Manitowoc’s management team is predicting “another year of steady growth” after claiming that a disciplined approach to business has helped it lay down the foundations for future expansion.
In a letter to shareholders published today, president and CEO, Glen Tellock, said the company’s optimism that it will see growth in 2012 was primarily led by large global customers making new capital investments.
Manitowoc generated $1.5 billion (£948m) from catering equipment sales, a 7% improvement on the previous 12 months.
“This business has created a winning combination of market-leading products, customer and channel relationships, plus an unrivalled global footprint,” wrote Tellock. “We believe that combination gives us many opportunities to drive additional revenue growth. At the same time, Lean initiatives and a more efficient global operating structure should spur additional margin improvement.”
He said Manitowoc had “once again outperformed its competitors” and introduced more than 50 new products over the past year.
Tellock admitted that the headwinds of rising commodity costs and other pricing pressures had created challenges, but said the company knows how to create value in the current climate.
“Some operators delayed new capital investments. Global chains, however, want to equip their high-performance kitchens with innovative products. This often leads them to purchase our Indigo ice machines, Merrychef ovens, Convotherm mini-combi ovens and Frymaster low oil-volume fryers.”
Tellock said that in order to capture new opportunities in the market, Manitowoc had consolidated its European operations, restructured its sales territories in Asia and extended its product breadth.
Manitowoc makes 40% of its revenues from catering equipment, with the rest of its $3.7 billion (£2.3billion) sales coming from sales of industrial cranes.