the reported quarter. The gross profit was down 15% year over year to $99 million. The gross margin was 16.6% in the reported quarter compared with 18.7% in the year-ago quarter.

Engineering, selling and administrative expenses increased 11% year over year to $88.2 million. Total adjusted operating costs and expenses were $78 million in the quarter, down 2% year over year.

Adjusted operating income was $20.9 million in the quarter, down 42.6% from $36.4 million in the year-ago quarter. Adjusted EBITDA in the reported quarter was $36.5 million compared with $51.5 million in the year-ago quarter. The adjusted EBITDA margin declined to 6.1% from the year-ago quarter’s 8.3%.

Cash Position & Balance Sheet

Manitowoc reported cash and cash equivalents of $34 million at the end of 2023, down from $64 million at 2022 end. The long-term debt was $359 million at the end of 2023, down from $380 million at 2022 end.

The company generated $63 million in cash in operating activities in 2023 compared with $77 million in 2023.

2023 Results

Manitowoc reported adjusted EPS of $1.52 in 2023, which was 43% higher than the EPS of $1.06 reported in 2022. The bottom-line figure, however, missed the Zacks Consensus Estimate of $1.62.

Including one-time items, the company reported EPS of $1.09 in 2023 against a loss of $3.51 per share in 2022.

Manitowoc’s revenues were up 9.6% year over year to $2.23 billion in 2023. The top line surpassed the consensus estimate of $2.21 billion. Favorable changes in foreign currency translation rates had an impact of $15.5 million on sales.