The Manitowoc Company, Inc. (MTW) 6 Aug 222022 Q2 Earnings call transcript

Good day, everyone and welcome to The Manitowoc Second Quarter 2022 Earnings Call.

For your information, today’s call is being recorded. At this time, for opening remarks and introductions, I’d like to turn the call over to Mr. Ion Warner, Vice President, Marketing and Investor Relations. Please go ahead, sir.

evening’s welcome second Manitowoc and quarter as in and review call business everyone outlined company’s the XXXX last morning, to conference The to update Good release. press financial performance Officer; call the President Ravenscroft, Chief Executive are Participating and Financial on Regan, Officer. today Brian Chief President Aaron and Executive and Vice section slide under Events website a includes be webcast our which can found Presentation. of in Today’s presentation, the Investor Relations and

request queue I that for time and after the would questions Please to like Please Slide provided remarks. and opportunity return to everyone this turn limit We follow-up will reserve in X. questions. material for an note one you our answers ask questions to your and prepared Safe their our has call. statement to to a to ensure the Harbor

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

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

Slide Thank everyone. you, morning Ion X. good turn to Please and

to implement work second and solutions in monumental adjusted the the our were going and in our manage extremely environment. opportunity to like team’s constraints. hard these a team take revenue relatively in our I of for $XX results quarter proud The face I chain to deliver increases, of thank shortages, metal over beyond to execution continues million results would multitude to above challenging EBITDA. efforts costs. made and in financial just am achieve find reflect part $XXX The and Our in team our the team’s logistical of price results. supply of difficult Manitowoc team operating line with These and shy an business remains expectations. million to Day-to-day to very the

front, as such are strength, our our crane crane clearly the the market slowing. On anecdotal Middle and continuing markets surveying When activity, is to global overall signs rental customers, demand higher. East strong the is are rates at gain inching although

detailed for closing tempered However, been I that significantly an building but rising statements. for rates my previous has point, my reached months have the XX elasticity for inflation had and new interest inflection the comments new equipment. momentum machines save will Price

the standup As call, last the inflation softened portended approach react times. lead earnings orders are in between extended in to they as the wait-and-see second customers and quarter, taking reflecting

this represents backlog the Our remains quarter although in first years. X healthy, decline

with I Turning to pleased progress. am Cranes+XX, our very

same aftermarket grew a acquisitions the This XX% we business year business the our H&E For versus by the was ago. growth quarter, period in of the by Aspen. mainly crane driven

repairs crane With our for proactively the us, penetrating these population, turning accounts, attention expanding phase includes territories. growing our which businesses, underserved tech service and growing integration are engaging service we to behind key contracts

Aspen process For we City. into of are in Kansas a expanding the in location with example, new Missouri

Slide to proud Manitowoc way. XXXXs. virtually to it There was conveyor am had older The real and like I turn today recently in that operate system our forward booth Brian, think Italy. I machine a had to I would fixturing lean physically for owned with Fast every to We of When to The paint continuous a push to we I was we we class employees that factory improvement system make than before me. facilities highlight The Manitowoc, our first robotic continues and of a CEO a a in that efforts. over and Lastly, I welding, envious. team incredibly way. the for were Porto Portugal with joined disappointing would embodies two pretty world team in any Please fixturing, Niella, Porto, culture no paint hand dynamic to that reminiscent and our I X. how visited organization manipulators had factories new Manitowoc have welding.

gas Additionally, parts payback. to of reduce were is paint an immediate team €X,XXX booth the room natural to the consumption, recently the reduced just dry that the with size retrofitted and used

the found As team TPM, reduce And our factory, a payback. their an the waste, last shop waste, rather area by cap This time resulted repurpose of nearby reduction one held part over and to in change dropped the minutes. to landfill from in their XX% a of driven foundry assemblies. to the minutes immediate kaizen in team time to a efforts mass assembly the as again, fabrication XX the XX machine SMED than two cycle

they forklifts. and factories Every potential many Finally, they have know, too shop at factory hazard, derby. not like facility. me has so peeves mention the my look as anyone Portugal forklifts pet a with would visited that the on a has typically they are been safety one through biggest to is demolition floor Not of our

diligently strong, to the Law, most to a pleased controlled Our has been part tech accordance has business. safety team equally have improve in time. this work reduced the them meet at where tech I has within big flow have the factory. and team’s a shortages kudos the digital our forklifts a TPM using we factory Italy. which with in with lower is the and [indiscernible]. the log crane how was time are cranes and track who self-erecting Pedro Demand special they they team Murphy’s In using Niella, worked significantly to Porto to throughout also are system obrigado tower is XS, Nevertheless, to them, our for our

subassembly main achieve During two add our our line, the production the to will four lines standard advancing they August mission and move shutdown, stations team assembly will to work.

system data for their managing and my manual most prototype I logging impressed was controlling machines. welding During visit, with

cost in automatically black still a be programming, the Although phase, and smart some use. can using aren’t they when to machines sleep the box test put low by in

power site, and than more has have welding meaningful environmental We consumption a their impact. XX machines cost reducing so on

In concepts analyzing Brian technology, and month to and you same usage by the the times. through I team of their that, wire improving to call the big take Alessandro with some team to addition welding the to luck financials. great for and line this best thank us has the A welding will to turn With using moves. Diego over Dutto quality,

Thanks, everyone. Aaron X. move Slide and to morning Please good

million, The lower our by Our second $XXX ago. a quarter decrease decrease orders demand was XX% year-over-year driven all a of segments. year totaled from of in

by $XX million. unfavorable orders impacted currency approximately foreign Additionally,

global which slowing, quarter. in reflected orders mentioned, the crane market As our clearly is Aaron is the for

by $XX Our was approximately XX million June down foreign Backlog $XX backlog sequentially million in exchange and changes from remains healthy. rates. unfavorably to impacted currency $XXX million

the However, sales the increase quarter, our X% and entering $XXX The this was our year million and regions driven quarter U.S. was year-over-year a shipments. from buoyed in increased backlog primarily Americas by second in shippable acquisitions. by of from stronger Net the delays incremental in ago. the sales

Net acquisitions estimate the shipments be exchange this SG&A constraints, exchange to be in to of However, rates. foreign foreign million and increased resulting revenue offset changes in shifting $X to currency year-over-year, primarily currency negatively by $XX supply approximately favorable by revenue to sales the impact impacted expenses million. We approximately impacted right. partially million unfavorably chain also were continues by rates. our from by $XX related

of EBITDA the adjusted Our decrease was quarter million, $XX for second a XX% year-over-year.

This previous prior XXX discussed a year. price of points in decline percentage of sales, approximately was EBITDA basis over calls. margin As due primarily adjusted decline dynamic the to the X.X%, a was cost

quarter amortization Second of $XX by depreciation again the compared driven which million increased to year, $X was prior acquisitions. the and million

income benefit the to taxes. quarter the tax actually of million. had basis, U.S. of expense $X tax On was a reserve an On in Moving in release due $X to GAAP basis, income adjusted the a we a million our

reminder, tax jurisdictions. we losses allowances expense profitable valuation offset established income have for and in a tax are available in therefore, certain countries countries, to not those As

was adjusted $X.XX to a share year. the income quarter currency $X.XX. Our $X.XX, GAAP per of an decline year-over-year diluted income Net On diluted $X.XX from contributed losses the per decline. in basis, exchange share the was foreign prior

the capital net changes disruptions in of and million, foreign is This to favorable from year-over-year exchange currency volume, million net increase increased $XX supply increased inflation. $XX chain Our primarily due working acquisitions, rates.

operating $X to from flow. broke cash the activities quarter Moving million rental the in of the for million, working even was spite of in $X spending was on cash We challenges. fleet. Capital which capital

of in flow a quarter result, use million. free the cash a $X our was As

of $X was a During outstanding we repurchased $XXX under of and the at the from quarter share shy borrowings quarter. our million $XX last strong creep. cash authorization The the just remained to of total offset ABL, for is $X ended $XX with shares decrease balance million. XXX,XXX under remaining a balance million, million. We our $X million Total million quarter, liquidity

the full we at to guidance end at be adjusted the Looking year, of EBITDA the range. low expect

higher interest be from Additionally, rate we expense anticipate higher our ABL at borrowing. approximately mainly from the $XX to interest million,

the to to slightly With peak a third working begin positive now year. back will that, and trend cash to to As From for in capital quarter. the quarter will Aaron. turn it free breakeven to estimate relates call fourth in expect we flow, the down the timing be we I standpoint,

we’ve months in and ago, began runaway Thank move ever steel, you, train, Roughly Please started numerous which capitulate. Interestingly, exploded the X. finally chasing been have to prices with Brian. commodity XX inflation increases to price since. Slide commodity particular, prices,

to increases component Card and the With demand improve. Russia’s at fact when is for disrupted in labor situation prices up the to this aggression with have go clearly towards inflation And look the my However, will up. supply, concerns we begin concurrently that list components. to and there EU, and demand no shortages, energy, is prices pricing. particularly of our was predicting shortages energy input well Ukraine, match our equilibrium. The and pretty When have when can Apple you cost part our outstrips supply respect wages, upset to it shifted by

FX that less am elasticity inflation concerned than with the All on being demand. I of price said, impact potential and have

current haven’t when predictable, of more manageable become seen had inflation inflation, but we tripling the we Strangely, overnight. has far manageable. it makes of more nature inflation which sure, steel than more the For is end prices

Moving to elasticity. price

finally and in made higher We in interest that more and like implemented increases mix last range financing the have the attempt interest meaningful however, to Fed the It’s prices a inflation. rates rates unfortunate, The has difficult. of to asset combination an XX increases higher expensive squash over months. XX% of price crane

XXX-tonne consider Demand cranes for Just cranes will It’s if months power you today, that tough dynamic. this XX finance would the inhibited to same be only XX math, math. buying cranes. rough-terrain get XX beat the ago, to by

to drop shoe second The FX. is

this inflation, U.S. imports. slow I’ve interest sharing to While manufacturers also compete the to been further significantly creates a strengthened which for has disadvantage increases rate dollar, with

Fortunately, tracking we pull we are have competitors a Nevertheless, closely base of our strong manufacturing EU. our how some few given the foreign levers dollar. relative strong the behaving to to in are

has increasing uncertainty everyone the rational. as been I anticipated amongst far, slowing our continue first call, So demand. to during conference with Freightonomics quarter evolve, customers

Olympics, of the our at signs market an help nervously gas risks speculating renegotiations how Europe There talks mitigate been biggest major the an Europe chain. city Unfortunately, of for French crane been Paris mobile the remain Likewise, in facing of great to beginning the and delaying in market, panel which normally factors respect the rather my years. to XXXX off to own construction projects In point to With good is quiet Portugal around for accelerated the tower costs. last years the has market have intense its way however, is edge. prepares evolve. our as in slowing tower for Looking the crane Despite it. during Italy geographic the and and simply regarding down availability is currently investments the value concern. The to rent. starting are stable the crane coming rising under Russian business will second tower cranes the is likely challenges. most is is regions, throughout inflection European for on rental construction portfolio, situation around utilization showed several crane projects it the are response, come quarter. couple is is we electricity, market has solar last the rates, no Several wind muted. Everyone some which market tower are German quarters. and many top

increases. is filled Moving This, Activity rental Florida the however, with is even to robust. summer is bad market one also hand, about slow rate as chatter U.S. usual places and a remains news. there conflicting news good The months, process. fleet On will during and the favorable like in utilization be

levels hand, construction near other oil current the though given nowhere improved, cooling. is On residential expected the patch oil activity, is Moreover, prices. the

supply I inventory today As in backlog. at reflection is channel open describe The chain next ship for months. good inventory on our dealers challenges of reasonable. end, would When largely to dealer the a low level is of the are inventories, our and levels I actual but related is X believe dealer orders inventory, our delays dealers with that for our I shape overlay this

I always Crane of States. in and uncertainty confidence, moment As the the built business lot and EU say, is the is the on at a there United

COVID zero other and Arabia. positive of by construction The at Looking market markets, lockdowns. the remain Saudi persistent the due Chinese remained I some its led sluggish on East policy to Middle

and in good to we last Australia not remains And shape. beginning hold Asia. but South are activity Korea up, Southeast encouraging to in levels see least, continues

out XXXX. the I Endurance is of game name quarter, pointed the last As for

isn’t Although cover of we enough our the the of some remainder backlog have priced, ideally year. to

I of Way cranes. of progress a X. the but for began Due was shipping cranes ever initiatives cranes namely initiative to quarter, our well lifting crane outstanding continuing paper, to long With of just economy X a with move breakthrough event, our to we on strict this XXXX. we’ve on execute we’ve extra Last one best launches. a launched to than a still X-axle breakthrough is The problems goals. highlight four we’ve delivering XXXX the originally our boom global corner, of crane On on tollgate system our that to focused adopted the to has that as stout altering the XXXX quality long and bauma delay Unfortunately, of for while in XL, we on its it big launched its ahead at the axles. find which ensures become rather with product its Slide Manitowoc the lifting then, list the couple Manitowoc Since laser would remains Cranes+XX the an have can on power GMKXXXX-X. infamous team surprises. few capabilities. around process NPD show, we was what Please applied as footing, the control, launched our struggling successful The With like

new the model, outrigger lessons incorporated load implementing on variable improved has legacy of increased positioning to the system learned and all the class, and crane outstanding. the in addition In GMKXXXX-X. our speeds initial charts, feedback crane and for from the we’ve our system the most is refreshed been incorporated versatile strongest MAXbase its hydraulic CCS in This

Connect hope of work, quarter, new light have to is third roadability designed additional team it model for model reception a to feature of great GMKXXXXL, Manitowoc’s another Heading new to increase our to begin chain to will continues the at will this the improving telematics The the of the and long-term into forward all-terrain the persist productivity unveil. with a This Grove to There we look During crane. show. will you supply ship is, bauma, for In taxi inflation both about shortages, we lot model, We customer And optimism closing, outlook. see the which in solution. crane. deal X-axle and XXXX. however, one we

a many fleets, heavily market of I the with Renaissance, tailwind XXXX. our customers XXXX replacement years, a to their cranes from for pending populated multiyear purchased the during expect be will business. which coming begin refresh significant this cycle aging the to to Over are crane boom

offering value. its that, growth With fueling and and Manitowoc the is to open operator, this questions. our focus lines for aftermarket shareholder While renaissance [indiscernible], inevitable driving continue please product long-term will strengthen crane

from very Instructions] Cook question you sir. first ahead, Please [Operator Thank is Suisse. sir. go Credit Today’s much, coming Mr. Jamie from

Your line is open.

Hi, good morning.

Good morning, Jamie.

in puts wondering missed encouraged Because it your orders. year, what you understanding to of with in coming I they Thank you’re of EBITDA. the you. just price your the some up get anyway, of low guess if sales I guys business different? cost same aftermarket I’m now was changed in I guidance the I end the question, to costs that there but half guess XX%, terms price are are the now, takes using was if and weakening the then the And the with assuming increases with down and back perhaps on expectations commodity lower degree? have kept

cost a Hi, particular, the Jamie, is of there so still from at the headwind decent price/cost coming the looking in second half. half back around in amount

We’re estimating see related machine as QX, mix million sales as us. mentioned, the well. mix, new well better to impact equipment impacting year as inflation did just that the to is as you $XX we negatively full a of non-new close

So the well. our the QX, remember, And X.X% shutdowns margin have in margin is a we impact bit which as Europe, favorable.

of the end we’re the $XXX there guidance, full pretty volume. the about based there we comfortable thinking low still So on opportunity are – year, kind and of the about just is million the at

I’d Jamie, thing issue Europe, fabrications. then And comes show the that a in we are down of And energy, we steel Components the inflation. fabrications prices the is a is And is Europe. to get is have particularly commodity with in add, from continue Eastern of lot actually other lot up. times

all things still Russia, a been Ukraine amount modeling front. is situation, the happening we’re the there of fair with on So inflation with that that

aftermarket you downturn, the earnings Okay. – guess, is about business? done you I from Aaron, focus we you’ve and the help that a Manitowoc’s of And of any some the going there M&A focus resilience think with assuming change then are to on in on – how could the just do into growing talk given the

the just the through still answer I we’re we question inflation. all this sit crossroads, mean not is Yes. to I your difficulty think

through that call get a But waves big gone what months, costs. last through managing in good been more If of in terms that rinsing it team done two issue the backlog basis. is had way. our XX ability job my of hope we’ve a and really get you through, has the we to this along there of think mean normalized The I challenge that’s to about I we’ve feel it, getting But good the battling. we

big spike a predictable I saw we to that hopeful on seeing what we’re a if steel now spike what the get the into yes, and – But get battling next it’s invasion first a So that back business. on think more that’s to – still we than coming we normalized rather out even I – of we’re of Russian inflation, think. big half which is the this I’m with year,

moving And it supply change the Yes. the right. keeping is to constrains

Yes.

Okay, I back in get thank will you. queue.

Jamie. Thanks,

you. question Please Stephen next Thank Volkmann go The from is from Jefferies. calling ahead. coming

morning, Stephen. Good

of we good pleasure are Cook. year sort a better. a I going probably to guess guys. in I cross I’m guess if just be I’ve follow have is should little questions, a And bit some can Hi, to Again, the morning, after to lot Mr. if currents right could. downturn I guess I those see cost my going price go ‘XX, for of because

on You should issues. little be Mix with that. a bit some work gets even doing catch helps the easier, probably productivity of up chain little better because on a you’re Supply service. might bit

trying of in out, flat could sort is So modest margins to I’m actually Aaron, have a I guess or we up possible even it in downturn? your mind, figure that just

early too to it’s that. think predict I

normal is moment. I to backlog supply chain than we’d be faster are a situation, we through in keep our think the mind, eating Steve, the at in significantly other thing

we serves that the I So ‘XX. see that that soften think challenges may help in –

still on know on then anything demand, Europe to are called robust on Okay. upside? just you out sort of the to you? there sort out end-market of but call I which the downside, areas feeling are pretty And any

products Red going infrastructure Yes. I now is Arabia mean the gangbusters with they particularly [indiscernible] Saudi have, right the all investments the in their Sea.

from that years X the So we’ve think for last turnaround the That’s a businesses. where been all great in in looks I Saudi. nice

Great. Thank you.

Stephen. Thanks,

Thank you, sir.

Zakaria, from go calling We ahead. will Tami to Please JPMorgan. now go

Tami. morning, Good

Good Thanks my are you? morning, how taking question. for

ones. have a of quick couple I So

point. you so have – increases price hit one said you think first an The inflection

cranes remind us – The you XX you ago. – that the been now the cumulative same cost few price over increase has years? as can what cranes last X XX So I’m doing math said years the a XX

Is So that that’s inflation cranes. XX% math like directionally a on correct?

Yes.

correct financing of increases, So price the it we but incorporates is implemented incorporates offer the terms it because through math XXX% we’ve also that what financing. in

what that. rate know we the folks are using that So changes interest for been have

done the we’ve terms In what and XX% of months, on the XX line increases, last XX% depending product our just somewhere is. overall price between over

with and I look – help pricing when order even means of be small looking different that’s out which things and of along for an we of window, X-month to schedules, sort folks we’re been commodity provisional And quarter. will seeing. and overall will we So in all change stuff long the take the got price build – restrictive within on trying the first to will that’s forward, implement increases use – backwards components we’ve then be and that sort when the in changes to I that terms their shipped prices the get X some that we’ve how to started to

an back with through in constantly the February, XX to it’s having ago then inflection up. chasing and what like Russia say catch endure we we’re I’d went months situation it with because for to steel point us, felt So

we’re in months. hopefully, now little more, We’re coming a we where couple we better inflation of the the little situation in see last crossed, a did a fingers than

it. Got

to the and the customer actual costs So sort perspective? clarify, price is increased of split financing the between just XX%ish increase from

That’s correct. Yes.

Got it. it. Got

outpacing supply? And much material so pricing to versus took, just lines you along that XX% of same versus say, XX% let’s how the that inflation-driven labor-driven is, demand raw of

the driven just say inputs been materials. would I of majority by it raw have would of

next battle the XX that to think the wages, over months. big challenge that’s I going we’re the

Yes.

inflation to other think components, it be the I is just another and component. Europe in other overall on labor related whether then inflation wages components, energy or

were I down Got squeeze can one it. XX%. more, orders If

XX%. I think ex-FX down

product how quantify were able by region? you much are by orders to and down So

of detail. give don’t generally that level We

was throughout think I it at we look down that you the mentioned regions. if our overall, So

I So think...

Yes, on, regions we down. all three the of report were they that

Tami, we’re downs So thing and ups The throughout normal our that’s weakness I month we there is when mean, interesting I say, one seasonality been is, seeing mean monthly I’d normally, across every board. the the years. have and

if not and However, in XXX. been consistent, including I sort was is I’m pretty we’ve per range, months, the I July of I our $XXX X last think if look million, that at $XXX – look XXXX, average month at which

I it’s better – sort look ironically, at So always ups normal at but least is downs. not at the over when it’s it’s There least charts, consistent, a flat in maybe our period consistent. business X-month been And or think of word. that and a I is

due I – I think well. way managing we’ve the that the the it’s prices think yes, been with fact as

much. you Thank it. got Okay, so

Tami. Thanks,

Thanks, Tami.

madam. you, Thank

Please go coming Dobre will now We RW go ahead. Mig Baird. to from

Hey, good Grabowski Mig for on It’s morning, guys. Joe this morning.

Hi, you Joe. How doing? are

Doing well. Thanks question. for taking my

about the headaches around the a to amount was better slightly delay getting of are quarter, quarter, orders in Or fourth guess moved that in the you bit? Maybe kind I $XX pretty first maybe second two shipments they issues chain quarter, right. shortages constant than just saw similar talk part are the the worse quarter, little So million, than the the and of but in the quarters? moving prior to supply issues

two past continue actually headaches move during quarters. situation supply I would up. argue that this chain than the the the was Yes, to quarter worse

at item line by standpoint, if look I yes. So it

better. definitely not it’s So getting

on revenue reforecast. miss the And in is million based our $XX Yes.

backlog expectation already something an it the the that’s already was of right. – was – there some was the So shippable to moving billable sorry,

quarter. really is what million expectations on based $XX were the into So our the going

Got it.

markets, I of for follow-up And really infrastructure, guess color. you didn’t about kind talked U.S. different when end question, mention Okay. my infrastructure. Thanks that you

infrastructure X gain you And months Are anything discussions that? is been Caterpillar some start you the of about an We’re projects Europe. maybe going on hearing mentioned of to some infrastructure in that top maybe then build. traction? are Have that, there I the past to about this think about infrastructure it week signing program talk, heard any

Yes. there is lots I nothing of houses to break have there lots but and mean engineering loose. discussions the review, of to is starting projects out always

With too say, I’d to make anything depreciation still, again. that program around. stimulus of some different again, from we’re programs some clearly Europe, it’s XX, in terms XX taxes. projects comments relative XX But ran to So not sort significant respect months early infrastructure they really rates of they any had months, to and seeing

Got it.

for questions. Okay, thanks, guys. Thanks taking my

Joe. Thanks,

Thanks, sir.

now Seth go ahead. from to Securities. will calling We Fargo Weber Wells go Please

Good guys. aftermarket the you to how the out out ask I XX% growth And Hi, can for organic that Thanks is question. of morning. just much taking backing sales, that wanted used on get break then non-new of the service acquisitions? for after how in and revenue growth? sense underlying of to I’m additional much just a Thanks. kind trying is from crane revenue sales? parts the

the of acquisitions, different from that it’s the and we out Yes, number. break components don’t primarily driven

can your million million number? with go expectation the think maybe $XX I and tower $XX Sorry if for included just CapEx you previously, the talk it continuing comment was for your Thanks. just European And missed CapEx Alright. to it, that that you Okay. I year? just expectation $XX about year? on forward the Are for And business. million, but

cash now, but Right the we’re year. $XX standpoint, of Yes. flow flex flat about we free be million based to year we’re thinking out think a from I the the I to for CapEx, cash plays positive going as of can mentioned on slightly that how

million to the to Of that, So the $XX fleet. targeting. really is we’re rental currently $XX million million about what relates $XX

point? orders? it you. one just this Or if orders in cancellations at thank maybe squeeze is the new then I Okay, of last And you just could coming aren’t one seeing in. actually Are

coming Yes, there is nothing material. It’s all orders in. new

you. alright, I Okay, guys. it. Thank appreciate

Seth. Thanks,

Thanks, Seth.

go Please now calling go sir. Steven will to from ahead We Fisher UBS.

Hi Steven.

own European concerns And your separate do energy bill you with concerns. from what mitigate you of your Regarding much can of To investments? your solar energy manufacturing? extent costs demand how

now. So, of the – folks that produce, for the just concerns that’s first, just our cold right Germany is by They for to by preserve. in preserve the demand driven just is driven there out to it’s impacts stories of has – are lot have to trying in coming. energy a Everyone it’s the just there winter necessarily been not showers, showering trying ability

thing that’s I everyone of sort think that’s to So, driving the be cautious.

the In in a terms electricity, lot and it’s those a impact in panels, continue it’s of projects enough to where Italy, struggle forward, solar the not We particularly but to not the a use gas in because just gas. of Portugal of couple move it’s lock offset down to also it’s pricing, we overall our...

is a U.S. infrastructure on I big not on And getting the maybe industrial cross moment of to going there that isn’t – And path? projects for why lot crane having market and are the that just more question there make Okay. the – industrial currents now of enough or all are U.S. the at started. but then isn’t yet, funding. the is some that clearly, right about are confident maybe of earlier the a outlook appreciate a just infrastructure growth kind of Why that there more have a market. seeing the you the in follow-up we U.S.

Yes.

low I is utilization cranes. of of just that think some we had

really utilized. demand. fleets moment, just – beyond the everyone starts at their So, drive getting It’s this existing and not above is to

lead to end, sort of the how fleets. are actually and and times folks, price But front utilization in pretty interest there think rates cautious right are the relative good moving increases with my all crane which It’s elements direction. their are rates grow everyone and going usage they actual is inching to two pretty on there. things are from I and to So, is up conversations

that’s where see we the concern. So,

lot. Okay. Very good. a Thanks

Steve. Thanks

calling will Please from now Thein Timothy We Citigroup. ahead. move go to

morning. Thanks. Good

you that that expectations not. lagged not kind their be the in their just a assets. kind on of alluded to need of cycle. cycle. customers, are historically, assets or terms commodity of dynamic of companies equipment thumb component? have totally lagged different dynamic patterns curious out, am how business, rules you super banking mining presume their the has – to obviously been is a when It’s it X to been on is – that reliable years how same this out cycles. the the maybe would What the question age But of root of of found kind of X on based big, in we terms have employed the kind First be customers plus? from question by historical in – a But that miners of seeing when extend like reliable longer And it’s just the replace you because may I guess ways I got the has question, earlier but lot of, the eventually playing – them various of your the trade replaced all will is early have big term a had just that that years of XXXXs kind kind push similar kind there of they and now replaced that? expectation it’s their

today XXXX review of I anecdotally versus say the for speak But competition. the I And it’s specifics. say, our the is – you we these where cranes, been, When look that drastically different. our there cranes Yes. ourselves sure, I former compare warranty, to if significant mean is models, then products new T will and launch, we T quality would all would they improvement. just mean at not we have I

bit. out think a to little I that folks that’s allows of the thing the manage So, to sort continue and business push

I at of had look last is like you crane other an in years. asset you business think when it crawler the cranes, XX the on side the

those doable of for or very push I do year X cranes. it So, year, that’s sorts X

Yes.

back going to on the the inflation about new then And the Okay. point side.

don’t had up some and used less – factories, is output wrong of, as prices stuff used? in used presumably from but trade such a to maybe Maybe on – you as there yes, maybe differential being and support providing that those helping And standpoint, is from dynamic in am that had as going pull are the your overall any cushion dynamics just slower just on terms I the comment is – it’s help, just – have Just been new up, also I it’s helping to you market? that. but

balancing a machine. that just certain think for helped I automotive think to mean are don’t willing where out the some want the pay When would just they are they would. it they models to the and they on that older there. need are are that and other out that obsolete say hands mean there folks industry don’t they with, are are values models, there, that I – models yes, a And is it’s get new on certain sure there think quite you models get for there this it’s But I act. top there because their unlike There Yes. can’t and do. more I I that depends – are certain cranes need frankly. it’s are just for those they the class

lot. Got Thanks a it. Alright.

Thank you.

from to Instructions] calling William We ahead. Please Larry DeMaria go Blair. [Operator now go will

morning Larry. Good

Hi Good morning guys. everybody.

of Just guess kind weakness? drop residual what huge your implicate equipment but on I of and the and of materials, next So, just view new lower does if part there. the negatively with high-level opening the negatively pricing? is, risk? I values next trying don’t if will line and that’s this how I pricing to and weakness, EU kind lower of on value? your residual period value imply supply to at going residual that’s Because wondering I – the in get question guidance, idea have you know am the demand, same chains that just curious, thoughts lower of to you potentially it’s staying to pricing inflect – And that because inflect year am the it really, going pricing

going values down. I don’t down. that. No, going residual I don’t prices I think see see don’t

happen situation or just months and folks smartly Russia-Ukraine through may current are gas. think are XX months next what managing with on concerned scenario, the they in the about X this I

FX? And with the

rates are increases they in than utilization on U.S. all progress in And good do the more here, rental in probably rates Europe

not think So, residual there in to future. at risk foreseeable I that least the values, is don’t

see new And for equipment? in risk therefore, negative also, pricing big you a don’t

had not mean say of representative our I I not inflation quarter. wages. of are see situation. mean we the I were when cycle the – would we normal the even quarter the I in in don’t look first you No. have first we – negotiations still lot we still at have a

now you time think same Europe for a about mean at If February, in because gallon petrol happened it when is you negotiations – the But petrol March. $X.XX start, the I in a gallon.

food to So, wages. those going things and it’s start the that’s driving in

Right.

nice could be bill. but currents potential there. been bill? looked The not now, going of upside, This just it like, come out Okay. demand to few has if And to years what year, to doom over cross be too. next I the follow-up at lot activity have it’s going bottoms-up guys of think you on next might but the like a and there, have amount mentioned, Obviously, about fairly there it’s to is maybe to because approach look I out and a tailwind, then think sounds gloom also infrastructure the a that’s

is cycle. where the should of I about required committees the production building solar terms the nuclear. electrical a produce favor. still the network That’s I that work that at are about lot point, little I on politicians I to how and something around to talking see United the conversation there amount solar help are in to the wind are of replacement the to we actually can optimistic At make all bit. the there we because honest and think between all the going you it’s and to you, and why – thing the an a to just if with used, have some is our that States. serious wind you But amount someone is mean be electricity out Yes. going I have do going but country electricity mean a side the never can thing, other of to crane going that more produce nobody renaissance talking and normal And more, will to XX% point, discussions it. getting issue understand in change is produce this about. and be to more. utility increase That is know is significantly I significantly electricity Larry, And don’t some think use going about is the of we they

be a for in quite years. that I to folks math behind trucks, the electricity the as over shortage start it takes get this think much that X Class the next the XX huge But So, would into and are you understand how to charge got we really crane huge realize United frankly. going we business, to States

it’s long Everyone So, been business. news is It’s bill elections. I that about couple think for – only mid-term is the It’s It’s months signed. the all thinking infrastructure a just of good crane process. early. is a the since

out there to think I there it yet. So, enough really on is distractions see catch

and enough Good thanks Alright. the color. luck. Fair for

Larry. Thanks

you. or any [Operator remarks. As Instructions] do Thank to we have questions. any turn like Mr. the to Warner not to over additional would appear I closing for further back call

Thank you.

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

today’s will Thank conclude that for you, you your and gentlemen Ladies sir. participation. thank We conference.

now may a Have day disconnect. and goodbye. You good