The Manitowoc Company Inc. (NYSE: MTW – $26.05) tumbled 15% after the construction and food service equipment manufacturer reported adjusted per-share earnings and revenue that missed analyst estimates for the three months ended June 30. Excluding special items, adjusted earnings for the quarter was $47.8 million, or $0.35 per share, lagging the consensus by $0.07. Net sales fell 2.3% year-over-year to $1.013 billion during the quarter and below the Street view by around $47 million. Sales for its crane segment fell 6.4% from year-ago levels offset somewhat by a 4.4% increase for the company’s food-service division. Looking forward to the rest of the year, MTW revised its outlook for revenue from its crane segment, now saying sales likely will be flat to slightly down compared with its prior forecast expecting “modest” top-line growth. It also lowered projected operating margins for the food-service segment from its previous view expecting percentage margins approaching the high teens to a percentage margin now in the mid-teens. While not good news, the shares have managed a nearly 50% gain over the past twelve months and the company’s cyclical business model will remain troublesome until the global economy gets on a better footing. Long-term there is apt to be a need for cranes globally, with demand for construction, infrastructure, and various forms of energy production and transmission equipment. The food service sector is positioned to take advantage of favorable trends, which suggest quick service restaurants are investing heavily in new product offerings. A possible break-up of the company to separate its two major business units has re-surfaced with activists investors looking for the company to spin-off its food service unit. For now, I am going to keep MTW in the aggressive portfolio, but it is indeed a stock to watch.