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Manitowoc CEO Glen Tellock on the outlook for the company’s crane and food services businesses.
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-- very much.
My next guest is the -- of a company in both the food services industry.
And industrial machinery gigantic cranes that are used all over the world -- his company.
Is seeing growth in that very area demand for -- so you know those big cranes oversee construction sites huge ones -- Glenn tell -- Is the chairman CEO and president of Manitowoc company it's joining me now on -- Fox Business exclusive from Green Bay good to see you thank you for being here.
Obsessed with your company know that one because I love watching.
An American manufacturer.
Really do well and this -- surprise me that your numbers in the Americas for the Crane business.
We're good where's the demand really coming from.
Well mostly first -- -- thanks -- for having no show but I would -- and the Crane side mostly from the infrastructure and energy projects.
-- on on obviously -- served service.
Most of that coming from a investments of the -- are making in menu changes.
-- -- boots on the ground we'll stick with the -- business and then get to the food services area boots on the ground everywhere but.
Where's your strongest region X Americus.
Probably the emerging markets you look at Brazil's been good for us some parts of eastern year up parts of Indonesia.
Greater Asia Pacific.
It certainly -- this line areas that we see on cranes are mostly in Europe and China.
Let's give our investors some outlook care when it comes to the US that two year energy contract the energy bill.
The -- your highway bill rather was signed by congress tell me what that will do for your business if there are large scale.
Whether it's highways or any kind of infrastructure spending what will that do for your bottom line.
Why they say it's certainly a benefit -- I would say certainly a six year bill would have done better for us -- from people.
People can plan better over six year highs in the two year horizon -- -- is -- -- get into 2013 fourteen.
That that's where the benefits will be certainly not done this part of the year because I think people Arnold minimal wait and see -- as to what goes through -- -- The fall China.
We talked about this in the past but China first was very welcoming to -- several years ago come bring your cranes we need to build skyscrapers.
And then.
Me personally I felt that they looked at your cranes figured out the intellectual property of them and then slap tariffs on you and then it's just kind of dried up at least it was.
Drying up -- the beginning of 2011.
You struck some partnerships -- -- received orders for Ukraine's does anything look like it'll see an uptick in China demand.
I think you know what what you look at -- slowing growth is really what it is amendments be honest though the China market is still -- -- up 67%.
I think the way it's hit the construction equipment business it is a challenge mainly on the truck Crane business that's where.
Com a lot of competitors have -- in the business there seem to be.
Many many companies that want to get in the truck Crane business.
I think for a lot of our niche products at the higher capacities we still have we still -- areas of opportunity but I can.
I can can you -- I assure you that it's it's still a tough -- there.
I would imagine that they don't want -- you guys doing well when they have their own companies they'd like to see start up.
The food service business sequels about what 44% of your revenues which is a good chunk of it.
Analysts are always saying.
Will they -- that part of it off.
I think you know if you look at we invested heavily in the food service side the business in 2008.
To do exactly what it's doing today and that's take out some of the impact of the sick locality of cranes.
When you mentioned 44% of the revenue but at 65% of the earnings sell as we continue to bring down the the leverage.
-- And certainly is a pretty good -- tandem.
For us.
What's it like right now doing business in America you hear conflicting reports some people say.
We're shutting our wallets were not spending no capital expenditure it's awful until November.
And then their companies like -- who -- investing just give us a sense of what it's like to be the CEO of a heavy industry company like yours right now.
Well it's it's difficult com is is what it is -- but it's -- but it can be done obviously.
I think who internally we we need to manage for -- for the long term strategy there's business sell.
I think he I've met with several customers who said exactly what you said I'm not doing anything until November.
But but at the same time.
Some people still need to invest in projects -- you know people.
Com consumer confidence wallets.
It's down a little bit people still -- outside the home so.
You got a lot of people that are trying to get more footprint through the restaurant she did he get people in the bridges highways -- mean that all helps.
Self see you know it's a tough period but if you go back to 2002009.
For us -- And now we believe this is -- just up and down on the bottom before it really takes off but when I think the worst is behind us certainly.
35 minutes before the closing bell rings and I know -- happy to hear your stock is up 3% today.
But it's also -- while you were talking we started to move higher good this -- and thank you for being here.
Good to see you thanks friend on the show of course Montel lock up Manitoba.
