Q4 2023 The Manitowoc Co Inc Earnings Call
Operator: Good morning, my name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Manitowoc Earnings Conference Call. I will now turn the call over to Ion Warner, Senior Vice President, Marketing and Investor Relations. You may begin your conference, please proceed.
Good morning, My name is Krista and I'll be your conference operator today at this time I would like to welcome everyone to the Manitowoc earnings Conference call I will now turn the call to ion Warner Senior Vice President marketing and Investor Relations. You May begin your conference. Please proceed.
Ion M. Warner: Good morning, everyone, and welcome to the Manitowoc Conference Call to review the company's fourth quarter and full year 2023 financial performance and business update, as outlined in last evening's press release. [inaudible] Participating on the call today are Aaron Ravenscroft, President and Chief Executive Officer, and Brian Regan, Executive Vice President and Chief Financial Officer. Today's webcast includes a slide presentation which can be found in the investor relations section of our website under events and presentations. We will reserve time for questions and answers after our prepared remarks.
Jon Warner: Good morning, everyone and welcome to the Manitowoc Conference call to review, the company's fourth quarter and full year 2023 financial performance and business update as outlined in last evening's press release.
Ion Warner: Participating on the call today are Aaron Ravenscroft, President and Chief Executive Officer, and Brian Regan Executive Vice President and Chief Financial Officer.
Ion Warner: Today's webcast includes a slide presentation, which can be found in the Investor Relations section of our website under events and presentations.
Ion Warner: We will reserve time for questions and answers after our prepared remarks.
Ion M. Warner: I would like to request that you limit your questions to one and a follow-up and return to the queue to ensure everyone has an opportunity to ask their question. Please turn to slide two. Please note our safe harbor statement in the materials provided for this call. During today's call, forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 are made based on the company's current assessment of its markets and other factors that affect its business. However, actual results could differ materially from any implied or actual projections due to one or more of the factors, among others, described in the company's latest SEC filing. The Manitowoc Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or other circumstances. Thank you, Ion, and good morning everyone.
Speaker Change: I would like to request that you limit your questions to one and a follow up and return to the queue to ensure everyone has an opportunity to ask their questions. Please.
Speaker Change: Please turn to slide two.
Speaker Change: Please note our safe Harbor statement in the material provided for this call during today's call forward looking statements as defined in the private Securities Litigation Reform Act of 1095 are made based on the company's current assessment of its markets and other factors that affect its business.
Speaker Change: Actual results could differ materially from any implied or actual projections due to one or more of the factors. Among others described in the company's latest SEC filings.
Speaker Change: The Manitowoc company does not undertake any obligation to update or revise any forward looking statement, whether the result of new information future events or other circumstances.
Speaker Change: And with that I'll now turn the call over to Eric.
Eric: Thank you Ian and good morning, everyone. Please turn to slide three.
Aaron H. Ravenscroft: Please turn to slide three. As I look back over the last 12 months, I'm very pleased with the performance delivered by the Manitowoc team. While the specific challenges seemed to ebb and flow, without a doubt, 2023 was just as tough as the previous few years. Although inflation seems to be mostly behind us at this point, the team worked diligently throughout the year to mitigate cost increases from our suppliers while continuing to push for the appropriate price increases. From a demand perspective, the European tower crane market was even softer than we anticipated. However, the mobile crane market, particularly in the U.S., proved to be far more resilient considering the interest rate increases that we've seen. Consequently, our team had their work cut out for them.
Eric: As I look back over the last 12 months I'm very pleased with the performance delivered by the Manitowoc team, while the specific challenges seem to ebb and flow without a doubt 2023 was just as tough as the previous few years.
Eric: Although inflation seems to be mostly behind us at this point the team worked diligently throughout the year to mitigate cost increases from our suppliers are continuing to push for the appropriate price increases.
Eric: From a demand perspective, the European tower Crane market was even softer than we anticipated. Unfortunately, the mobile crane market, particularly in the U S proved to be far more resilient considering the interest rate increases that we've seen.
Eric: Consequently, our team have their work cut out for them.
Aaron H. Ravenscroft: Their hard work in achieving these results often goes unnoticed on these calls, but without their willingness to go above and beyond, our performance would not be possible. Thank you to the team. For the full year, we generated slightly above $2.2 billion in sales and $175 million in adjusted EBITDA, a 23% increase year-over-year. And our adjusted EBITDA margins expanded 90 basis points to 7.9%, which is a great result when you take into account the unfavorable mix that we faced. Non-new machine sales for 2023 were $613 million, a 12% increase. Please turn to slide four. Turning our attention to the Manitowoc Way, I'm extremely proud of the team's results. First and foremost, in terms of safety, we ended the year with an RIR, or recordable incident rate, of 1.01.
Eric: Their hard work in achieving these results often goes unnoticed on these calls but without their willingness to go above and beyond our performance would not be possible. Thank you to the team.
Eric: For the full year, we generated slightly above $2 2 billion in sales a $175 million and adjusted EBITDA of 23% increase year over year.
Eric: And our adjusted EBITDA margins expanded 90 basis points to seven 9%, which is a great result, when you take into account the unfavorable mix that we faced.
Eric: New machine sales for 2023 were $613 million, a 12% increase.
Eric: Please turn to slide four.
Eric: Turning our attention to the Manitowoc way I'm extremely proud of the team's results first and foremost in terms of safety. We ended the year with in our IR, our recordable incident rate of 1.01.
Aaron H. Ravenscroft: Our goal remains zero injuries, but nevertheless, it is worth noting that this is our best result in the company's history. I attribute these results to an increased focus on interactive observation. This is essentially a structured on-the-job safety dialogue between supervisors and our shop floor team aimed at discussing safe and unsafe behaviors. Our interactive observations increased 70% year-over to 17,000 in 2023. In addition, we continue to aggressively pursue environmentally-related Kaisers.
Eric: Goal remains zero injuries, but nevertheless, it is worth noting that this is our best result in the Companys history.
Eric: I attribute these results to an increased focus on interactions observations.
Eric: This is essentially a structured on the job safety dialogue between supervisors and our software team aimed at discussing safe and unsafe behaviors.
Eric: Our interactive observations increased 70% year over year to 17000 in 2023.
Eric: In addition, we continue to aggressively pursue environmentally related causes.
Aaron H. Ravenscroft: As a result, our waste-to-landfill improved 30%, and our Scope 1 and 2 greenhouse gas emissions intensity improved by almost 9% compared to 2022. The Paint Value Stream at our Char-U factory in France won our CEO Manitowoc Away Award this year for the Best Environmental Lessons Learned. Among several improvements, the team developed a digital monitoring tool to optimize scheduling to eliminate bottlenecks in the shop glass line and paint workstations. The team was able to increase the capacity of the paint line by 44%, while reducing the carbon footprint by 435 tons of CO2 per year. That's equal to the annual usage of 100 gasoline-powered cars. This is the power of the Manitowoc way.
Eric: As a result, our waste to landfill improved 30% and our scope one and two greenhouse gas emissions intensity improved by almost 9% compared to 2022.
Eric: The P value stream and are starting new factory in France, when our CEO of Manitowoc Way Award this year for the best environmental lessons learned.
Eric: On several improvements the team developed a digital monitoring tool to optimize scheduling and eliminate bottlenecks and the shot last line and paint Workspaces.
Eric: <unk> was able to increase the capacity of the paint line by 44%.
Eric: While reducing the carbon footprint by 435 tons of Cotwo per year.
Eric: Thats equal to an annual usage of 100 gasoline powered cars.
Eric: This is the power of the Manitowoc way.
Aaron H. Ravenscroft: Lastly, I would like to recognize three other award winners this year. Ludo Pirovat at our Char-U factory won the Leadership Award for his work on the electromechanical value stream. I mentioned some of his achievements on a previous call. In the last couple of years, Ludo has become a real lean guru, and I've enjoyed watching him grow as a leader. Please turn to slide five. For the first time, we created an award to recognize the implementation of the Manitowoc Way at our growing service location.
Eric: Lastly, I would like to recognize three other award winners this year <unk> and our <unk> factory when the leadership award for his work on the electromechanical value stream.
Eric: And some of his achievements on our previous call.
Eric: Over the last couple of years Ludo has become a real lean Guru and I've enjoyed watching him grow as a leader.
Eric: Please turn to slide five.
Eric: For the first time, we created an awards recognize the implementation of the Manitowoc way at our growing service locations.
Aaron H. Ravenscroft: Our Ankeny, Iowa, location won the inaugural award for a mobile station that they developed to complete dielectric testing on booms in the field. Previously, we had to lift the 250-pound device onto the back of a flatbed truck, which wasn't very safe, it was pretty clumsy to use, and it didn't look very professional. Now the service technicians can simply pull the device onto a crane in the field. Well done to the team. Please turn the slide on.
Eric: The Iowa location won the inaugural award for mobile station that they develop to complete dielectric testing on booms in the field previously we had to lift the 250 pound device under the vacuum of flatbed trucks, which wasn't very safe it was pretty clumsy views and it didn't look very professional.
Eric: Now all of the service technicians can simply pull the device through a crane in the field well done to the team.
Eric: Please turn to slide six.
Aaron H. Ravenscroft: And finally, the Crawler Crane Value Stream and Chidi Grove won the award for the best guys in. In fact, a couple of investors helped us in the early stages of this project. In the previous process, we welded large boom inserts as one unit, building scaffolding around the part as it got larger, with the application of a little ingenuity and some elbow grease.
Eric: And finally, the crawler crane value stream in Shady Grove, when the award for the Best guidance. In fact, a couple of investors helped us in the early stages of this project and the previous process. We've all had large boom inserts as one unit building scaffolding around the park as it got larger.
Eric: With the application of a little engineering and some elbow grease. The team made the process progressive in nature and now we while the unit is sections imagine.
Aaron H. Ravenscroft: The team made the process progressive in nature, and now we weld a unit of section... Imagine making sub-assemblies that are welded into the final part. This has significantly improved our safety and quality, putting our welders in a much better ergonomic position to weld apart, and as a result, improving productivity by eliminating 750 hours of the process. Great job by the team and congratulations. Please go to the next slide,
Eric: Imagine, making sub assemblies that are welded into the final part this.
Eric: This has significantly improved our safety and quality, putting our welders and a much better ergonomic positioned well depart and as a result, improving productivity by eliminating 750 hours from the process.
Speaker Change: Great job by the team and congratulations.
Speaker Change: Please move to slide seven.
Aaron H. Ravenscroft: Turning our attention to the market, we generated orders of $476 million during the quarter. Our backlog ended the year at $917 million. While the order rate was down significantly from the anomaly of the fourth quarter of 2022, this was still a good showing considering how slow the European tariff-free market has been on a regional basis. The Americas remains pretty steady. The elementary levels remain reasonable.
Speaker Change: Turning our attention to the market, we generated orders of $476 million during the quarter.
Speaker Change: Backlog ended the year at $917 million.
Speaker Change: While the order rate was down significantly from the anomaly in the fourth quarter of 2022.
Speaker Change: It was still a good showing in considering how slow the European tower Crane market has been.
Speaker Change: On a regional basis the.
Speaker Change: The Americas remains pretty steady dealer inventory levels remain reasonable utilization rates at crane operators have been strong and rental rates have held.
Aaron H. Ravenscroft: Utilization rates at crane operators have been strong, and rental rates have held. I believe that our boom truck business is in a great position for 2024, while I expect our all-terrain and rough-terrain demand to be relatively steady, even though dealer inventory is a tad heavier than we'd like. Given the impending fallout from the commercial real estate market, I expect tower crane demand to be anemic, although this market is pretty small in the Americas. In Europe, it's a tale of two halves.
Speaker Change: I believe that our boom truck business is in a great position for 2024, while we expect our all terrain and rough terrain demand to be relatively steady, even though dealer inventory is a tad heavier than we'd like.
Speaker Change: Given the impending falloff from the commercial real estate market I expect tower crane demand to be anemic. Although this market is pretty small in the Americas.
Speaker Change: In Europe, it's a tale of two halves demand for tower cranes is very very slow.
Aaron H. Ravenscroft: Demand for tower cranes is very, very slow. Looking at the latest housing permit data, on a trailing 12-month basis, France is down 24%, and Germany is down 28%. Rental rates in France for top-selling cranes have been under a lot of pressure. In addition, dealer inventory for Subware-Acting Cranes in Germany remains very high. On the other hand, demand for mobile cranes in Europe continues to hold up. Rental rates definitely have inched up with inflation, and the large rental houses are well utilized and actively refreshing the fleet. Turning to the Middle East, the overall market remains robust, but we expect Turkey to be a headwind. In the aftermath of the devastating earthquakes last February, demand surged to support the reconstruction of the areas affected. Nationally, we don't expect this to repeat.
Speaker Change: Looking at the latest housing permit data on a trailing 12 month basis, France is down 24% and Germany is down 28% rental rates in France for top selling cranes have been under a lot of pressure.
Speaker Change: In addition dealer inventory for self erecting cranes in Germany remains very high.
Speaker Change: On the other hand demand for mobile cranes in Europe continues to hold up rental rates definitely inched up.
Speaker Change: The inflation and the large rental houses are well utilized and actively refreshing their fleets.
Speaker Change: Turning to the middle East the overall market remains robust and we expect Turkey to be a headwind in the aftermath of the devastating earthquake February demand surge to support the reconstruction of the areas affected nationally we don't expect this to repeat.
Aaron H. Ravenscroft: The activity in Saudi Arabia, however, continues to move forward. Not surprisingly, given the complexity and enormous scale of these projects, we have seen a few delays, but nothing to create concern. During my visit to the region in December, everyone had the same story.
Speaker Change: The activity in Saudi Arabia, However continues to move forward not surprisingly given the complexity and enormous scale of these projects we have seen a few delays, but nothing to create concern.
Speaker Change: During my visit to the region in December everyone has the same story.
Aaron H. Ravenscroft: With the 2029 Asian Winter Games, the World Expo coming in 2030, and the World Cup in 2034, all of the major projects that have been revealed must be executed, except for the wine project in the Elm. As for the line, this continues to have high visibility with the crown prints and is moving forward. But we have reached a stage where they are grappling with how to perform so many extreme engineering features. As a final word on SILI, I highly recommend that you research the Six Flannings Cadillac Project. This is one of the most impressive construction sites that I've ever visited. Photon cranes are being utilized to build the world's largest and fastest roller coaster.
Speaker Change: The 2029 Asian Winter games, the World Expo coming in 2030, and the World Cup in 2034, all of the major projects that have been revealed that must be executed.
Speaker Change: For the line project in the home.
Speaker Change: As for the line. This continues to have high visibility with the Crown Prince and is moving forward.
Speaker Change: We have reached the stage, where they are grappling with how they performed so many extreme engineering feats.
Speaker Change: As a final word on Saudi I highly recommend the research the six fundings can be a project.
Speaker Change: This is one of the most impressive construction sites that I've ever visited.
Speaker Change: Tom cranes are being utilized to build the world's largest and fastest rollercoaster. A park is expected to open in late 2020 for construction and the Arrow will continue well into the next decade as they build a formula one race track.
Aaron H. Ravenscroft: The park is expected to open in late 2024, and construction in the area will continue well into the next decade as they build a Formula One racetrack and a soccer stadium as well as the necessary accommodations. And finally, I'd like to briefly comment on Asia Pacific. After my visit in January, I felt the situation in China's construction market was even more dire than described in the news. There are lots of cranes in the air still, but you don't see many cranes moving on job sites, which translates to projects being suspended. The local construction market is in a depression, and I don't think anyone knows when this will turn around. While our China revenue is immaterial on a consolidated basis, the bigger concern that I have is the level of intensity at which Chinese manufacturers continue to expand globally. Apply this to China. We are starting to build momentum in Hong Kong and Singapore, and South Korea. Similar to Europe, large commercial construction has slowed, impacting power pains, but the heavier infrastructure markets will continue to support low crane demand. And finally, Australia continues to hold up.
Speaker Change: And the soccer stadium as well as the necessary combinations.
Speaker Change: And finally I'd like to briefly comment on Asia Pacific.
Speaker Change: After my visit in January I felt the situation in China's construction market is even more dire than described in the news.
Speaker Change: There are lots of cranes in the air still but you don't see many cranes moving on the job sites, which translates to projects being suspended.
Speaker Change: The local construction market is in a depression and I don't think anyone knows when this will turn while.
Speaker Change: While our China revenue is immaterial on a consolidated basis, the bigger concern that I have is the level of intensity, which Chinese manufacturers continue to expand globally.
Speaker Change: Outside of China.
Speaker Change: We are starting to build momentum in Hong Kong, and Singapore, South Korea, similar to Europe large commercial construction that slowed impacting tower cranes, but the heavier infrastructure markets will continue to support global Crane demand.
Speaker Change: And finally, Australia continues to hold up.
Brian P. Regan: As long as the Australian dollar stays above 60 cents to the euro, I expect crane demand to be solid. With that, I'll pass it over to Brian to walk you through the financials before I close with an update on our strategy. Thanks, Aaron. And good morning, everyone.
Speaker Change: As long as the Australian dollar stays above 60 to the Euro I expect crane demand to be solid.
Speaker Change: With that I'll pass it over to Brian to walk you through the financials before I close with an update on our strategy.
Brian Regan: Thanks, Aaron and good morning, everyone. Please move to slide eight.
Brian P. Regan: Please move to slide eight. As a reminder, we entered the fourth quarter with difficult year-over-year comparables and an expected unfavorable mix due to the softness in the European tower crane market. This held true, and the fourth-quarter results were in line with our expectations. Turning to orders, during the fourth quarter, we had orders of $476 million, a decrease of 33% from a year ago. Foreign currency favorably impacted orders by $9 million. Our December 31st backlog was $917 million, a year-over-year decrease of 13%, and was favorably impacted by $9 million from changes in foreign currency exchange rates. Net sales in the fourth quarter were $596 million, and they decreased 4% from a year ago.
Brian Regan: As a reminder, we entered the fourth quarter with difficult year over year comparable and expected unfavorable mix due to the softness in the European tower Crane market. This held true in the fourth quarter results were in line with our expectations.
Brian Regan: Turning to orders during the fourth quarter, we had orders of $476 million.
Brian Regan: Decrease of 33% from a year ago foreign currency favorably impacted orders by $9 million.
Brian Regan: Our December 31 backlog was $917 million a year over year decrease of 13% and was favorably impacted by $9 million from changes in foreign currency exchange rates.
Brian Regan: Net sales in the fourth quarter were $596 million and decreased 4% from a year ago.
Brian P. Regan: The year-over-year decrease was primarily driven by softness in our European tower crane business. This impact was partially offset by global pricing efforts and product mix in the Americas. Net sales were favorably impacted by $9 million from changes in foreign currency. SG&A expenses were $88 million, which included a $10 million charge related to a legal matter with the U.S. Environmental Protection Agency.
The year over year decrease was primarily driven by softness in our European tower Crane business.
Brian Regan: This impact was partially offset by global pricing efforts and product mix in the Americas.
Brian Regan: Net sales were favorably impacted $9 million from changes in foreign currency.
Brian Regan: SG&A expenses were $88 million, which included a $10 million charge related to a legal matter with the U S Environmental protection agency excluding.
Brian P. Regan: Excluding the impact of this charge, SG&A expenses as a percentage of sales were 13%, relatively flat year over year; foreign currency unfavorably impacted SG&A expenses by $2 million year over year. Our adjusted EBITDA for the fourth quarter was $37 million, a decrease of 29% year-over-year. The adjusted EBITDA margin was 6.1%, a decrease of 220 basis points over the prior year, primarily due to the unfavorable product. (Inaudible) Our GAAP diluted loss per share in the quarter was $0.23. On an adjusted basis, diluted income per share was $0.09, a decrease of $0.65 from the prior year.
Brian Regan: Excluding the impact of this charge.
SG&A expenses as a percentage of sales were 13% relatively flat year over year.
Brian Regan: Foreign currency unfavorably impacted SG&A expenses by $2 million year over year.
Brian Regan: Our adjusted EBITDA for the fourth quarter was $37 million, a decrease of 29% year over year. The adjusted EBITDA margin was six 1% a decrease of 220 basis points over the prior year, primarily due to the unfavorable product mix.
Our provision for income taxes in the quarter was $6 million as a reminder, we have tax valuation allowances established for certain countries and therefore losses in those countries are not available to offset income tax expense in profitable jurisdictions.
Our GAAP diluted loss per share in the quarter was 23.
Brian Regan: On an adjusted basis diluted income per share was <unk> <unk>, a decrease of <unk> 65 from the prior year.
Brian P. Regan: Looking at the full year, our 2023 orders totaled $2,082,000,000, relatively flat year-over-year. However, on a currency-neutral basis, orders decreased $32,000,000. Net sales for the full year were $2,228,000,000, a 10% increase over the prior year. The increase was primarily due to the progress made on our Cranes Plus 50 strategy, the impact of higher crane volume in the Americas and MIAT, partially offset by lower tower crane sales in URAF. Adjusted EBITDA for the full year was $175 million, an increase of 23% year-over-year. As a percentage of sales, the adjusted EBITDA margin increased 90 basis points over the prior year to 7.9%. Our GAAP diluted income per share for the full year was $1.09.
Brian Regan: Looking at the full year, our 2023 orders totaled $2 billion to $82 million relatively flat year over year on a currency neutral basis orders decreased $32 million.
Brian Regan: Net sales for the full year were $2 billion $228 million a.
Brian Regan: A 10% increase over the prior year.
Brian Regan: The increase was primarily due to the progress made on our cranes plus 50 strategy the impact of higher Crane volume in the Americas, and EMEA, partially offset by lower tower Crane sales in Europe.
Brian Regan: Adjusted EBITDA for the full year was $175 million, an increase of 23% year over year as a percentage of sales. The adjusted EBITDA margin increased 90 basis points over the prior year to seven 9%.
Brian Regan: Our GAAP diluted income per share for the full year was $1 nine.
Brian P. Regan: On an adjusted basis, diluted income per share was $1.52, a 43% increase from the prior year. Please turn to slide nine. On our Q3 earnings call, we targeted a $70 million reduction in our inventory over the last three months of the year. On a currency-neutral basis, we reduced our inventory by $68 million, slightly short of that target. On a year-over-year basis, networking capital as a percentage of sales increased 90 basis points to 21%. This was primarily driven by higher finished goods inventory. Some of this was a consequence of our higher production levels, but we still have more work to do on finished goods. Moving to cash flows, we generated $63 million of cash from operating activities during the year. Our generation of operating cash flows was negatively impacted by the timing of shipments during the fourth quarter. Capital expenditures were $77 million, of which approximately $23 million was for strategic growth in our rental business. We ended the year with a cash balance of $34 million. Total outstanding borrowings under the ABL decreased $20 million during the year, leaving $60 million outstanding.
Brian Regan: On an adjusted basis diluted income per share was $1 52.
Brian Regan: A 43% increase from the prior year. Please.
Brian Regan: Please turn to slide nine.
Brian Regan: On our Q3 earnings call, we targeted at $70 million reduction to our inventory over the last three months of the year.
Brian Regan: On a currency neutral basis, we reduced our inventory by $68 million slightly short of that target.
Brian Regan: On a year over year basis, net working capital as a percentage of sales increased 90 basis points to 21%.
Brian Regan: This was primarily driven by higher finished goods inventory. Some of this was a consequence of our higher production levels, but we still have more work to do on finished goods.
Brian Regan: Moving to cash flows we generated $63 million of cash from operating activities. During the year. Our generation of operating cash flows was negatively impacted by the timing of shipments during the fourth quarter.
Brian Regan: Capital expenditures were $77 million of which approximately $23 million was for strategic growth in our rental fleet.
Brian Regan: We ended the year with a cash balance of $34 million total outstanding borrowings under the ABL decreased $20 million during the year, leaving $60 million outstanding.
Brian P. Regan: Our net leverage ratio was 1.9 times as of December 31, 2023, well under the targeted three times, and total liquidity was $280 million. Please turn to slide 10. As we look ahead to 2024, we enter the year with a strong backlog in the Americas but expect ongoing softness in the European tower crane market. The impact of this unfavorable mix is reflected in our outlook. Our 2024 guidance is as follows: net sales of $2.275 billion to $2.375 billion, adjusted EBITDA of $150 million to $180 million, and depreciation and amortization of $63 million to $67 million. Interest expense of $32 million to $34 million.
Brian Regan: Our net leverage ratio was one nine times as of December 31, 2023, well under the targeted three times and total liquidity was $280 million.
Brian Regan: Please turn to slide 10.
As we look ahead to 2024, we entered the year with a strong backlog in the Americas, but expect ongoing softness in the European tower Crane market the.
Brian Regan: The impact of this unfavorable mix is reflected in our outlook. Our 2024 guidance is as follows.
Brian Regan: Net sales of $2 $2 75 billion to $2 $3 75 billion.
Brian Regan: Adjusted EBITDA of $150 million to a $180 million.
Brian Regan: Depreciation and amortization of 63 million to $67 million.
Brian Regan: Interest expense of $32 million to $34 million provision.
Aaron H. Ravenscroft: Provision for income tax expense of $18 million to $22 million. Adjusted diluted earnings per share of $0.95 to $1.55. Capital expenditures of $60 million, of which $25 million relates to rental fleet growth. Free cash flows of $30 million to $60 million. With that, I will now turn the call back to Aaron. Thank you, Brian.
Brian Regan: Provision for income tax expense of 18 million to $22 million.
Brian Regan: Adjusted diluted earnings per share of <unk> 95 to $1 55.
Brian Regan: Capital expenditures of $60 million of which $25 million relates to rental fleet growth.
Brian Regan: Free cash flows of 30 million to $60 million with that I will now turn the call back to Erin. Thank you Brian entering 2023, we expect to be able to look a lot like 2022 and overall it was much better as we enter 2024, we anticipate global demand for mobile brings to be strong. Unfortunately, however, we will face difficult comparisons in the <unk>.
Aaron H. Ravenscroft: Entering 2023, we expect the year to look a lot like 2022, and overall, it was much better. As we enter 2024, we anticipate global demand for mobile cranes to be strong. Unfortunately, however, we'll face difficult comparisons in the first half of the year due to ongoing softness in the European tower crane business. This dynamic is reflected in our 2024 expectations. Please turn to slide 11.
Erin: First half the ongoing softness in the European Tower Crane business. This dynamic is reflected in our 2024 expectations.
Please turn to slide 11.
Aaron H. Ravenscroft: The rocky road to recovery since the COVID pandemic continues, and we await demand from the U.S. Infrastructure Bill. In the meantime, we remain committed to our cranes plus 50 journey to reduce our cyclicality and increase our margins by growing our aftermarket. We recently refreshed our strategy with a few tweaks, and I thought it would be appropriate to provide an update on our four breakthrough initiatives. Starting with our European power crane business, although we have not landed any acquisitions, we continue to grow our rental fleet as an avenue for generating rental income, building our used sales efforts, and increasing our service work. During 2023, we increased our fleet from 124 to 149 units.
Erin: The Rocky road recoveries since the Covid pandemic continues and we await demand from the U S infrastructure Bill in the meantime, we remain committed to our trains plus 50 journey to reduce our cyclicality and increase our margins by growing our aftermarket.
Erin: We recently refreshed our strategy with a few tweaks and I thought it was appropriate to provide an update on our four breakthrough initiatives.
Erin: Starting with our European Tower Crane business, although we have not landed any acquisitions, we continue to grow our rental fleet as an avenue in generating rental income building our used sales efforts and increasing our service work. During 2023, we increased our fleet from 124 to 149 units in terms of.
Aaron H. Ravenscroft: In terms of acquisitions, we've been active in this space, but unfortunately, the dynamic nature of the market has made it difficult to land a deal. Moving to the next breakthrough, we adjusted our Belt and Road Initiative to emphasize our efforts in the Middle East. During 2023, we launched two tower crane models to support this rapidly growing region, the first of which can be found at the Six Flags construction site in Saudi Arabia. In addition, we are investing approximately $3 million in our China factory to improve our capability and throughput to manufacture large tower cranes.
Physicians, we've been active in this space, but unfortunately, the dynamic nature of the market is maybe difficult to land a deal.
Erin: Moving to the next breakthrough, we adjusted our belt and road initiative to emphasize our efforts in the Middle East. During 2023, we launched two tower Crane models to support this rapidly growing region. The first of which can be found at the six flags construction site in Saudi in addition, we are investing approximately $3 million in our China factory to improve our capability in <unk>.
Erin: What to manufacture large tower cranes concurrently we are developing three large capacity models that will serve the middle East and will also be a good fit for Hong Kong and Singapore.
Aaron H. Ravenscroft: Concurrently, we are developing three large capacity models that will serve the Middle East and will also be a good fit for Hong Kong and Singapore. Our third breakthrough initiative is to expand our aftermarket in North America. During 2023, we started greenfield locations in Denver, Kansas City, and Aiken, South Carolina, and we added 22 Field Service PECs. To accelerate the efficiency of our new service technicians, we launched a quick-start training program to fast-track the development of proficient revenue-producing technicians while maintaining a path to certified master technicians. Currently, we have roughly 70 students enrolled in this program.
Erin: Our third breakthrough initiative is to expand our aftermarket in North America during.
Erin: During 2023, we started greenfield locations in Denver, Kansas City, and Aiken, South Carolina, and we added 22 field service techs to accelerate the efficiency of our new service technicians, we launched a quick start training program to fast track the development of proficient revenue producing technicians, while maintaining our path to certified master.
Erin: <unk>.
Erin: Currently we have roughly 70 students enrolled in this program.
Aaron H. Ravenscroft: Our acquisitions of an H&H crane business in Aspen have proven to be extremely successful, and now we are in the process of increasing our market share in core territories while seeking additional opportunities to expand. As important, we are focused on increasing our boom truck market share by leveraging the synergies between MGX's geographic reach and Aspen's upfit capability. Lastly, we started to transition our all-terrain initiative to be more aftermarket oriented. Since we began this initiative, we have launched five models, and we have more in the hopper. Your product development will always be a never-ending journey in the all-terrain business.
Our acquisitions of <unk> Crane business in Aspen have proven to be extremely successful and now we are in the process of increasing our market share in core territories, while seeking additional opportunities to expand.
Erin: As important we are focused on increasing our boom truck market share by leveraging the synergies between Mgs's geographic reach and Athens uptick capabilities.
Erin: Lastly, we started to transition our all terrain initiatives to be more aftermarket oriented since.
Erin: Since we began this initiative, we launched five models and we have more in the hopper.
Erin: Product development will always be a never ending journey and the ultra marine business, but.
Aaron H. Ravenscroft: Now that we have a fresh lineup of cranes, we need to accelerate the aftermarket growth in this space. Within Europe, we are learning to become more flexible and agile with our customers in terms of aftermarket support. During 2023, we added 15 field service techs and hired three parts and service sales managers. In addition, after a successful trial period in 2023, we have begun to proactively offer maintenance agreements. And finally, our Manitowoc Way team has been kaizen-ing our service facilities in Langenfeld, Germany, to increase capacity to rebuild cranes. The All-Terrain Crane Initiative is truly global in scope. For example, in Latin America, we sold 10 used ATs during 2023. These units were trade-ins from Europe.
Erin: Now, let me have a fresh lineup of cranes, we need to accelerate the aftermarket growth in this space.
Within Europe, we are learning to become more flexible and agile with our customers in terms of aftermarket support during 2023, we added 15 field service techs and hired three parts and service sales managers. In addition, after a successful trial period in 2023, we have begun to proactively offer maintenance agreements and finally, our Manitowoc way.
Erin: <unk> team has been <unk>, our service facilities in <unk>, Germany to increase capacity to rebuild cranes.
Erin: The altering Crane initiative is truly global in scope for example in Latin America. We sold 10 used ATM. During 2023. These units were trade ins from Europe.
Aaron H. Ravenscroft: On the one hand, this helps us in strategic deals with key accounts in Europe. On the other hand, this helps us compete with Chinese competitors in South America while growing the local population of our cranes. This, in turn, drives future parts and service sales. Concurrently, we nearly doubled our field service revenue during 2023 and added a location in Peru to serve local mining customers. We have a long way to go in this endeavor, but I'm really pleased with the progress that we've made. Please turn to slide 12.
Erin: On one hand, this helps us on strategic deals with key accounts in Europe on the other hand. This helps us compete with Chinese competitors in South America, while growing the local population of our cranes.
Erin: This in turn drives future parts and service sales.
Erin: Currently we nearly doubled our field service techs during 2023 and added a location in Peru to serve local mining customers.
Erin: We have a long way to go in this endeavor, but I'm really pleased with the progress that we've made.
Erin: Please turn to slide 12.
Aaron H. Ravenscroft: During our last analyst call, we restated our financial ambitions, resetting our targets to reflect the gains that we've made in the last couple of years. Today, I'd like to draw your attention to a new metric that we are emphasizing, ROIC. While we continue to drive for margin expansion, we felt that this metric also helps emphasize effective capital allocation. Please turn to slide 13.
Erin: On our last analyst call, we restated our financial ambitions resetting our targets to reflect the gains that we've made in the last couple of years today I'd like to draw your attention to a new metric that we are emphasizing.
Erin: ROIC.
Erin: While we continue to drive for margin expansion. We felt that this metric also helps emphasize effective capital allocation. Please turn to slide 13 as you can see by the historical chart. It's been a long journey since 2016 and it is a great achievement to end 2023 with a return of 11, 2%.
Aaron H. Ravenscroft: As you can see from the historical chart, it's been a long journey since 2016, and it's a great achievement to end 2023 with a return of 11.2 percent. Our long-term goal is 15 percent. Globally, the economy has been on an uneven road since 2020, but at Manitowoc, we continue to execute our long-term strategy to reduce our cyclicality and increase our margins by growing our aftermarket. I remain optimistic about the crane market in the long run. Europe has a huge need for housing.
Our long term goal of 15%.
Erin: Globally. The economy has been on an uneven road since 2020.
Erin: But at Manitowoc, we continue to execute our long term strategy to reduce our cyclicality.
Erin: And increase our margins by growing our aftermarket I remain optimistic about the crane market long term.
<unk> has a huge need for housing Saudi vision 2030 is in full swing and the U S infrastructure Bill is poised to generate demand.
Operator: Saudi Vision 2030 is in full swing, and the U.S. Infrastructure Bill is poised to generate demand. This is exactly the kind of economic backdrop that the industry needs to refresh the aging Korean population around the world. With that, Operator, please open the line for questions. At this time, I would like to remind everyone that in order to ask a question, please press star, then number one on your telephone keypad. We'll pause for a moment to compile the Q&A raw. Your first question comes from the line of Jay Ravich from Goldman Sachs. Your line is open. Morning, Jay. Hey Jay.
Erin: It is exactly the kind of economic backdrop that the industry needs to refresh the aging creme population around the world.
Speaker Change: With that operator, please open the line for questions.
Speaker Change: At this time I would like to remind everyone in order to ask a question. Please press Star then the number one on your telephone keypad will pause for a moment to compile the Q&A roster.
Speaker Change: First question comes from the line of Jay Rawitch from Goldman Sachs. Your line is open.
Good morning, Jay Jay.
Speaker Change: Hi, This is Adam on for Jerry Thanks for taking my question.
Operator: Hi, this is Adam from GRE. Thanks for taking my question. I was wondering if you could just talk about where labor hours per unit stand today compared to the levels you were seeing pre-COVID. And if they do normalize to historical levels, how much of a margin tailing could that mean for your business? I'm not sure I understand your question, Adam, is it about the cost of labor?
Adam: Hey, I was wondering if you could just talk about where labor hours per unit stand today compared to the levels you were seeing pre COVID-19.
Speaker Change: And if they do normalize.
Speaker Change: To historical levels, how much of a margin tailwind could that mean for your business.
Speaker Change: I'm not sure I understand your question Adam is it.
Speaker Change: Cost of labor or is it efficiency.
Aaron H. Ravenscroft: Or is it efficiency? What do you think? Yeah, just labor hours today compared to pre-COVID levels, where are they versus historical levels? I don't think it's, I don't think it's applicable because there are so many, so much mix of hours depending on the machines that we're making. We're always looking to improve our efficiency throughout the plant, but I'm not sure we've ever given that level of granularity from an hours per unit perspective.
Speaker Change: Yes, just labor hours today compared to pre COVID-19 levels.
Speaker Change: Where are they versus historical levels.
Speaker Change: I don't think its I don't think its applicable because theres. So many so.
Speaker Change: So much mix of hours, depending on the machines that were making.
Speaker Change: I mean, we're always looking to improve our efficiencies throughout the plant in but I'm not sure we've ever given that level of granularity.
Speaker Change: From an hours per unit perspective.
Aaron H. Ravenscroft: Got it. And then can you just update us on your aftermarket performance? Any signs of destocking in the parts of the business where you sell through dealers? No, I mean, the aftermarket business has been good. We've got some strong goals for this year.
Got it and then can you just update us on your after market performance any signs of Destocking in parts of the business, where you sell through dealers.
Speaker Change: No I mean, the aftermarket business has been good we've got some strong goals for this year.
Aaron H. Ravenscroft: Some of it, I think, we're starting to flatten out because we had such strong growth the last couple of years. But as we said on the call, those service techs we've added, and we view those as a path to continue to grow revenue. But I haven't, we haven't seen any major de-stocking. And then last one from me.
Speaker Change: Some of it I think we will starting to flatten out because we had such strong growth. The last couple of years, but as we said on the call. Those service techs, we've added and we view those as a path to continuing to grow the revenue.
Speaker Change: But I haven't we haven't seen any major destocking.
Speaker Change: And then last one from me.
Brian P. Regan: With supply chain performance continuing to normalize, could decremental margins be relatively muted as improved productivity offsets lower volumes? I think in the mobile business, yeah, in the Americas, but when you look at, you know, what's hitting us in the face is, and what we've been talking about is, the tower crane business in Europe. So that's, that's a pretty significant impact on us in 24.
Speaker Change: We supply chain performance continuing to normalize could decremental margins to be relatively muted as.
Speaker Change: As improved productivity offsets lower volumes.
Speaker Change: I think.
And in the mobile business, yet in the Americas, but when you look at whats, what's hitting us in the faces and what we've been talking about is the is the tower crane business in Europe.
Speaker Change: That's that's a pretty significant impact to us in 'twenty four and that's what's reflected in our guidance.
Brian P. Regan: And that's what's reflected in our guidance. Great. Thanks so much.
Speaker Change: Great. Thanks, so much.
Operator: Your next question comes from the line of Meg Dobre from Baird: please go ahead. Hey, good morning. Good morning, Eric. Hey, it's actually Joe on for me this morning.
Speaker Change: Your next question comes from the line of Mig <unk> from Baird. Please go ahead.
Mig: Hey, good morning, guys.
Mig: Exactly exactly Joe on for Mig. This morning, Good morning, Hey, Joe how are you doing this morning.
Operator: Good morning. Oh, hey, Joe. How are you doing? Doing well. Thanks. I had a couple questions about guidance.
Mig: Thanks.
Joe: Couple of questions around guidance.
Mig: At the midpoint of your guidance assumes net sales of 4%.
Brian P. Regan: At the midpoints, your guidance assumes net sales of 4%, but an EBITDA margin down 80 basis points. I know you mentioned an unfavorable mix, but can you talk about any other year-over-year margin headwinds in the guidance? The biggest piece of it all is the decline in the EU tower crane business. So it's not just mixed in terms of standard margin, but it's also under absorption at those factories.
Mig: The EBITA margin down 80 basis points.
Mig: I know you mentioned entre promo on favorable mix.
Mig: Can you talk about any other year over year margin headwinds in the guidance.
Mig: The biggest the biggest piece of it all is that the.
Mig: And in the EU tower Crane business. So it's not just mix in terms of standard margin, but it's also under absorption of those factories and you saw it really in Q4 I mean, our margin in Q4 was six 1%.
Brian P. Regan: Yeah, and you saw it really in Q4. I mean, our margin in Q4 was 6.1%. The implied midpoint is at 7.1%, so obviously, better than what we saw in Q4. But, as Aaron mentioned, it's really that tower crane mix.
Mig: The implied midpoint is at seven 1%, so obviously better than what we saw in Q4 so.
Mig: As Aaron mentioned, it's really that powertrain mix.
Brian P. Regan: Yep. Okay. It makes sense.
Speaker Change: Okay. Okay. Thanks, and then any thoughts on quarterly cadence for sales in any of the country with a year.
Brian P. Regan: And then any thoughts on quarterly cadence for sales and EBITDA through the year? Yeah, I mean, we generally see Q3 as our lowest quarter. Q1 from a comparable perspective, you know, the first half, in particular, was stronger for tower cranes last year. And we're not, you know, that headwind is really impacting us in the first half, Q1 in particular. So, you know, Q1 and Q2 from a comp standpoint will definitely be worse, and then Q3, and Q4 should be normal ones.
Speaker Change: Yes, I mean, we generally see Q3 is our lowest quarter.
Speaker Change: Q1 from a from a comparable perspective, the first half in particular was stronger for tower cranes last year.
Speaker Change: And we're not.
Speaker Change: Headwind is really impacting us in the first half Q1.
Speaker Change: In particular, so Q1 and Q2 from a comp standpoint will definitely be worse than Q3 Q4, it should normalize.
Brian P. Regan: Got it. Okay. And then, maybe one more. Any assumptions around crane sails versus non-crane sails in the guidance?
Speaker Change: Got it Okay, and then maybe one more.
Speaker Change: The assumptions around crane sales.
Speaker Change: Noncash Crane, Hey, I'll turn to guidance.
Brian P. Regan: We don't give that level of granularity, but as Aaron mentioned, we do have, you know, an expectation that we'll continue to grow the non-new machine cell. Okay. All right. Good luck, guys. Thanks.
Speaker Change: We don't we don't give that level of granularity, but as Aaron mentioned, we do have an expectation that we will continue to grow the non new machine sales.
Speaker Change: Okay, Alright, good luck guys. Thanks.
Operator: Thanks, Joe. Your next question comes from the line of Seth Weber from Wells Fargo. Please go ahead. Good morning, Seth.
Speaker Change: Thanks, Joe.
Speaker Change: Your next question comes from the line of Seth Weber from Wells Fargo. Please go ahead.
Operator: Hi guys, this is a good morning. This is Larry on set this morning.
Speaker Change: Good morning, Hi, guys. Good morning. This is Larry on for Seth. This morning, how are you guys Larry.
Operator: How are you guys doing, Larry? How are you doing? Oh, good. I'm doing great. Thanks for taking the questions. I just wanted to ask about orders in January after the light fourth quarter. What are you guys seeing? You know, obviously, orders were down 33%. You did have a comp issue, but just wondering how they're trending in January so far. Yeah, January was a good month.
Larry: How are you doing.
Good I'm doing great. Thanks for taking the questions I just wanted to ask about orders in January after the life fourth quarter. What you guys are seeing obviously orders were down 33% you did have a comp issue, but I was just wondering how theyre trending in January so far.
January was a good month. So we were just shy of $200 million.
Aaron H. Ravenscroft: So we were just shy of 200 million. I think we're continuing on the same path that we've been on for the last several quarters. Okay, great. Obviously, you guys have been calling out the EU tower, you know, headwinds from the tower market. What are you guys looking for to kind of look for a bottom or, you know, maybe, you know, any kind of firming up there?
Larry: Okay.
Speaker Change: I think we would continue on the same path that we've been on for the last several quarters.
Speaker Change: Okay. Great. Obviously, you guys have been calling out the EU tower headwinds from the tower market.
Speaker Change: What are you guys looking for to kind of look for a bottom or maybe.
Speaker Change: Any kinds of.
Any signs of firming up there.
Aaron H. Ravenscroft: Yeah, I mean, the first thing we're looking at is just the regulatory environment and what we're seeing from the government and stimulus. So Germany made some moves a couple months ago, but it really hasn't hit the construction market yet. So we continue to track the permits, although that's, you know, lagging data. And then, of course, within the business, we track everyone's utilization.
Speaker Change: I mean, the first thing we're looking at is just the regulatory.
Environment and what we're seeing from the government stimulus to Germany made some moves couple months back, but it really hasnt hit the construction market. So we continue to track the permits although that's lagging data and then of course within the business, we track everyone's utilization so.
Aaron H. Ravenscroft: So I think when we look at all those pieces right now, there's not a whole lot of visibility for the first half. I mean, a lot of projects do start in the sort of March, April, May timeframe. I'd say that all of the major players have what they need for those projects, for the most part. And then, so the next, I mean, to me, the next big sign is really going to come in the September-ish timeframe. Because summer always slows down, there's not a whole lot of activity in France and Germany, in particular, in August.
I think when we look at all of those pieces right now theres not a whole lot of visibility for the first half and a lot of projects do start in sort of March April may timeframe.
Speaker Change: I would say that all of the major players have what they need for those projects for the most part and then so that to me. The next big signs really going to come in probably September ish timeframe.
Speaker Change: Because of some are always slows down there is not a whole lot of activity in France, and Germany in particular.
Speaker Change: Then in August so <unk>.
Aaron H. Ravenscroft: September is when things start to come back on, and we've got our normal. And I just want to add, from a longer-term standpoint, I think we're excited that there are housing shortages all across Europe. So from a long-term standpoint, I think business is good for us. It's just when it's going to come back.
Speaker Change: September is when things start to come back on and we've got our normal.
Speaker Change: Winter campaign.
Speaker Change: And I'd, just say just adding to that from a longer term standpoint.
Speaker Change: We're excited.
There are housing shortages all across Europe. So from a from a long term standpoint, I think the business is good for us it just when it is going to come back.
Brian P. Regan: Got it. Thanks a lot for your time, guys. Thank you. Your next question comes from the line of Tami Zakaria from Manitowoc. Please go ahead. Your line is open. Morning, Tami. Hi, this is Alec.
Speaker Change: Got it thanks, a lot for your time guys.
Speaker Change: Thank you.
Speaker Change: Your next question comes from the line of Tami Zakaria from Manitowoc. Please go ahead. Your line is open.
Tami Zakaria: This is Alex.
Operator: Thank you for taking the question. Hey, I was wondering if you could provide further color on the sort of price and cost for 2024. Given current conditions and power demand, I'm assuming continued added pressure from Chinese competition in the Middle East, and the Japanese yen remains weak at $150. And on the cost side, do you expect labor and elevated high-strength steel prices to remain a challenge for 2024? Okay, so talking about price versus cost, I'd say the answer is yes and no. In terms of normalization, we've sort of gone back to normal, let's say. But I think you pointed out many of the key points there.
Thank you for taking my questions.
Tami Zakaria: I was wondering if you could provide further color on sort of pricing costs for 2024, given current conditions and tower demand.
I'm, assuming continued added pressure from Chinese competition in the Middle East.
Tami Zakaria: <unk> got 150, and the cost side do you expect labor.
Tami Zakaria: Weighted high strength steel prices remain a challenge was 124.
Speaker Change: Okay. So talking about price cost I would say the answer is yes, and no in terms of normalization, we've sort of gone back to normal, let's say, but I think you pointed out many of the key points. There. So in the United States when you've got competitors shipping and when the yen is $1 50, if there is going to put pressure competitive pressure out there as well as.
Aaron H. Ravenscroft: So in the United States, when you've got competitors shipping in when the yen is 150, there's, you know, going to put competitive pressure out there as well as steel prices. I mean, the reality is the current tariffs on steel are not favorable for US manufacturers. You have steel in Europe is one third less than it is in the United States.
Speaker Change: Steel prices I mean, the reality is the current tariffs on steel or not favorable for U S manufacturers yet.
Speaker Change: <unk> in Europe.
One third less than it is in the United States. So, yes, I would say that within the U S. There is some it's still pretty competitive.
Aaron H. Ravenscroft: So yeah, I'd say that within the US, there's some competition, it's still pretty competitive, as competitive as it's been, so until this strong dollar starts to turn the other way, I think we'll continue to have that pressure. In Europe, it's more just about demand, given that demand is so low for tower cranes, but I wouldn't say there's anything irrational there. And in terms of Chinese competition, that's, I'd say, mostly in the Middle East and Asia Pacific for us, and it's been tough, but in most instances, either folks are willing to take Chinese, or they're not, and if they're not, They're in a competitive situation.
Speaker Change: As competitive as it's been so until the strong dollar starts to.
Speaker Change: Turning the other way I think we'll continue to have that pressure in Europe. It's more just about demand given the demand is so low for tower cranes, but I wouldn't say, there's anything irrational there and in terms of Chinese competition. That's I would say, mostly in the middle East and Asia Pac for us and it's been tough, but in most instances either folks who are willing to take Chinese or they're not.
Speaker Change: And if they're not then it's our normal sort of competitive advantage or competitive situations.
Aaron H. Ravenscroft: In terms of headwinds, I think labor has flattened out. I mean, we took a lot of actions last year relative to what our labor rates were. And in terms of steel, I don't think much really changes. I mean, we still have this dynamic where the U.S., with the current tariff situation, is at a disadvantage to all the other major regions for manufacturers. I'd say the labor and inflation normalizes this, but you know, it's normal going into 24.
Speaker Change: In terms of headwinds. So I think labor has been this flatten out I mean, we took a lot of actions last year relative to what our labor rates were.
Speaker Change: And then in terms of steel I don't think much really changes I mean, we still have this dynamic where.
Speaker Change: For the U S with the current tariff situation is at a disadvantage to all the other major regions for manufacturers.
Speaker Change: The labor and freight inflation normalizes this year, but it's.
Speaker Change: Its normal going into 'twenty four.
Aaron H. Ravenscroft: Okay, thanks, that's super helpful. And just a quick follow-up, I'm just curious, just sort of, you know, when we look back at 2023, were there any share shifts in your view, either geographically or product wise, that would be noteworthy? No, not dramatic. I mean, the team did a great job with the mobile cranes in Europe with some of the new product launches we had. Nothing dramatic, but we had some gains there in the United States.
Speaker Change: Okay. Thanks, Thats Super helpful.
Speaker Change: And just a quick follow up I'm just curious.
Speaker Change: When we look at back at 2023.
Speaker Change: Were there any share shifts in your view, either geographically or product wise that would be noteworthy.
No not dramatic I mean team has done a great job with the mobile cranes in Europe.
Speaker Change: With some of the new product launches, we had nothing dramatic that we had some gains there in the United States.
Aaron H. Ravenscroft: I'm pretty steady. Okay, honestly, thank you so much. I'll pass it on. Thank you. Again, if you have a question, please press star 1 on your telephone keypad. And there are no further questions at this time. Mr. Warner, I turn the call back over to you. Thank you. Before we conclude today's call, please note that a replay of our fourth quarter 2023 conference call will be available later this morning by accessing the investor relations section of our website at manitowoc.com. Thank you, everyone, for joining us today and for your continued interest in the Manitowoc Company. We look forward to speaking with you again next quarter. This concludes today's conference call. Thank you for your participation, and you may now disconnect.
Speaker Change: Hold pretty steady.
Speaker Change: Okay understood. Thank you so much I'll pass now.
Speaker Change: Thank you.
Speaker Change: Hey, Ken if you have a question. Please press star one on your telephone keypad.
Speaker Change: And there are no further questions at this time, Mr. Warner I turn the call back over to you.
Speaker Change: Before we conclude today's call. Please note that a replay of our fourth quarter 2023 conference call will be available later this morning by accessing the Investor Relations section of our website at Manitowoc Dot com.
Ion Warner: You everyone for joining us today and for your continued interest in the Manitowoc Company. We look forward to speaking with you again next quarter.
Speaker Change: This concludes today's conference call. Thank you for your participation and you may now disconnect.
Speaker Change: Okay.
Speaker Change: Okay.