Manitowoc Banks On Pricing Actions & Cost Control Amid Woes
Zacks Investment Research | Sep 16, 2019 10:35PM ET
On Sep 16, we issued an updated research report on The Manitowoc Company Inc. (NYSE:MTW) . The company is well poised to benefit from product innovation, solid after-market business, persistent focus on cost control, improving productivity and pricing actions. However, inflated raw material costs and muted customer spending owing to the ongoing trade tensions are weighing on the company’s performance.
Impacts of the Trade War
Manitowoc’s orders in the first half of 2019 were $813.0 million, a 16% drop year over year as customers became more cautious as a result of uncertain market conditions. Trade tensions and other macro-economic factors continue to make global markets volatile. Additionally, the U.S. and European construction markets are slowing and U.S. rate counts have declined. All these factors are affecting customer sentiment.
Additionally, Manitowoc continues to witness inflation in material costs, which includes the impact of tariffs. This is affecting the company’s margins. Consequently, over the past year, Manitowoc’s shares have plunged 40% compared with the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.