Latest news with #cranes
Yahoo
5 days ago
- Business
- Yahoo
Manitowoc (NYSE:MTW) Misses Q2 Sales Targets
Crane and lifting equipment company Manitowoc (NYSE:MTW) missed Wall Street's revenue expectations in Q2 CY2025, with sales falling 4% year on year to $539.5 million. Its non-GAAP profit of $2.80 per share was significantly above analysts' consensus estimates. Is now the time to buy Manitowoc? Find out in our full research report. Manitowoc (MTW) Q2 CY2025 Highlights: Revenue: $539.5 million vs analyst estimates of $577.3 million (4% year-on-year decline, 6.5% miss) Adjusted EPS: $2.80 vs analyst estimates of $0.18 (significant beat) Adjusted EBITDA: $26.3 million vs analyst estimates of $38.22 million (4.9% margin, 31.2% miss) Operating Margin: 2%, down from 3.6% in the same quarter last year Free Cash Flow was -$73.7 million compared to -$1.9 million in the same quarter last year Backlog: $729.3 million at quarter end, down 12.8% year on year Market Capitalization: $443.4 million Company Overview Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment. Revenue Growth A company's long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, Manitowoc's sales grew at a mediocre 6.3% compounded annual growth rate over the last five years. This fell short of our benchmark for the industrials sector and is a rough starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Manitowoc's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1.3% annually. Manitowoc isn't alone in its struggles as the Construction Machinery industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. Manitowoc also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Manitowoc's backlog reached $729.3 million in the latest quarter and averaged 15.1% year-on-year declines over the last two years. Because this number is lower than its revenue growth, we can see the company hasn't secured enough new orders to maintain its growth rate in the future. This quarter, Manitowoc missed Wall Street's estimates and reported a rather uninspiring 4% year-on-year revenue decline, generating $539.5 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 6% over the next 12 months. Although this projection indicates its newer products and services will catalyze better top-line performance, it is still below average for the sector. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Manitowoc was profitable over the last five years but held back by its large cost base. Its average operating margin of 1.6% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. Looking at the trend in its profitability, Manitowoc's operating margin decreased by 2.4 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Manitowoc's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. This quarter, Manitowoc generated an operating margin profit margin of 2%, down 1.6 percentage points year on year. Since Manitowoc's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Manitowoc's EPS grew at an astounding 61.8% compounded annual growth rate over the last five years, higher than its 6.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Manitowoc, its two-year annual EPS growth of 13.9% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q2, Manitowoc reported adjusted EPS at $2.80, up from $0.25 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Manitowoc to perform poorly. Analysts forecast its full-year EPS of $2.66 will hit $0.49. Key Takeaways from Manitowoc's Q2 Results We were impressed by how significantly Manitowoc blew past analysts' backlog expectations this quarter. We were also excited its EPS outperformed Wall Street's estimates by a wide margin. On the other hand, its revenue missed and its adjusted operating income fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock remained flat at $12.51 immediately after reporting. Is Manitowoc an attractive investment opportunity at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Standard
18-07-2025
- Business
- The Standard
China threatens to block Panama ports deal unless its shipping giant gets stake
A drone view shows cranes and containers at the new megaport being built by China's state-owned Cosco Shipping in Chancay, Peru October 24, 2024. REUTERS/Angela Ponce/File Photo
Yahoo
11-07-2025
- Business
- Yahoo
US port operators seek to mitigate hefty expected tariffs on China-built port cranes
By Lisa Baertlein LOS ANGELES (Reuters) -U.S. seaport operators are asking for extra time to implement pending tariffs on towering ship-to-shore cranes as they expect President Donald Trump's administration to follow through on a promise to essentially ban that vital cargo-handling equipment. The United States Trade Representative (USTR) earlier this year proposed tariffs of up to 100% on those cranes after China devoured market share in its bid to dominate maritime manufacturing as well as commercial and military dominance on the seas. China, via state-owned Shanghai Zhenhua Heavy Industries (ZMPC), now commands the global market and has supplied some 80% of the ship-to-shore cranes in the United States. ZPMC has more than 200 cranes in operation across nearly two dozen U.S. ports, including Houston, Los Angeles and New York. Each of those cranes costs anywhere from $10 million to $20 million. Countering that trend is a priority for the Trump administration, whose officials stated in meetings they intended to put an end to such purchases, said Carl Bentzel, president of the National Association of Waterfront Employers (NAWE), which represents terminal operators and other groups. Asked whether he expected the tariff rate to land at around 100% when USTR issues its pending decision on the matter, Bentzel said, "I've been operating under the position that that's the floor. This essentially is a ban on the use of Chinese manufactured cargo equipment." USTR and the White House did not immediately comment. Trump is not the first U.S. President to push ports to buy higher-priced cranes from manufacturers with ties to U.S. allies, including Konecranes of Finland, Mitsui E&S of Japan and Swiss-headquartered Liebherr. Joe Biden slapped 25% tariffs on ship-to-shore cranes from China in 2024 after the Cybersecurity and Infrastructure Security Agency, the Federal Bureau of Investigation and the National Security Agency publicly stated that China has sought to preposition cyber vulnerabilities in American critical infrastructure, including port equipment. U.S. officials also warned that modems, software and other technology in that equipment could be a backdoor for spying on military operations or used as kill switches to hobble port operations. Nevertheless, ports and terminal operators continued buying lower-cost Chinese cranes. "The inaction and resistance from the port operator community is focused on short-term cost savings and massively underestimates the ultimate cost of inaction," said William Henagan, a Council on Foreign Relations research fellow who was director for critical infrastructure at the National Security Council under Biden. U.S. port operators and representatives for ZMPC in letters to USTR in May said security concerns linked to the cranes were out of proportion to the risk. Opponents also warned that the tariffs could heave billions of dollars of unexpected costs on the industry, stifling improvements meant to keep U.S. ports competitive. These days NAWE, one of the industry organizations representing terminal operators, is working to mitigate the impact of the new tariffs by asking for exemptions for previously ordered cranes and a transition period for the implementation of new duties. "We've chosen to work with them," Bentzel said. Sign in to access your portfolio
Yahoo
18-06-2025
- Business
- Yahoo
Feds approve waiver for Alabama rail project amid automation concerns
The Federal Railroad Administration has approved a Buy America waiver for a planned intermodal container transfer facility (ICTF) in Montgomery, Alabama despite concerns that such a waiver could lead to lost jobs through automation. The Alabama State Port Authority (ASPA), which will oversee the ICTF, told the Federal Railroad Administration that the waiver is necessary in order to purchase two rubber-tired gantry cranes it wants to install at the facility, located next to the main CSX rail line between Montgomery and Mobile, Alabama. Projects receiving funding under FRA's Consolidated Rail Infrastructure and Safety Improvements (CRISI) program – ASPA received a $67.3 million CRISI grant for the project in 2022 – must adhere to the agency's Buy America requirements. But FRA may waive those requirements if it determines that:Applying the Buy America requirements would be inconsistent with the public interest; Steel, iron, and goods produced in the U.S. are not produced in a sufficient and reasonably available amount or are not of a satisfactory quality; Rolling stock or power train equipment cannot be bought and delivered in the United States within a reasonable time; or Including domestic material will increase the cost of the overall project by more than 25%. 'FRA has determined that the two rubber-tired gantry cranes, including spreaders, that meet ASPA's technical specifications are not produced in the United States in a sufficient and reasonably available amount or satisfactory quality' consistent with the regulation, FRA stated in a notice published on Wednesday. 'FRA finds ASPA has conducted appropriate due diligence through market research and an open procurement process to identify potential domestic suppliers for the products. ASPA's efforts included a market research study that identified one potential supplier; however, ASPA did not receive any responses to its RFP from domestic suppliers.' The Transportation Trades Department (TTD), part of the AFL-CIO, which represents railroad employees, had protested the waiver last year, arguing that because ASPA's bid request stipulates that the cranes allow for future conversion to remote operations, a waiver 'may serve as a back door to securing federal funding for a huge share of the cost of equipment that will eventually be converted to semi-automated or automated functions.' 'Put simply, this strategy, if successful, would incentivize procurements that operators would not have made without the government's intervention,' asserted TTD President Greg Regan in comments filed with the FRA.'In other words, the federal government would be subsidizing the near-future elimination of jobs.' Responding to TTD's concerns, FRA pointed out that the waiver does not set precedents and will expire upon the closeout of the grant award, estimated to be April 2028. In addition, because the ICTF will serve international container traffic that passes through the Port of Mobile, Alabama, the waiver will help ASPA 'promote American jobs by supporting the transportation needs of Central Alabama's growing manufacturing, agricultural, and retail industries,' the agency stated. Port of Mobile enters fourth phase of $104M container terminal expansion $231M rail project to connect Port of Mobile to central Alabama Port of Mobile awarded $300M for infrastructure, intermodal improvements Click for more FreightWaves articles by John Gallagher. The post Feds approve waiver for Alabama rail project amid automation concerns appeared first on FreightWaves.
BBC News
12-06-2025
- Automotive
- BBC News
Delays as A50 in Derbsyhire shut after lorry overturns
A main road in Derbyshire is shut to allow the recovery of a lorry which left the road and Highways said the A50 eastbound between Ashbourne and Sudbury closed shortly before 04:00 BST on said this was a "complex recovery operation" requiring two cranes and heavy duty recovery have been advised to expect delays and take alternative routes.
