Manitowoc Q3 Results Miss Estimates, Backs 2014 Outlook

(RTTNews) - Manufacturer of foodservice equipment, cranes and ships Manitowoc Co., Inc. (MTW) reported Monday a profit for the third quarter that increased from last year, despite a sales decline, reflecting an income tax benefit.

However, both adjusted earnings per share from continuing operations and quarterly sales missed analysts' expectations. The company also reaffirmed its segment revenue growth guidance for the full-year 2014.

"Our third-quarter results reflect the muted demand environment brought on by uncertainty in the global economy. This cycle has proven to be unlike any other, and our performance in times of uncertainty will depend in large part on our ability to improve the agility of our business by focusing on the areas that are within our control," Chairman and CEO Glen Tellock in a statement.

The Manitowoc, Wisconsin-based company posted net earnings of $73.1 million or $0.53 per share for the third quarter, higher than $10.4 million or $0.39 per share in the prior-year quarter.

Earnings from continuing operations for the quarter increased to $74.4 million or $0.54 per share from $53.8 million or $0.40 per share last year.

Excluding special items, adjusted earnings from continuing operations for the quarter was $50.1 million or $0.36 per share, compared to $54.5 million or $0.40 per share in the year-ago quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.42 per share for the quarter. Analysts' estimate typically excludes special items.

Net sales for the quarter decreased 2.5 percent to $986.3 million from $1.01 billion in the same quarter last year, and missed sixteen Wall Street analysts' consensus estimate of $993.33 million.

The sales drop was attributable to a 6.7 percent decline in crane and related products sales to $569.2 million from last year, due to volume decreases primarily in the boom truck and rough-terrain product categories.

Meanwhile, foodservice equipment sales grew 3.8 percent to 417.1 million from last year, driven by higher sales of hot side brands and ice/beverage equipment, as well as a favorable foreign exchange rate.

The latest quarter included a benefit for income taxes of $18.1 million due to discrete items in the quarter, compared to an income tax expense of $17.0 million in the year-ago quarter.

Looking ahead to fiscal 2014, Manitowoc continues to expect crane revenue to decline in the mid-to-high single-digit percentage and foodservice revenue to grow in the low-to-mid-single digit percentage. Street is looking for full-year 2014 revenues of $3.93 billion.

"We have maintained an unrelenting commitment to innovation, product quality, and reliability, while concurrently executing our Lean manufacturing, sourcing, and cost initiatives across the enterprise. This focus will ultimately position Manitowoc for long-term growth and profitability," Tellock added.

MTW closed Monday's regular trading session at $18.91, down $0.18 or 0.94% on a volume of 3.03 million shares. The stock lost a further $0.26 or 1.37% in after-hours trading.