Manitowoc(US:MTW)2021-08-06 19:22Financial Data and Key Metrics Changes - The second quarter orders totaled $537 million, an increase of $299 million or 126% compared to the same period last year [19] - Net sales in the second quarter were $464 million, an increase of $135 million or 41% year-over-year [21] - Adjusted EBITDA for the second quarter was $41 million, an increase of $33 million year-over-year, with an adjusted EBITDA margin improving to 8.8%, up 638 basis points from the prior year [23] - GAAP diluted earnings per share in the quarter was $0.50, while adjusted diluted earnings per share improved by $1.07 from the prior year to $0.60 [25] Business Line Data and Key Metrics Changes - All reportable segments reported increases in sales, driven by higher customer demand [21] - The parts and service business was up 10% year-over-year on a year-to-date basis [91] Market Data and Key Metrics Changes - The backlog as of June 30 was $736 million, an increase of 71% over the prior year, with over 85% scheduled to ship within the year [20] - The tower crane business in Europe is experiencing strong demand, while the recovery of the European mobile crane market is lagging [16] - In Asia, strong demand continues, although there has been a slowdown in China during the summer months [16] Company Strategy and Development Direction - The company is committed to four strategic growth initiatives: growing the tower crane rental and aftermarket business in Europe, building out the China and Belton road tower crane business, accelerating new product development in all terrains, and expanding aftermarket activities in North America [32] - The recent acquisition of H&E's crane business is seen as a key part of the growth strategy, providing a strong service network and opportunities for growth in service, parts, and new product sales [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the crane market, despite challenges from supply chain disruptions and inflationary pressures [35] - The company anticipates that the second half of the year will be impacted by rising input costs, but remains focused on executing its growth strategy [36] - There is a belief that 2022 could return to a more normalized pricing and cost environment, although uncertainty remains [42] Other Important Information - The company has reinstated its 2021 full-year guidance, excluding the impact of the pending acquisition of H&E Equipment Services [28] - The company generated $9 million of cash from operating activities in the quarter, with a total liquidity of $454 million as of June 30 [26] Q&A Session Summary Question: Did supplier constraints limit production in the quarter? - Management indicated it was a combination of supply chain disruptions and pricing issues, with some disruptions affecting crane shipments [40][41] Question: Are price increases sufficient to cover known inflation? - Management expressed hope for normalization in 2022 but acknowledged ongoing challenges with rising costs [42] Question: What is the capacity utilization for cranes in the field by region? - Utilization in the U.S. is improving, while Europe shows strong demand for tower cranes but is more muted for all terrains [60] Question: What are the expectations for the oil and gas market? - Management noted that oil prices are slowly increasing, which could positively impact demand for cranes in that sector [115]