Manitowoc Q1 Results Miss Estimates, Backs 2014 Outlook

(RTTNews) - Manufacturer of foodservice equipment, cranes and ships Manitowoc Co., Inc. (MTW) reported Thursday a net loss for the first quarter compared to a profit last year, reflecting higher loss on debt extinguishment and a sales decline.

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.

"The first quarter of 2014 played out largely in-line with our expectations, providing the foundation for us to achieve our full-year outlook. The growth we experienced in our Foodservice segment during the quarter, coupled with Cranes' very successful ConExpo trade show in March, underscores the strength of our offerings, as well as the level of innovation we bring to our customers," Chairman and CEO Glen Tellock in a statement.

The Manitowoc, Wisconsin-based company posted a net loss of $8.8 million or $0.06 per share for the first quarter, compared to net income of $10.4 million, or $0.08 per share in the prior-year quarter.

Earnings from continuing operations for the quarter declined to $6.0 million or $0.01 per share from $13.8 million or $0.10 per share last year.

Excluding special items, adjusted earnings from continuing operations for the quarter was $23.7 million, or $0.17 per share, compared to $14.6 million or $0.11 per share in the year-ago quarter.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share for the quarter. Analysts' estimate typically excludes special items.

Net sales for the quarter decreased 5.0 percent to $850.0 million from $894.6 million in the same quarter last year, and missed sixteen Wall Street analysts' consensus estimate of $908.89 million.

The sales drop was attributable to a 14.2 percent decline in crane and related products segment sales to $466.7 million from last year, due to lower level of backlog at the start of the year coupled with some customer-related project delays.

Foodservice equipment segment sales grew 9.3 percent to $383.3 million from last year, driven by continued growth in the Americas and EMEA regions, as well as sales from new products.

Looking ahead to fiscal 2014, Manitowoc continues to expect crane revenue growth to be modest and foodservice revenue growth to be in the mid-single digit percentage. Street is looking for full-year 2014 revenues of $4.20 billion.

"While the global macro-economic landscape remains somewhat pressured, we are committed to leveraging our core competencies and strengths to drive continued performance, including new product introductions, industry-leading aftermarket services and solutions, and operational excellence initiatives," Tellock added.

MTW closed Thursday's regular trading session at $32.28, up $0.50 or 1.57% on a volume of 5.32 million shares. However, the stock lost $1.63 or 5.05% in after-hours trading.