Shares of Manitowoc Co. fell more than 5% in the extended session Tuesday after the maker of cranes and other construction equipment reported mixed first-quarter results, beating analyst expectations on revenue, and said demand for cranes continues unabated despite “clear signs of economic slowdown.” Manitowoc said it earned $3.1 million, or 9 cents a share, in the quarter, reversing a loss of $3.1 million, or 9 cents a share, in the year-ago quarter. Adjusted for one-time items, the company earned 3 cents a share. Revenue rose 30% to $459 million. Analysts polled by FactSet expected the company to report adjusted earnings of 4 cents a share on sales of $441 million. “While we see clear signs of an economic slowdown in the near-term, the backdrop for a crane renaissance remains unchanged – crane fleets continue to age beyond historic levels, and the U.S. infrastructure bill has been approved,” Manitowoc Chief Executive Aaron Ravenscroft said in a statement. Revenue was lower than the company planned on “continuing supply-chain and logistics challenges,” and foreign-exchange impacts, Ravenscroft said. The war in Ukraine combined with the “severe” COVID measures in China “further exacerbated the global macroeconomic environment,” the executive said. “The recent acceleration of inflation, particularly in Europe, combined with further deterioration in our supply chain will place added pressure on crane demand and our margins throughout the remainder of the year.” Shares of Manitowoc ended the regular trading day up 0.5%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
