Manitowoc Misses Sales and Profit Forecasts
The Manitowoc Company, Inc. (NYSE: MTW – $17.37) reported second-quarter 2015 sales of $885.4 million, a 12.6% decrease from $1,012.8 million in second quarter of 2014, of which $59.7 million, or 46.9%, was caused by unfavorable foreign currency impact. Excluding special items, adjusted income from continuing operations was $30.6 million, or $0.22 per diluted share, in the second quarter, versus $47.8 million, or $0.35 per diluted share, in 2014. Street estimates were for MTW to earn $0.35 per share on sales of $973 million. Second-quarter 2015 net sales in Foodservice were essentially flat, at $407.7 million versus $406.7 million in the second quarter of 2014. Strong sales from cold-side products were offset by unfavorable foreign currency exchange rates and continued weakness in the Asia-Pacific region due to reduced spending by large chains. Second-quarter 2015 net sales in Cranes were $477.7 million, versus $606.1 million in the second quarter of 2014. The decline in sales was primarily due to lower rough-terrain and boom truck sales, which have been significantly impacted by depressed oil and gas markets. Crane operating earnings for the second quarter of 2015 were $26.2 million, down from $54.4 million in the same period last year. This resulted in an operating margin of 5.5 percent for the second quarter of 2015 versus 9.0 percent for the second quarter of 2014. Next year appears to be more promising, but still not to its historical numbers. Manitowoc remains on track regarding the separation of its Cranes and Foodservice businesses, which is anticipated to occur during the first quarter of 2016, and the shares can be held for eventual recovery on that basis.