Manitowoc Sees Q3 Sales Below View, Lowers 2014 Outlook

(RTTNews) - Manitowoc Co. Inc. (MTW), a maker of foodservice equipment and cranes, said Thursday that it expects net sales for the third quarter to be slightly lower than last year, citing a constrained demand environment globally.

The sales outlook is also below analysts' expectations. In addition, the company lowered its full-year revenue and operating margin outlook for the crane and foodservice segments. Shares of the company declined almost 5 percent in extended trades.

For the third quarter, Manitowoc forecast net sales to be just under $1 billion, compared to $1.01 billion in the third quarter of last year. On average, sixteen analysts polled by Thomson Reuters currently expect the company to report revenues of $1.02 billion for the third quarter.

The company projects third-quarter earnings before interest, amortization, restructuring, and tax to be about $90 million, down from $112.4 million in the same period last year.

Glen Tellock, Manitowoc's chairman and chief executive officer said, "Our third-quarter results remain challenged by a constrained demand environment globally. In the Crane segment, sales were further impacted by the North American rough-terrain and boom truck markets, as well as weakness in the Latin America region."

Tellock added, "In addition, Foodservice experienced weakness in select geographic regions, such as Russia and Asia Pacific, as well as certain product categories. Given these results, we are updating our full-year outlook for both Cranes and Foodservice."

For fiscal 2014, Manitowoc now projects crane segment revenues to decline by mid-to-high single-digit percentages, compared to its prior forecast for revenues to be flat to slightly down. It now expects Crane operating margins for the year in the 7 percent range, compared to its prior guidance of high single-digit percentage growth.

In addition, Manitowoc now expects fiscal 2014 foodservice segment revenues to increase in the low-to-mid single-digit percentages, compared to its prior guidance of mid single-digit percentage growth.

The company now expects the segment's operating margins for the year in the 15 percent range, compared to its prior guidance of mid-teens percentages. However, Manitowoc reaffirmed its outlook for full-year capital expenditures of about $90 million.

MTW closed Thursday's trading at $21.53, down $1.25 or 5.49 percent on a volume of 2.36 million shares. In after-hours, the stock further declined $1.02 or 4.74 percent to $20.51.