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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
Ann Duignan JPMorgan
Jerry Revich Goldman Sachs
Stephen Volkmann Jefferies
Brendan Marohn RBC
Mig Dobre Baird
Stanley Elliott Stifel
Larry DeMaria William Blair
Steven Fisher UBS
Call transcript
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Operator

Ladies and gentlemen, good day, and welcome to The Manitowoc’s First Quarter 2020 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 of 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 first quarter 2020 financial performance, as outlined in last evening’s press release. today David Pennypacker, and Antoniuk, Officer. call Executive and Chief the and Officer; Senior on are President Barry Chief Financial Participating Vice President

webcast Events and be which Relations Today’s of Presentations. slide the section under in Investor can website our a includes found presentation,

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

turn statement to for Slide Safe Please X. Please in this our note Harbor provided the material call.

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

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

And Slide please turn Barry. I and now the that, call to you, X, turn over with will to

Barry Pennypacker

day-to-day morning done well. a good for superb job to has and balancing hope Ion managing safe over personal I while the business and challenging perseverance their you, Thank The Manitowoc is months. of To team The everyone like I’d circumstances. globally start, everyone. thank team last the couple of

This morning, topics. I’m to three going comment on

results view short-term view long-term today’s increasingly of and our difficult our conditions. managing operating current QX Our environment, market and

in resolute We customers. and operate. communities, of and recognize sense these which challenge with a present top we’re safety, employees, families, and do discuss current to wellbeing working our of is ensuring suppliers, how through times the the the of like the health, situation First, Manitowoc the our urgency in The global pandemic. at in managing responsibility priority and our the their I’d we we’re gravity

committed COVID-XX order in deal to the three We to with crisis. key actions

safety it First employees and what foremost, all in do and facilities. takes protect Manitowoc the of our health to

has Second, our our and preserve our customers. cranes delivering competitiveness. keep economic are have sacrificing the employees actions without Thus the recovering however, services thirdly, for test a and Manitowoc our are not those been succeeding. far, We’ve our operations essential liquidity wellbeing recovered running future that we’re had or employees parts to for coronavirus. and to immune positive say and in And few pleased quarantine. providing COVID-XX;

with government comply to continue all guidelines. We

we’ve social a necessary our addition, where those when personal breaks activities providing employees needed, home to few. and have In times, name and increasing just equipment implemented facilities in to safeguards sanitation such employees possible protective from as requiring protect distancing, work staggering start

to customers aftermarket U.S., and managed we’ve critical support completely without our up crisis the and Our during provide service safety to maximum have world. for effectively parts the far shutting Thus around uptime support the teams down. stepped ensure in the health

operations to we a lessons best in globally, we’ll landscape. and post these our leverage resume successfully learned practices As COVID-XX operate

difficult times. these sheet positioned navigate us is well and Our balance to solid

weather no of poised margin amounts maturities liquidity are a fixed we implemented debt markets We’ve profitability. years, have to with past strengthened, better until and sufficient the further to We capital eliminating cost, and continue during structure Manitowoc us have positioning prudent significant transformed when expansion XXXX. storm. four the And significant achieving

comment X, quarter like first Slide performance. to our I’d on Turning to

great As year we David EBITDA start an a had from will to the perspective. explain,

COVID-XX, ability of hampered which well despite our ship the headwinds cranes. to executed operations Our

of February. plants temporary Our while the operational, U.S. China a factory our in shutdown resumed remained production after month

mid-March. in facilities major Our closed Europe

remainder in reopened this great have of XX, is week. on reopened France, Italy, April and factory This Portugal, German the and news. factories our Our

operational. will it anticipate become take time However, do we some fully to

QX and from out standards into QX in variety new related of implementing new the ranging and a Restarting social headwinds as additional delays. construction measures, of the comes safety challenges see quarantine we with and chain disruptions site distancing normal. transition We supply

closely through our to this employees, working customers suppliers, period. manage We and complex with are

comment I’d crane the conditions. Next, on like to market

we As explained second declining in order XXXX. prior rates calls, saw of half the in

first the entered we with of with challenged the the the global CONEXPO into March in in market The quarter, and we a a the Orders to the of had comps markets for line to global second those April. related market of all show. in half demand. including received and the oil end expectations our gas As recent shutdowns anticipated coupled pause due set softening were crane trade pandemic the drop quarter cause during

sites Fortunately, around construction are relax work. going the global to quarantines back to are and world beginning

has in In to construction China through hopeful and business market and see returning we Our we Korean quickly Germany, the quick recovery. normalized, to South a quarantine are continued the projects normal. for work

and progress weekly day. every see encouraged In construction marked week. track our versus hit prior seeing such sites we’re a open We as markets’ the are improvement to hardest France,

the see in in starting we that and is increases Finally, construction reopen was U.S. to are deemed to beginning economy non-essential.

order the of necessary our As changing steps adjust match we schedules production we are anticipate to levels taking demand. continued to intake, soft

we increases, Despite although repurchases, future by critical mission In expenditures suspended continuing we times, have discretionary XX% position growth. strong. our fund eliminating addition, difficult reduced cut share very spending, are to liquidity for remains salary these programs based capital

end, with revolving As borrowing a credit liquidity million approximately we no had under $XXX of quarter our outstanding total facility. of

to continuing revenue be crane In profitability, short-term the summary, and in expect declines to but expect we difficult the with market rebound.

weather to playbook storm. our execute will we However, the

XXXX we products and couple end Due of recover. that when sheet balance uncertainty, our markets healthy for us guidance ago announced of year. capitalize position we we’re financial weeks economic remainder withdrawing to focus, a market to well leading the operational Our the

clear our outlook. business of We have will reinstate when on line sight guidance a we the

over And with further for I’ll results. to our the color turn that, financial David on call

David Antoniuk

good and Barry Thanks, morning everyone.

move slide X. Let’s to

partly basis, year. compared of $XXX the XX% XX% QX with were offset last or driven demand decrease million, Americas, most of orders year-over-year a orders by million by of down million $XX neutral quarter Europe. orders improved to in orders first the softening decline Our currency a totaled $XXX in On

had During the in and approximately quarter, Europe the cancellations million $XX order of Asian we markets.

ending was million the of The currency neutral the stronger in year-over-year delays. was shipment segment, $XXX partially year, a down by Americas a and QX increase on basis. driven over mainly XX% decrease backlog orders in segment, backlog COVID-XX prior XX% an EURAF Our to decline by offset in the due

$XXX the million decline exchange sales the net XX% in sales first largest in a reporting quarter by entering in sales year-over-year shippable changes segment ago our segments was rates. backlog The unfavorably the in a Net currency decline. three year net decreased from or X% approximately million by of from impacted Americas with year-over-year each driven lower $XX foreign year. of were a

in Additionally, COVID-XX net associated resulted impacted pandemic, closures which plant frames the with approximately shipments negatively predominantly sales $XX were due by the EURAF in and of delays million shipping lower to segment.

by sales margins which a flat percentage net from Gross basis, $XX net mix sales last were due of to up mainly to of aftermarket the decreased gross volumes. on million profit revenue, year-over-year, decreased XX% driven for and XX% quarter, of increased percentage year-over-year, a year. higher

decreased to trade show short-term the and approximately expenses offset lower sales the March. costs, partially million costs associated compensation lower in million incentive CONEXPO $X headcount engineering by and Our to administrative $XX due with

sales, was to amounted line expectations. our first adjusted As $XX which EBITDA of quarter or million result, in X% with a net

Our year-over-year performance reflecting decline and flow sales was managing through costs. on the XX% our good

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

an a comparable loss diluted quarter diluted was of a earnings the in primary share income of basis, adjusted $X.XX lower per of loss sales per volume. loss year-over-year of the year. earnings to driver the in The on per share the reduced share $X.XX, GAAP prior was compared period. in diluted $X.XX Our a versus adjusted earnings $X.XX of was the

interest million offset last was or This operating resulting from per $X.XX first refinancing. expense lower quarter $XX was of partly use share cash million. adjusted of $X debt flow year’s by a approximately

anticipation inventory of approximately the due also inventory is the delays, as summer shipment million quarter pandemic. increased we use construction $XX first by always Our cash in the build Hemisphere. a paused Northern season in to of

no by as year-over-year in AVL, backs; million XXXX. March approximately quarter, $XX million $XX we quarter-end million of buy the shares at have outstanding repurchased the under approved $XX repurchased including cash XX, our with the on outstanding we $XX balance improved million to X.X Our million XXXX for total plan. million, borrowings compared $XXX to $XX million

repurchases we Barry As at have this mentioned, suspended time. further

another million an revolver of million of quarter, the plus availability. capacity million debt increase of XX, of borrowing was XXXX. $X March from million $XXX $XXX end Net million had March of liquidity of total at credit, outstanding other $XX At letters we XX, of $XXX the

maturities for the obligations any sufficient liquidity we to not debt future our our XXXX. have significant do meet remains foreseeable and until

our refinanced year, debt we the we borrowing. reduced when reminder, in our prior a cost As of

ease agreement an access to affording debt our us the simplified covenant greater addition, In compliance liquidity. flexibility

a and withdrew our With due amount March. XXXX the to pandemic, of at market we disruption financial end significant the guidance of uncertainty

and second significantly full-year be will results quarter expect our We impacted.

our we’ll As demand to as supply in will resume as guidance facilities do full-year update feasible. chain soon our and so manufacturing operations be we a and and position stabilized, our better

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

Barry Pennypacker

Thank you, David.

and of this sustained the of the of, of many petition Commerce Investigation of that XXX filed mobile U.S. threatens Commerce crane Manitowoc As surge, a investigate Section urge mobile you a imports domestic a to aware Department Department recent manufacturers. initiated are imports. crane to

the grateful to these national their investigate security. imports are clear and department We the to on need saw impact

imports domestic for industry’s longstanding support military protecting national Our commitments therefore petition American about our and and all is U.S. critical supply the These workforce ability jeopardize undermining security. America’s preserving the the to U.S. to military. infrastructure, our cranes

compete and playing American this field. North wish a simple. level is in We motivation petition Our to for the market on plain

that of my me XXXX we from conclude saying strength. a remarks Let by entered position

our progress balancing implement and We’re safety while adopted quickly to customers, and managing and realigning with We’ve of demand our lower the to the flexibility agility are needed by communities. business business employees, to further in prepared second proven disruptions need the ensure the and we through the including actions team has unprecedented place experienced this significant monitor a Manitowoc successfully businesses leading in pandemic. to record quarter. the This through have through leadership manage we as measures track

We investing business. on sheet preservation management cash are in the balance prudent while focused and continued

our the financial that shareholders four on Way. confident our will return Manitowoc and well-positioned stronger be the key will priorities are to based principles strategic We using for Manitowoc of deliver performance demand

Abbey, line that for open please up questions. the With

Operator

take with And credit Suisse. Thank Cook our you. from first [Operator question Jamie Instructions] we will

Jamie Cook

everyone guess should then question help some discretionary that actions, there offset quantify of of question, and some is whether Barry, second much et Hi, we’ll just much is theoretically hear April and my were any about how what when may sort good healthy you’re and took cetera, them. I can there probably the understanding but just And glad Thank more then can terms and you’re contemplating understanding color you’re you. orders and longer-term declines way you you in weak cost little morning well. volume my down first how and a seeing, orders, any were of from I cancellations customers. seeing guess very on you give actions

Barry Pennypacker

that been But We for is pretty the of liquidity customers other with be in quarter. have instance. April welcome. only I delay month much orders on were like; in us first has April, the percentage for us some for market sales we to very the to seen non-existent. through not, of of cancellations we some the say which Jamie, just terms potential payments is April Since come rose stable. saw else number You’re can expected. aftermarket issues of What have than can I everyone the and very some ask that, relief X, high a say pretty

cost we the identified – short-term as As in around $X the million $XX far actions million concern, taken somewhere that to and have of range.

as actions have available restructuring head, rear ultimately, preserve we’ve this be longer-term to programs that to our continues outlined have its scenarios have we yet and our cash. multiple to multiple ugly But that implemented. We and pandemic future

Jamie Cook

Stay your well. appreciate insights. I you. Thank

Barry Pennypacker

question. You Thank too, for your you Jamie.

Operator

will question from we next Duignan And JPMorgan. our Ann take with

Ann Duignan

good morning. Hi,

Barry Pennypacker

Ann. morning, Good

Ann Duignan

your QX, inventory cut and expectation by year-over-year. into can expecting talk to free you We were cash flat little flow $XX be you’re a million. for And about you about bit come

you what in can cash you to in QX? positive So, generate this can free actions take inventories and/or environment reduce

Barry Pennypacker

our to I to operationally, are let be. the deal you the about with I’ll tell Manitowoc with our be talk keep into of the to but lean that where the aligning needs absorption, our flow we’ve actual weaved them Way David that what trying through QX, flexibility in that will cash inventory goods we as a it are. principles plans customers’ through expectations with to is implementation perfectly the company of build This finished aligned result not can

react accordingly. will We

to build that, different year. you that take rates the manage to And actual the will it turn are use us some usage it more tools I’ll all and cash the David accordingly. to We over of available on through down, we different we’ll countries, principles operating will with the give throughout color

David Antoniuk

Yes.

Ann, thanks cash and with the cash slight So in a is a Generally the larger QX. in and speaking, of increase cash in QX QX QX for question. company in increase in user

QX how we be impacted. the a bit little to our determination order The to going seen through. line use pipeline cash. be that So, flows is is a be expected of outs being sales and going top of to We’ve anticipate push

will yes, speaking, use a we generally of So cash. be

cash all QX. possible. extent a We’re mitigate user trying will in all, to in greatest to we be the that But

Ann Duignan

in And week, no meet but as I QX do to money I going make so way or there’s would you say, to expect to… was

David Antoniuk

always mean, in on speaking, we that really upon an money our we’re time. of EBITDA and I make strive generally this that’s point at factors to control dependent out basis

really construction the out at to get door it customers what sites. the is we dependent the So, top-line can on and our

Barry Pennypacker

Europe come to mean sites us, what product then to. Europe, job to as in particularly the in which I construction tells ship back and we customer the life, these build happens to site order Yes. is,

a that nearly seen now, to of amount last a would based correct. telling the June, may absolutely week, but I If of of in course data. As little normal close through historical the month of this say to – where continues is on the normal activity product the to, over where amount we’ve not ship and David’s then us, a month

are assured get product. They be work just in still we as task might but I rest interested tall, positive as much that customers talk that’s that our we’re it still in want but we to too our will product to to getting very to We be and EBITDA, strive think our do. a using back

continues So, watch certainly it to that. evolve, going to have we’re to just as and we’ll to communicate it try

David Antoniuk

Yes. And very QX. just very, have difficult year-over-year I add, mean in to comps we

imagine, from in on So, significant top-line a year-over-year we’re see going I deterioration the a to would basis.

Ann Duignan

cranes and but and XXXX that. And you important through quick important were can appreciate many it how in one import Germany? follow-up, cranes were filing I on make Yes. just from you Commerce, don’t Department Barry XXXX the of the tell how us – to in mean, many just

Barry Pennypacker

issue certainly petition. We this Germany do Germany, facing that from to import but we’re cranes regards isn’t necessarily the major with

when to a that customers first We’re being about facing from never that or would even think anywhere our petition, – that to back in were gotten based this basis. the global where we’ve to on say came board a able technology from I XXXX, on feedback close quality trying delivery on perspective we I in compete

all I in the product material, when us cranes the feel portfolio weights labor up when United is level for underwritten costs, similar those But a are our of below policies I what for know field. for we that. dollars that, to course the of being I very said And it���s of the and best countries. of and Over see I spent similar types years, the different that now, cranes is earlier, workers. when of see time that from like playing are I the world. stand of I some our by to very And one local of it’s States want three being fix XX% imported millions tens last have to U.S. we’ve cost, our

for our now. a But being hammer. are would in manufacturing crane a a when and States, a in they this a money need anything these and financials importing are we to state-of-the-art services level is when losing making we situation, and see crane America, sale more field, And seen products than playing in I And agreed commerce these far, and nothing you department other and just a our imported to so what time for There’s see us be than believe to. us. problem. submitted that costs United have the some price that equivalent of evolved the certainly irresponsible home of knowingly it’s hammer, the have their little us cranes, and country not It’d happy you money – North because there companies where We’re I’m has that data a not with in are act. we’ve that where call

Ann Duignan

help Okay, But would dollar, Barry. case doesn’t I either. with strong fill just the it your

to it line. leave I’ll and I’ll So, the thank you. back get there

Barry Pennypacker

are not the import to exactly to commerce the order You’re is absolutely national U.S. concerned our that for known States well help things the The protect with of security. that’s does there of strong and to correct. that department are about that manipulation cranes very has however, United case; countries type our currency be in

Operator

And from will take next Goldman we Jerry Sachs. Revich with our question

Jerry Revich

talk I’m morning, about Hi. doing by you rolled April, talk and performance. could strong about about first what the growth nice surprised Can the pleasantly wondering if Thanks. aftermarket the you business? Yes. the programs tough a you quarter, environment in talk year-over-year in and you’re in – pretty just everyone to that then well. business hear the of we performance Good growth can just The all aftermarket out?

Barry Pennypacker

a The business aftermarket remains in year-over-year Yes. perspective. strong April from

and cranes a paid on Europe revenue. job the percentage largest were the is our aftermarket sites, part erected a of the increase performance which amount number by that and we we’re pleased was that do, are in that in which was parts. driven factors, aftermarket had in So, significant working of of in requiring of The in are get number we that strong a very means by but situations to of quarter first being that one cranes

a increase safely that So, job cranes site the overall our required ensure people erected. significant in to construction were that

Jerry Revich

And April, what sliding – probably be scale strong on Barry, in just a means. there’s of pretty a terms clarification downtown strong for would in The April.

in bit more when you strong can quantify if you mean Just that you a what want just say So, say about April? to. you

Barry Pennypacker

our April Year-over-year, that aftermarket Yes. in affected aftermarket our much. necessarily – were not dollars percentage

Jerry Revich

at when in with had global up you versus for you your competitors even competitive nice improvements, chatted standpoint U.S. that really quality the that to So, for now the having made stands square can have is potentially share point be Thanks. because the been is And CONEXPO, somewhat up? ground market Can market were contracts? really discussion folks we in folks out about pricing competitive, the the share hear. That’s lower? point the we to on just that pricing much that, just able given mentioned that you the products? expand you you

Barry Pennypacker

Yes. very to brand Manitowoc product areas ton in in buying U.S. we over of behind eight through targeted because enter where we course to truck America, have XXX successful ton, I decided history years has our last gain paid portfolio. us the Grove our investments mounted where been value the seven product, been it for share is crawler of portfolio mean Yes. course products, North our people targeted us. down to the the road. for the XXX substantial share. successful that The We’ve to in to the our our that and products premium the in very refreshing market the XX brand XX that sometimes the in amount name refreshed. necessity market TMS been gained – the was was the market have, years be know over the a last years five over there of of of of has years two old before the The the have of of

government And guys is exists bleed still have But the out the are we we’d I that the bleed react some – in to Manitowoc. there petition. share for cost red, guys have us what And sees pleased – we very said, disadvantage I’m a and that phenomenon yellow the the also. is that’s of share also. this imports, we other with to but it did our with technology there It’s our that as exactly that so the customers That to substantial. way and through that like products superior time when

Jerry Revich

discussion. the Yes. I appreciate Thanks.

Barry Pennypacker

very welcome. You’re

Operator

our take will Stephen we Jefferies. from question next And with Volkmann

Stephen Volkmann

guys. to All of I’m be of on to kind of right. terms provide you little asking as help cetera. outset, expand circle in who your good to that at Barry you’re them something kind little these bit few wanting Can just on et strong, a tough to a back you you bit the just not times? customers, your seeing might help ability and morning, that where said a

Barry Pennypacker

let basis. I’ll finance really – on Sure. that David manages trade under day-to-day a which falls our group,

I I’ll answer for David So, that think you. let

David Antoniuk

morning. Good Steve. Hi,

have financing a I So, of asking financed this. whereby companies onto place, locked one, lease seen in on the they’re cranes, think it’s but their instances, and are we’ve on lease. items there’s end a those and two there lot is Europe, and that number out little Well, any for the just whereby U.S. extension typically in cranes bit are Manitowoc that it’s for extensions XX-day different. of a a the

XX bit. are regard been a the not But have currently the receivables request region there’s payments customer we XX typically overall, new extend the anywhere to With from out to little these a in financed, to while. there a depending to they days upon cranes XX that and

any So, would have in are at valuable that valued say the – overall, time. the of the point more on cranes we books receivables significantly value I the than

Stephen Volkmann

then do. have right, sort probably Okay. are gas shorter-term which issues, I’m oil And but longer we you can and for obviously, then may wondering, have this two the with the All is terms. we a Thanks. this COVID-related issues be That’s but question not great. helpful. Barry, of and maybe issues you, something

right and of that how be those kind that of much a two gas headwind COVID recover; you kind the might I and even curious oil after around if I’m end mean of and term So, important I kind passes? one markets, how longer you be have commentary assume to will now of any is how a

David Antoniuk

I’ll two different in ways. that answer

of saying and talked ever first share We a start I’ve our order, me and off has business, very the sizable our Middle oil loss one have been it on East. First, page it very were since no signatures and let long close by specifically, a gas market would to had it the about here that have here about but out. for directly we We That in a secret. the time in It in the Saudi of that is success to Arabia. backlog. in been to prudent went in since delayed, Arabia has not our it keep been first oil been has not gas our penetrating been feel canceled. patch. Saudi oil But that and market is I’ve

line in U.S., product particularly all-terrain our that vehicles of which one come Secondly, from it is ours, that the affects Germany.

see have a did we – going going factored number were year, – oil, is this put be saw of year. $XX we us. a into did a a this significant we – barrel we see what a So, all-terrains be to U.S. our with that’s And that and plan into to market to when shouldn’t but reduction not year the last fortunately, impact year

crane prices, will to oil longer-term, driving a you to again. We space to and is sub-XX for age The solid. again, that is get the But that in We ready going when spur are the I consumed gas amount get got as long-term oil satisfy. have are being and activity nil. fundamentals economies to moving so, oil high. investment happens we’ll mean, demand uptick you activity I got the any be cranes I in virtually relatively aware think the spur well people to think got any again. we get be in of –

stand get again. by oil and rolling enjoy economies get So, to we’re again, we that all people have the watch levels that get up can and just driving again, prosperous going to to and back sustainable

Stephen Volkmann

Okay. on. pass you. I’ll Thank it

Operator

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

Brendan Marohn

is morning. for Marohn Brendan Seth. good This Hi,

projects how You your customers, mentioned orders sense have the many Saudi being pushed delayed outright canceled? with including a being do you in Arabia. for discussions are one versus simply being out, In

Barry Pennypacker

large portion, seen particularly any I and I’ve large with partners have in have seen right. But and them projects on, dramatically A the we not move North America. working been that customers our canceled. to the of

Brendan Marohn

provide, Okay, any I one of if there’s on pricing? you terms thanks. the color And I crane used can particularly guess may, if in more market,

Barry Pennypacker

I stable. think pretty, pretty

down, an But the I think in there’s there’s drove of exiting the price been – that market because I’d that happening brand. that now stable in fairly have some say we’re fact the particular frames seeing. driven right

Brendan Marohn

Thank great. you. Okay,

Barry Pennypacker

You’re very welcome.

Operator

will question from Mig our take We Baird. with next Dobre

Mig Dobre

Good Thank morning, you very much. guys.

Barry Pennypacker

morning, Good Mig.

Mig Dobre

just earlier production QX tough, pretty you trending sense comments, be obvious going sequentially? trend your sequentially us revenue is that to to for or So, can thinking give trying clarify might you’re it’s a your but here how is how

David Antoniuk

as anticipating, know, So in that we’re Mig, $XXX I’d sold say we you about million sales in QX XXXX.

down. So, I significantly that will be anticipate

a plants just were European reopening. indicated, lot Barry our As of

adverse are challenging with variances moveouts. which the plant going to associated have be going we’re closures, coupled to with So,

multiple it’s But to in So, regard. which we’ve since guidance, that we’re scenarios customers. a wait-and-see – run as withdrew we

going able fair to to going be are in we how a QX. big that’s We driver to and ship in to be

Mig Dobre

is it We us for that sequentially. down Fair think fair are point, probably going revenues know enough. this be to magnet… the at to But don’t

David Antoniuk

it yes. but yes, likely if yes, it’s year-over-year. Sequentially, as be we’re sequentially, down Oh, sequentially, down. as won’t there’ll there’ll be yes, – dramatic be obviously, as

Mig Dobre

test Okay. EBITDA is stress would at of your you an from so revenue on, And and be as and us, figure ran you analysis breakeven share where standpoint? with that a sort can you there

David Antoniuk

that past. We’ve in talked about great question. Mig, the Well,

that that low that levels where time, the market to capitalize we’re downturn contingencies say will breakeven under say, better company but did at to scenarios. what breakeven say we I’ll be we I run, standpoint from triggers various Each say, – as a when can to we based we At at, want maintain position pull this a run would have scenario I’ll to is not say a we the we is, will rebounds. to this where levels. our have We modeling upon liberty be abnormally can has, what I what that do, exits we in anticipate

Barry Pennypacker

think The you we’ve through that disclose I from will from that agreement we’ve less right. our that the reductions can’t that, of done. Mig from taken We I would really the SG&A we’ve refinancing tell is, but it’s I the actions closures of substantially say debt plant done, we’ve done, way David’s some the

it substantially the has it’s lower been than So, past. what in

Mig Dobre

That’s for or I’m is That’d maybe, I wondering Barry, to RT give this your us me, Thanks. fair. want be it. sales, a XXX. what appreciate to guess Last you frame however this you on sense comments business important percentage at can question I point, business helpful. how your you for of just

Barry Pennypacker

Could Mig? sure followed you your I’m not restate I you. question,

Mig Dobre

Yes.

of So, that how commerce they action business. understand them? about you. concerned, What are department with of on earlier, I’m as talked important to businesses specific kind relevant, as your how these products to far your associated are trying you Thank the

Barry Pennypacker

Well, you I tell but won’t the you that tell lion’s the share. percentage, it’s will I

Mig Dobre

Appreciate Okay. it.

Barry Pennypacker

welcome. very You’re

Operator

with And we question will Stifel. Elliott Stanley take our next from

Stanley Elliott

how think thank you iron a the have been really on about services in services past everybody. have Barry, always years of that? diligently is kind really Just the seeing Is proprietary piece. more more curious guys couple lot question an emphasis the prices for and expanded what put and the could the or to offering? bit your parts about to voices. kind you you you’re working parts. that of your over guys of of are business morning, it Certainly, Good talk a that the new products to your taking nice little hear down,

Barry Pennypacker

Wilhelmshaven When secret early Stanley. say But supplier Shady of a that this a that Grove it part or XXXX it’s would a the say, call I around part. in back get Well, in combination X-XXX crane will see, let’s in XXXX manufactured items you in no Germany, was timeframe. you walked aftermarket consumable of in XXXX, either the both, to

Now, allowed if we our to for you’ll you disposable and because X-XXX grease spare for we base our for participated types not of that. take typically items filters, cranes, parts oil, other that walk oil had in, around call other Manitowoc’s see supply

with effectively price we in that in in that results. So, is think paying think also of internally and aftermarket to up change help that it’s past. not and number dynamic saying our we’ve We’ve to showing decision tools us I would be consciously off. a made a that, remiss I used the I dynamic, did our

David Antoniuk

to what growth that made category. our in to aftermarket the add we’ve Barry just actually Stanley, says, on in investments support And inventory

Stanley Elliott

are secondly, Any be Great. the to broadly, programs, various that beneficial of you’re you, about? markets more kind anything all would operating business? stimulus you that within And hearing of what have then the plans, sort

Barry Pennypacker

that is places things happen type that that certain to I has as Germany, plan, we’ve would with as like think In Germany, Well, plans done talk allowed – are France, I I yet, stimulus familiar you’re am but stimulus how about a I’m I we stimulus I not – hearing too in talking if growth, hearing, be we Korea, what that seen U.S., know a lot programs for But we infrastructure the mean, with about will any Italy, don’t far think those the COVID-XX positive. offset have are are more country the expenses. yet. familiar actual

Stanley Elliott

Thank guys. Stay safe. very Perfect, you much.

Barry Pennypacker

welcome. very You’re

Operator

will from our DeMaria Blair. next Larry we And take with question William

Larry DeMaria

status cash let’s Can have us to Hi, good from on; changed payments, cancellations progress, any current some of the deposits, terms, had? morning of the et cetera. say that return just and had those small you you everybody. Has you remind

Barry Pennypacker

cancellations. no, deposits any the mean Larry, have didn’t cancellations; I any on we of those

a canceled that orders XXXX predominantly late XXXX QX. in customer So, in just was the the – it

So, the answer is no.

Larry DeMaria

or trying the new is them all there, are And with to currently the now you I’m with Do in have risks some backlog, orders cetera? et just of they there? of terms understand deposits

David Antoniuk

norm. the circumstances customer norm. and orders depending on the the that’s and are not on exception but the customer, the deposits did It the not Yes.

Larry DeMaria

the is bit, secondly, because that have you’re attached part little name any just picked to I’m obviously which holding in hopefully the obviously, ship. risk the inventory inventory and it considered in delays, helps the there for that’s and name and understand curious, is up there a inventory in then to This in all speculative there? backlog of again, dealer maybe, in And customer or does trying backlog. the your then there’s rather, orders Okay. well, the

Barry Pennypacker

of done And disposing course not about David his in worry have years, the the we of saleable. because and team very and job of stock. make last don’t would considered a Yes. inventory, the don’t risk three inventory over analyzing good quite frankly, the that the be

current ability as very sold, high add, and David? its inventory very, Anything be far a give of our So, to to the I very, as that value confidence.

David Antoniuk

schedule then with say Yes, adjust a we in on build that we do would circumstances, marry I earlier, what Barry Larry. would then but we that our general, And to, intake I we to our that component as not basis, and plant. the we there may say is order There key build inventory. schedule by have of are build at we where that build continually something, said look daily up that to accordingly sell. our strategically

Larry DeMaria

I’ll hear. Okay. period. you’re any inventory with to the if there patch, andjust maybe, any now? last flows financing. customers right But mean, and reason, obviously, if financing there – not are I want are that not energy good are ordering thing, issues you’re cash your for Good some with out in issues

Barry Pennypacker

generally, that say would with we pleased we’ve I how finance. been

As Manitowoc a to have program we we with financing. that great operate underpins have a the you relationship finance that and continues that company know,

them point satisfying needs we credit while So look can. look worthiness at time, those do look at well we customer’s a best for and at sale, as servicing in as we at this

Larry DeMaria

you. Okay. Thank luck. good

Barry Pennypacker

Thank you.

David Antoniuk

Thank you very much.

from our take We’ll question & Company. next with Mike Dougherty Shlisky

Barry Pennypacker

Mike. Hello,

Mike Shlisky

Sorry, guys. guys. morning, Hey, good

this remedy you’ve tariff the first been petition about, and up of may a also, going for that that. get Want to company? time nothing past to And your a talking there? you parties about it tell Sorry it follow and overall is out kind past think on is what settlement process Is the what’s simply any out? play the XXX whole us all is of maybe on really ascending for there is and to

Barry Pennypacker

of The the in States. data revenue is see if concerned, commerce is XXX is There gathering. as United go XXX% But to data that you And And so. on potential the be for hearings. zero days. could is I the XXX% to at the fit from outset, based so to the would they that Mike, also the the the lot come but at process President is, far that point, that it will XXX this of a discretion if is increase days that There’s provided do out as days. him would could That’s things XXX% And be the timeframe. tell the could department. congressional he up can days, this, XX of days rule. to they, timeframe done up more There of it XXX within probably be

Mike Shlisky

Okay.

got Okay, it.

here. the wanted also performance your quarter and and get maybe, large detrimentals ahead So kind looking touch to impressed on to of XX% in the very

you you I that give where think just that as quarter, what taking down, QX of kind any you CONEXPO commented during I just kind the was the in quarter. here. if get can kind stronger you for curious framework feedback the could environment, to and given happen only us XX% in might QX of of that’s place detrimentals, the I’m be think we’re it an had might this declines

Barry Pennypacker

have that we of to kind the year, of articulated we stay associated and to just we typically QX always everything to we’ve benefit those I overall, downmarket, with within we decrementals say $X Mike, So over in one-time within do guidelines of consider the possible XX% is would last want Understanding guidelines. would settlement. legal our million what stay the that did a norm. XX% on that

Mike Shlisky

Okay, enough. fair so Thanks much, guys.

Barry Pennypacker

Mike. you, Thank

Operator

me. Excuse

take Steven with question Fisher will our UBS. next from We

Steven Fisher

Thanks. guys. Good morning,

Barry Pennypacker

Good morning.

Steven Fisher

the Good call morning. on got late. I

already, XXXX covered in up with they CONEXPO, No addition that plans order. to customers robust would to in you can from So, repeat you catch had guys afterwards if any robust telling curtailed orders for this just need XXXX said you up and taken the were XXXX it, offline. XXXX but that Barry, you I at be

they telling anything how parsed about those you now orders might out? be So, different are

Barry Pennypacker

No. looking long choice, that XXXX, are are absolutely they forward exceed The had that getting customers stability think in has but potential market, loyal very, my I time delay think CONEXPO. said. we and gas back Sticking exactly expectations with again, thing I only had a would happens Because is number orders we some the discussions what that orders prior having the say those XXXX I that that, XXXX. with to at to assuming in no to back cancel of and/or very oil

customers substantially my that what XXXX, view think not view. I telling our there’s and change has to are in us, don’t based So, on changed anything

Steven Fisher

and on infrastructure more have obviously, are now. tricky a orders term, Great. The near that right going being feedback States along That’s you you apologize. mix guess destined and I forward the specific position it guess a And a there there? nothing seeing if some lines, same you or in deferred helpful. specifically then Is I you’re what what’s highway is on I again for the to Do to projects maybe, are of bit specific any some seeing deferred addressed, in being the or highways or infrastructure? experience

Barry Pennypacker

It’s mix. a

some construction infrastructure. very reapply and see States anxious to Our reopen dealers cash to flow of their of some the their are

as suspect has wait the is know, that the planning some that some affect to in projects. infrastructure the quarter Louisiana. funding for of next and as and on to nice see with California COVID. have for very I planning some us projects going were already We’re back state that you could COVID some pull in will into undertake, how the having expenses that. to that COVID will were projects expenses affect Illinois We And year. of year short-term, of told the that third fourth result this leak infrastructure a they it

how whilst same the the can COVID So, say are now time at I through maintain focusing on States they cash infrastructure. flow delaying would that right

Steven Fisher

Very helpful. Thanks guys. a lot,

Barry Pennypacker

Steven. you, Thank

Operator

for conference remarks. like back time, to the any Warner closing or this would at I additional to turn And Ion

Ion Warner

note you us be for joining Thank replay We our accessing will next morning look by Manitowoc Company. the of today’s this speaking our conclude be available quarter. please we of in later to today call Before with first section your XXXX everyone Relations quarter a www.manitowoc.com. call, The that of Investor Please at safe. and for website you interest forward again continuing conference

Operator

for this and today’s your call. thank gentlemen, concludes Ladies participation. We you

disconnect. now You may