Manitowoc and COVID-19 update

Global crane manufacturer Manitowoc said the Coronavirus COVID-19 has begun to impact its global operations and supply chain outside China.

Manitowoc has issued a business and financial update in response to the ongoing Coronavirus impact. While the Chinese crane factory was closed for several weeks earlier in the first quarter of the year, it has since resumed normal operation, the company said.

Now there is “temporary suspension or plans to suspend normal manufacturing activity at our production facilities around the world.” On March 30 manufacturing in the USA was ongoing and plans were to continue “as permitted by local authorities and our ability to procure materials from our supply chain.”

A statement from Manitowoc said, “The magnitude of the COVID-19 pandemic on Manitowoc’s business, financial position, results of operations and liquidity, which could be material, cannot be reasonably estimated at this time due to the rapid pace of developments associated with the pandemic. Manitowoc’s financial results for 2020 will be determined by the length of time the pandemic continues, its geographic spread, its effect on the demand for our products and services, our supply chain, as well as the effect of governmental regulations imposed in response to the pandemic.”

In light of this the company has withdrawn its financial outlook for 2020. It said, however, it retains a strong financial position, with $199 million of cash on hand and total liquidity of $445 million at the end of 2019. “The company believes it has adequate liquidity to meet its cash requirements over the foreseeable future and remains in close contact with its banking partners.”