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MTW Manitowoc

Participants
Ion Warner Vice President, Marketing and Investor Relations
Barry Pennypacker President and Chief Executive Officer
David Antoniuk Senior Vice President and Chief Financial Officer
Jamie Cook Credit Suisse
Mig Dobre Baird
Stephen Volkmann Jefferies
Thomas Simonitsch JPMorgan
Jerry Revich Goldman Sachs
Mike Shlisky Dougherty & Company.
Seth Weber RBC Capital Markets
Stanley Elliott Stifel
Mig Dobre Baird
Call transcript
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Operator

Good day, everyone, and welcome to The Manitowoc’s Fourth Quarter and Full Year 2019 Earnings Conference Call. Today's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Ion Warner, Vice President, Marketing and Investor Relations. Please go ahead, sir.

Ion Warner

Thank you, and good morning, everyone, and welcome to The Manitowoc conference call to review the company's fourth quarter 2019 performance and 2020 full year business outlook, as outlined in last evening's press release. Barry Senior and Financial Vice are and Executive Officer. today Antoniuk, David President me Pennypacker, Chief President Officer; With and Chief in Presentations. Today's can of slide a website the found our and webcast section Investor Events presentation, under Relations includes be which

time one and answers ask reserve queue and to and I a prepared after limit you to questions request has questions. the to to follow-up their like that for an ensure your will our remarks. We would questions opportunity everyone to return

turn Slide X. Please to

Before please material begin, note we statement our in provided safe the call. harbor for this

call, in of Reform on Litigation statements, that markets today's During are company's the forward-looking factors as business. its the Private based its XXXX, of defined and Securities assessment current other Act affect

could actual any or circumstances. the in does Manitowoc result events differ of implied more not any new obligation or one information, undertake future results The projections update whether to latest the from factors other revise others or or of any Company forward-looking a SEC statement, filings. materially actual as among due company's described However, to

that, with will And over the now to Barry. call I turn

Barry Pennypacker

the for year. percentage initial but EBITDA inventory over the more cash excellent EBITDA. was like of It our Ion, marking provide the highlighted a target and million. David hand essentially welcome delivered of performance, adjusted financials operational of margin attention result year for was good reduction, an half approximately ended We bring $XX Thanks, $XX execution on solid your by I'd exceeded of and which additional expansion we financial $XX year year, another the cash X.X%. to to on color year-over-year the of XXXX everyone. million and with adjusted On generation. flat million of year million revenue, will $XXX as second a

to year-over-year market point our that cooperate. A and a is off tribute if XX% great that represented drive in we incremental conditions too improvement not improvement far XXX all evidence ability basis to This is do.

almost of like employees accomplishment improvements a take I'm in to XXXX safety and Our the team financial business. some results. I’d one a making most few together year. proud highlight as the X,XXX impactful accomplishments working The to most result that of is was performance day-to-day minutes to of a the our

a Our most to important workplace. goal is incident create zero

the Our not but than good safety have better industry measurables that's been always enough. average,

continue assess, for stop, called our improvement We to strive for program through in which manage. our look, reduction stands workplace hazard SLAM,

globally. Our threefold SLAM activity increased to in XX,XXX assessments over XXXX

find factories. throughout cards all value can our at stream SLAM You of every

yet, While at determined we're injuries not zero to achieve we goal. are absolutely this

to completed that borrowing flexibility to recurring we costs expand which our of acquisition stable capital the March, allow options. to streams. us pursue We structure, the deploy while to new would now our our revenue margins reduced have Last greatly provide us to debt our exciting now and providing recapitalization multiple targets ability the pursue continue

each good opportunity, and of acquisitions we acquisition. been true to of earnings evaluating criteria one disciplined will year potential While talking our remain for ensuring any pipeline quarters, about few we a have opportunities when a accretive in have

as to invested response much In and of models and at returns are were capital. these which of are last from XXXX, in been past. the new we models continued products cranes Six utilizing customers the XX voice expect to by of our new models, tradeshow designed brought delivering their the introducing investments unveiled market our the were all providing our on than customer in quality outstanding new bauma has us superior the April. Customer quicker

will confident contribute CONEXPO six detail new share recent excited tradeshow cranes am on but and at the further Vegas. cranes we're market these robust Las more yet, our to Our to new these continued successes. I I innovation pipeline share in expansion introduce add models and the remains to cannot that

in another Voice vital achieving in growth our was strategy. process of Customer Our milestone

specifically time only by much the our time a Asia-Pac first team, developed exception the market. past, with than the in shorter in For Manitowoc’s met was excellent history, development for was was was also designed six with new month crane Not achieved demand the remarkable China the our crane customer tower and exceeding what and expectations.

was visit crane velocity. It actions top-slewing visited progress tower productivity XS, center in Last factory teams great the of crane adaptation touch obvious and XP eliminate this factory that our our in have in continuing and our and Wilhelmshaven, my France; improve and in month made by flow. the locations Lyon, safety focused to all-terrain we waste TPM, our Way I in and the our operations, Manitowoc aftermarket Additionally, Germany. piece during SMED France; Moulins, implemented accelerate

I organization. remain Manitowoc don't principles set my to of Way convinced If the values, the achieve however, guiding organization. goals with words Lean institutional thinking an shift is to culture reflecting and is on others, continues characterize in work part Manitowoc our our takeaway, that culture, our operational define biggest we my was do. and argue My the attitudes, used shared mindset that one practices the to out At can the results of plant no of business; relative The in Way. culture culture is set the DNA. that transform visits our the a defining

inventory in talking our in about has spend improve excess velocity in Manitowoc reached minute I efficiency through our XX%. levels three crane serving and one fill our mobile into and merged to of multipurpose wanted customers and rates In in training aftermarket order facility France. parts availability, to tower record XXXX, facilities a parts Lyon, service.

service stock global Manitowoc’s network from the experts from is items last velocity available attracted XXX,XXX customers Parts Our has and to to order are are shipment same-day we line become train capability. year. fulfilled improving our in and this the skilled shipped trainers facility order and some The highest lines continuously of crane consolidation. world over benefiting grow

skills center and value training Our centralization both gain the field service lot the center distribution the parts a their disposal. of technicians with at from from the

We improving add to we proud experience our our aid to they our of globally, streams team. that will the through use technicians we've which in on I'm as of crane, ultimately customers’ – an a what value of add dispatched discuss can aftermarket how to needs crane. help XXXX app already drive are job to technicians automate our – Great David technique rest next. accomplished when the with service, financial are our working Diag the results to as well the David? CraneSTAR which

David Antoniuk

Thanks, Barry, morning and everyone. good

X. Slide Let's move to

increase $XXX basis, year-over-year down QX the X% currency winter but orders business in campaign Americas or $X X%. On neutral orders more a of Our in The year. in offset our fourth a compared increase million, this million of region. orders, decrease drove were by than orders million, total quarter Towers to was regional last QX declines European an $XXX

of the Our on a the due The was XX% down region. Americas backlog year, XXXX over was currency $XXX backlog a decline mainly basis. neutral ending prior million to in XX% decrease in

currency our Net approximately incurring Net year and each $XXX rates. or slightly ago million sales fourth quarter regions year-over-year X% of sales a expectations in the impacted were of decline. with foreign were exchange decreased by from million below unfavorably changes three XX% in a from $XX our

and for dollars offset decline associated by $XX expenses. selling was EBITDA year-over-year. with quarter profit fourth adjusted completely the gross was flat the engineering reduced administrative The million, in sales essentially Our decrease

sales, of improvement. margin basis year of of marking the percentage XX a consecutive year-over-year quarter our margin sales, points improved As EBITDA prior adjusted to and over XXth X.X% EBITDA

related expenses approximately quarter, During million incurred we predominantly restructuring $X the to of severance costs. fourth European

diluted basis, year transactions diluted expense interest favorable an the Our per $X.XX were the per to currency earnings the increase improved diluted contributors the quarter in share to adjusted main from earnings per share. $X.XX. Lower coupled were year-over-year EPS. in share $X.XX adjusted and tax with On expense prior

we Moving along an to collections. the prior operating inventory driven in $XXX $XXX significant an with by adjusted was This of the our strong improvement as million in flow the over generated million, quarter cash year. reduction was cash liquidity, outstanding,

$XXX cash end outstanding million $XX improved on balance ABL. year with no Our by our borrowings to million

spite recap to the net billion, another full sales rates unfavorable for negatively affected foreign for Net by results XXXX sales sales and of was the X.XXX decline. to for in grown the year in year. year foreign our quarter operational would Net have were for I expansion year. $XX changes of the Now, million prior execution million continued due totaled margin like exchange the adjusting successful would slightly or year currency below $XX year-over-year exchange rates, X%.

previous of aftermarket our importance his increase in to our business revenue highlighted stream. our goal Barry recurring is remarks, As has the

aftermarket our improving. a XXXX, margins with neutral X% overall currency on by basis grew During revenue

performance. financial This quarter. percentage of XX% key total contributor to our over the a excellent was aftermarket our XXXX As business was a sales, during

million on EBITDA flat adjusted the essentially Our revenue. prior over improved XX% $XX year or

by of better improved X.X% our administrative year-over-year basis margin sales. addition, In and expenses selling engineering manufacturing performance XXX and lower increase. points adjusted the to contributed Disciplined to actions, EBITDA pricing net

Our an $X.XX, $X.XX continuing earnings improvement from XXXX. of net million. full were income diluted year operations by share improved adjusted per XXXX $XX over Adjusted

$X impacted year to $XXX use Our operating million cash million were net of a $X.XX. share by favorably XXXX. diluted occurred which for income. rate of cases, compared XXXX receivable flows earnings of XXXX, in In repurchases both our during share approximately this Full a conversion the adjusted the per in accounts adjusted elimination resulted to after adjusting program, in securitization XXX% year

million $XXX XX, to was as liquidity December total of our XX, $XXX compared XXXX. December of as As million

excluding million million, million full of expense million of expense discrete follows. to approximately adjusted million to $XX million approximately interest approximately $XX $XX Turning now providing Slide million, $XX our approximately $XX income depreciation to expense EBITDA restructuring of to million $X.X million, items guidance expense we of $XX approximately approximately Revenue as $XX million. $X $X.X to year and $XXX of tax to $XX approximately billion, of X, are $X expenditures billion million, capital of to XXXX

With that, call back the turn I to Barry. now will

Barry Pennypacker

that by We a David. industry is know Thank influenced numerous the one, crane you, factors. cyclical all

gas Looking an demand regions crisis at of to all the to products. world, error in conservatism America, what geopolitical XXXX, U.S. see in oil appears and our uncertainty demand. be and fallout contribute we're softening we for In developing in China, economic in market and in alone global The facing health North Brexit construction of not the election conditions. in friction from the a in continued of

and market In activity of retail America. carefully order activity to for be improved year-over-year. barometer monitoring the EURAF, conditions North QX CONEXPO expect XXXX are in We

and market We have. will continue proactively to schedules as we build manage conditions always our monitor

we our which spread outlook. levels, China Australia, further region, of a than demand in MEAP to coronavirus with possibility expected the plant shutdown, be may but In complicates longer the encouraged continue particularly to lead in

following proactively starting historical We're to it's our are demand not circumstances here show East our flexing signs in and recent idle long attain roadmap production the levels, Middle items our of focusing leveraging on strategic to past. to continues lag we life but but our sitting to behind structure in demand cost By are the warrant. our within schedules respond by as ready term to flexible changes goals. rather control, quickly

to a managing face of brutal cyclical Part facts. the business is

thinking expectations which market our you, of we like it conditions just XXXX, shows Our current proactively reflects but and globally, like history lower for in our with guidance we it will. revenue result we deal don't

ones play line returns, We Manitowoc customers, to With the market our and the we highest when positively continuing that operator, our the to position dealt will the we improve. open employees focus that and will questions. and by shareholders hand by up targeting for please conditions on are investments yield

Operator

you. from Thank of our And Suisse. [Operator Credit Yes we'll sir. Cook question Instructions] first Jamie take

Jamie Cook

I so. my of sort or assumed think just just with first the mid-point guidance, the XX% on decline, I sales guess question, good range decrementals, of Hi, in it morning. the

through, you selling was to a on better of me just hopeful opportunity decremental maybe just be on little margin we've just much. too a engineering the line I cut some administrative your it's can and So gross walk or the line. there'd more and hold assumptions

my for guess, So you. And I there. thinking about XXXX. flow then, I cash question, how of guess, second first Thank free you're sort

Barry Pennypacker

opportunity within our SG&A for always reductions. there's Jamie, Well, for us

assured, rest we flex this We certainly are need think And depending we finished best of the levers to but in business, we future. over what With cash free decrements, upon customers with we our are pull. to accomplish is level the giving regards to with our need that for we in look SG&A the that not the I'll market we pulling conditions flow. dictate, down have turn the you it what will, and or up David to as currently,

David Antoniuk

Hi, good Jamie. morning

XXXX, recall, to we if between recognized quarter you Just you, settlement. EBITDA previously expectation in remind flow we And decreases. through million XX% XX% an and favorable revenue of second communicated a the of legal to and $X

of the XX%. and it, the So believe midpoint guidance, just after within I decrement taking this comes would XX%, it range, into about of we and would you whereas the that to excluding flow-through reflect our give consideration using over

then in XXXX second cash free we're And revenue your to flow $XX free with our on million flow, cash current question million assumptions. $XX and anticipating based regard between of on

Jamie Cook

you. Thank

Operator

Next with question Mig Dobre will come Baird. from

Mig Dobre

on Thank morning a ask everyone. though. well, guidance side, you. the as Good Wanted question to about revenue

billion. saying way XXXX it, orders, are I I'm backlog looking XXXX baking is versus flattish going as you're year demand that call billion. Or some your that of at midpoint at erosion XXXX own it level kind of assumptions, the at be it, Is essentially in XXXX? to guidance the and progresses? you in So you if were of $X.XX look is $X.XX about, The your

Barry Pennypacker

believe, for the pretty year. But much do believe we be constant the remain backlog. we conditions eating we'll globally, in Market will

Mig Dobre

be how demand modestly guess, terms orders orders just I'm exactly demand, you're about you're modestly XXXX saying, be from to you're lower? lower. understand would for XXXX? of trying expecting backlog And what in maybe just thinking I to So pure versus

Barry Pennypacker

to flat. Modestly the lower

in be portion of We down said stronger past been as upon I we than talk I will do be But the as year order be know not able accomplish to from my expect we in their experience coming purchaser we that much a show. of certainly customers purchase in will mean, taking orders talking they hand that be what to on year. has this a expect exhibited We hand. that dependent what some historically As to last an prepared will with be substantial well basis, CONEXPO CONEXPO. regular to it we to don't dramatically. remarks,

Mig Dobre

anything second cadence half your Very thinking of production given in top or call helpful. of the first the own specifically? year quarter terms follow-up, about outlook, out are how And then half, to in you your terms my through line first

Barry Pennypacker

normal back We full we’ll believe we – from much half pretty over course the the last seasonality years. our what year, and say up first the four seen follow of have

Mig Dobre

Alright, thank you Barry.

Barry Pennypacker

You are welcome.

Operator

take Stephen with now our Volkmann from question next will We Jefferies.

Stephen Volkmann

Actually, question, to you base of in thanks of back on sort if decremental, view fault, our And guys. this assume benefits XX% Dave, of Jamie’s have of restructuring but kind could. add morning to and/or I’d good is XX% that would margins. go guess, the us many to had various we case we on back great like for that that. maybe I top Hi, performance. lean decremental to And obviously, then but did a the opportunity you XXXX and and margin

side, are guess now some And on I the Or out sort the why that forward? conservative to going question running on so just of market the you improvements is, low-hanging at are if significant of the margins? whim extent? the And margin and outlook there you make so, internal still can fruit of you're

Barry Pennypacker

long a say outlook on I the you, with for that honest term, But and margins would and market conservative we margins operating margins long and that conservative sit to is me team. is say I believe to term, believe, in to that be EBITDA here to XX% management this absurd. we still Well, need get only felt because business, I that can we're do

January. And went in " visited out would three there are of in month opportunity margin one that the single course, Of in, I not Oh said, of for facilities I our I Europe I of boy, facility largest as expansion." we say, is where

of in price on to take and lead the well. standpoint. say a no we're fact much the to will which that's opportunity, Way, rest? maybe have culture can David, up coupled when give with doesn't improvements say expansion margin Therefore, here out is we for the to opportunities back, that plant that have are why you believe, that, ever reduction the year offset by and I on global market the some from pretty So we you we pick we plant. revenue lift this our flat means, conditions would to the we the that with the sit basis, that But alive have Manitowoc price,

David Antoniuk

Yes.

So question. Steve, for much your thanks very

plan, year, to at business reflects in that we on and continues slightly order think the out the our later how flat down are right at right look I on most we operate depending we the that phasing think I And approach generally where we this are and when look a backlog of takes where now that our in on result now, actions to backlog. likely. will it

relative is intake contemplates year. time, order at but our structurally, to will the So and this is, as be point the company full where in this

Stephen Volkmann

anything terms a XXXX? be might that mix in for there margin of Is headwind on going in

Barry Pennypacker

Absolutely.

David Antoniuk

that Yes, product have we do are family. within product mix the issues

So a when being decline where -- for products I at products categories, higher-margin little higher-margin we family. within products lower-margin even probably a within product have are, for product that look our substituted bit

an play does this issue as mix So well. within

Stephen Volkmann

you, Thank guys.

Operator

next with comes Our JPMorgan. from Ann question Duignan

Thomas Simonitsch

mute. Ann. some Thomas in how was Could you oil and Americas of trended Good provide in products, on color I markets? if on That maybe gas just morning. by is just particularly the Simonitsch saw on deterioration further any QX orders Sorry, you more

Barry Pennypacker

Yes.

indicated Americas. put the sure on line don't in not in than that's how did I indicate prepared that why about. but increase have and out being the are how wait remarks, in we're that shelf that orders an comes were in comes more typically because details, much we CONEXPO we offsetting I quite So a by until CONEXPO mean, did of product Barry year-over-year the see our my And declines out give Europe basis, region orders on

in up were EURAF. they and Americas, in down were orders So

Thomas Simonitsch

on Okay, and just a CONEXPO. follow-up

potential show-related costs QX? in the the you expected But around the patterns can show. You noting order clarify

David Antoniuk

$X It million. is around

Thomas Simonitsch

you, much. Thank very

David Antoniuk

You are welcome.

Sachs. Revich Jerry question comes Your from Goldman with next

Jerry Revich

Yes, morning. good hi

you're you as be them to setting to as have been up what on on we You CONEXPO for about assuming manufacturing products embedded later but talk the margins. production? of built-in better -- the you're new products, margin, delivering able head deliver at guys those improved that out you a Can I'm deliver products just year, this into going

Barry Pennypacker

the provide that really, associated we cost – there's say of much not to get would in particular, the result new be But cranes. is introduce introduction. really, the nine don't color margin as to Well maybe revenue. prototypes, really more new And -- to back we coming we first a expansion the we really the don't the we account we're And provide product that because those David expect to way months six when what absorbed the But expansion overhead of margin a so that. from is with month after see crane, But truly on in we to is when prototype don’t we to those test could I need nine six costs that. then doing little is for us. that it period what that,

David Antoniuk

Barry, that, yes, to just And add Jerry. to on

once for crane. a the requirements lot of use do the material within what prototype with we of that period and we that for go So cost happening because quite we for cranes associated testing build that, up inventory and extended into go do that a everything. we cranes then then outsourcing level sales time we is an end up and lower plan for And all higher is, time use then what at of are probably sourcing we our ends a costs that, device then have those

So lower the time on. and as margin better margins it's on goes the get a onset

Jerry Revich

the means – better, assuming David you being line say does than replaced. when that that product And better that's I'm

David Antoniuk

Correct.

Jerry Revich

nicely for decline? And controlled the to SG&A line a in outlook me, savings anticipate drop bit? does sales excuse you – with top in the costs, able XXXX, then do SG&A that reduce line Or SG&A you XXXX. And costs little being given

Barry Pennypacker

reductions. We're SG&A going to continue to target

with have I particularly to to said, that targeted the regards emissions. we need in As still process transforming of we're take in portfolio the and place, Europe investments

dollar us a SG&A almost assured levers. we of SG&A ability of of that. out portion that fixed be reduction pull will rest not to and to that the which under not allow is are year far constant scrutiny every a for So the from substantial But, get will

David Antoniuk

just our Barry was fact said, by second And then favorably onto quarter that, Jerry, $X what that be to add approximately SG&A, in of just million. the cognizant impacted

Jerry Revich

Thank Okay. you.

Operator

Shlisky next Dougherty question with Company. from Mike Our & comes

Mike Shlisky

world give cases. parts Hey, you have good question get the us of actually this happening can was mentioned be some give in there parts other as In a earlier some wondering in price? And some in. opportunities back are world morning sense had to if could the that price guys. to maybe year better I whether what you you to of

Barry Pennypacker

always of we're appear But the looking things Well, doing that our at see the be price. to some irrational. are that you opportunity increase competition when to

we participate gains. targeted We have to areas share for to be able market in that

So keep It'd of not that price, is I as we forecast. in believe what to we have it to give in for the the to hard guess according be we that done is that's will be way obscene the going fight can much as U.S. to saying current revenue we've but will when market. down a some winded us as to we as our think

a And in already cases, our some pricing away from from we've of because some of crazy walked happens competition. that some business

we strategy, give strategically a not believe will. back need when to price, but we it's to, So me

Mike Shlisky

XXXX question, a of you of and the aftermarket initiatives in maybe just a to of kind opportunities basis, to glad year. further my other XXXX a follow see. us had great your my take And and Thanks. growth I constant sure. Sure, see for Do up kind for was think that on coming in here of is, currency you growth through are that there few strategy

Barry Pennypacker

Absolutely.

that trying are the in that a the issue the have our into our utilize so crane, that our, who parts into a can France, order a As to that remarks, Europe CraneSTAR co-located with men all Diag, the see fix give already we tried actually, when diagnostic I service service for now technology what is, people the from with taking cranes the he technician our a our built telegraph in dispatch call tool fill bit are in needs prepared accordingly. to Léon, we the tie to they customer crane him in can and are comes little

So of absolutely inorganically it's sure make the what acquisition revenue in past, substantial focusing And sales. percentage our on everything resolute on that aimed aftermarket. as strategy do is at a increasing to we I've our we are the stated portion is recurring of

Mike Shlisky

But opportunities buying clarify, the are less older and to if this for use are they just revenue year? cranes, parts just parts, to a folks additional there in new little their year choose revenue – up straight coming

Barry Pennypacker

absolutely. yes Straight,

Mike Shlisky

Barry, thanks much. so

Barry Pennypacker

You’re welcome.

Operator

Capital now question will next our RBC take from Seth We with Weber Markets.

Seth Weber

morning of kind take, for guess, restructuring what and take Thanks. looking Hey, that for market this are to point to million for facility aggressive some given it I kind would another conditions. some be I XXXX, additional guess, actions. currently level working at good $X mean, pretty you guys. of the muted will I XXXX, what more you to in down restructuring which with about expense get of

Barry Pennypacker

Okay.

North have in we one So America right. facility,

do going facility think, we're So rationalization in the not is in I that mean, say to cards. I to America just a North

order in prepared where do rates we're our with we're the that to a order the so to heard plant a Europe in be in to was European me also in card. our say not that remarks up also is think that going You rate quarter rationalization up, situation quick in able my

there. our expanding won't So that leaves China, any there we in restructuring be so in And presence our be operation will anything, China. if

go. beyond where So, the that, we'll million is continue you the as to to goes Anything going of $X year we on. update know

Seth Weber

Okay. Fair enough.

or has giving you is there that's one, call to higher, out? The question, challenges? some just there the product products warranty something that been there you'd Is moving second of there is expense site note – follow-up, particular particular Thanks. anything

Barry Pennypacker

I of to seeing right, of that you're year-over-year on as we rolling going specifics to conservative will that. the the would don't to the we're of that – warranty predominantly in things, product making approach be but It's some it's we're and a bit – warranties. to that. these things we some the field And we're be some Europe, believe just that changes some typically give on took where help say a basis. is of the We a out going product up

would I I teething issues but nothing it's extraordinary, normal is say Nothing products new a would on the normal and say So from Seth. structurally standpoint, just that driver.

Seth Weber

Okay.

to go back just question on so Mike's to And pricing.

Is question. getting was inventory function – the I How that Thanks. think inventory, a would it – because industry of guess? you aggressive too competitors there's are industry Mike's much inventory? I characterize

Barry Pennypacker

there's lot Yes. U.S., there's mean drive a our in it know I by we mean, and industry inventory. of inventory do their competitors we I the where store lot and a of there.

we You by inventory. Grove. drive Shady are because dealer The our lot our in basically of you don't is inventory not factories stock a see that you inventory see producing

view that America taken inventory, why we have So the a of the which we've currently. I industry itself much too North year. inventory dealer in in in North America does have, for There's taken America think, lot a this bit little North is

Seth Weber

it I Thank very appreciate guys. much. you

Barry Pennypacker

You’re welcome.

Operator

from with take Stanley Elliott Stifel. now next will our question We

Stanley Elliott

me you're the margins? you CONEXPO, XXX at XXXX stepping or of Is Hey, products that how event? the ship then that prototyping be what good morning going impacting but the on to show delta quick is can quickly kind guys, thank in. And products? on basis you within question point to going that curious those to later launch extent for A the

Barry Pennypacker

for as – products of the XXXX late as might of for beginning some of will of some products – available and the immediately The go one the might products shipments. the sale be

Stanley Elliott

then you've talked for – just I decline, level sales you there's $XX of imagine inventory some got obviously, support $XX about kind to going million I build launches. all cash the six Dave, the you've of but because free be of million flow, are new expectations Perfect. to would of got imagine the kind to what of

ending into about do how XXXX? inventory we So think

David Antoniuk

Yes.

great question, So Stanley.

have I And our in speaking, cash $XX in the it's of feel our of think, million one inventory, opportunities flow. primary and baked it. surely we into we drivers free of that's $XX generally to guidance million

Stanley Elliott

Thanks guys, very lot. Perfect much. thanks a

David Antoniuk

Thank you.

Barry Pennypacker

Thank you.

Operator

from Mig follow-up Dobre with [Operator now take a Instructions] We'll Baird.

Mig Dobre

on guys. I can there? Hey, can the comment also on I Is equipment Thanks. pricing. appreciate you And color color a there about us for quite taking if that used give as But the follow-up. crane know you that I'd well. prices. Thanks geography? curious be also bit new any by

Barry Pennypacker

our We U.S. longer. the will, very of is the job, U.S. liquidating the a outside you own We most used of don't almost a much opinion, track good of – inventory sales of of do did in pause, my We any most it that. if in equipment a There it's in – used

that has the now aggressive cranes that U.S. where nature the went Chinese, the regions portion their to Road infiltrated used the leave of do and cranes. the countries. Some to with Chinese used the to A substantial have lower-priced of of Belt with

we believe to Brazil, U.S. the for here South the as And particularly recovery, opportunities. believe a is are see cranes in still see we its I America, begin that continue believe there However, we that we market will that used

Mig Dobre

And I'm sorry prices? as far if crane I missed this. U.S. But as used

David Antoniuk

Stable.

Mig Dobre

it. Great. Thank Appreciate you.

Barry Pennypacker

welcome. You’re

Operator

turn does now like any closing session back the today. or additional to over And to would our I Mr. conference question-and-answer for that conclude Warner for remarks.

Ion Warner

Thank you.

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Operator

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