Manitowoc provides business update and withdraws financial guidance due to COVID-19
The Manitowoc Company, Inc., (the “Company” or “Manitowoc”) a global manufacturer of cranes and lifting solutions, is providing a business update regarding the COVID-19 pandemic.
The Company continues to monitor and comply with all applicable government health and safety mandates, with the primary goal of ensuring the safety, health, and well-being of all our employees, their families, suppliers, and customers. Manitowoc remains committed to meeting our customers’ expectations, which include the delivery of cranes and providing essential parts and services.
The continuing spread of the COVID-19 pandemic has begun to impact Manitowoc’s global operations and supply chain. The pandemic has impacted the Company’s global manufacturing activities including the temporary suspension or plans to suspend normal manufacturing activity at our production facilities around the world. At this time, the Company is continuing to operate its U.S. manufacturing facilities and plans to continue operations, as permitted by local authorities and our ability to procure materials from our supply chain. Manitowoc’s China manufacturing facility was closed for several weeks earlier in the first quarter; however, it has since resumed normal operations.
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. As a result, Manitowoc is withdrawing its financial outlook for 2020 provided in the press release filed as Exhibit 99.1 to its Form 8-K filed on February 6, 2020, and discussed on its February 7, 2020 earnings call.
Manitowoc’s financial position remains strong, ending 2019 with $199 million of cash on hand and total liquidity of $445 million. 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.