Manitowoc Q2 Profit Tops View, But Revenues Miss

(RTTNews) - Manufacturer of foodservice equipment, cranes and ships Manitowoc Co., Inc. (MTW) reported Monday a profit for the second quarter that grew from last year, reflecting revenue growth and improved margins in the crane segment.

Adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates by a whisker. The company lowered its crane segment revenue growth guidance for the full-year 2013.

"Our second-quarter results are a byproduct of our ongoing focus on and execution of our strategic initiatives that are expected to generate long-term growth and profitability," Chairman and CEO Glen Tellock in a statement.

The Manitowoc, Wisconsin-based company posted net earnings of $57.6 million or $0.43 per share for the second quarter, sharply higher than $45.3 million or $0.34 per share in the prior-year quarter.

Excluding special items, adjusted earnings for the quarter was $60.3 million or $0.45 per share, compared to $45.0 million or $0.34 per share in the year-ago quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.35 per share for the quarter. Analysts' estimate typically excludes special items.

Net sales for the quarter increased 5.0 percent to $1.05 billion from $997.2 million in the same quarter last year, but missed thirteen Wall Street analysts' consensus estimate of $1.07 billion by a whisker.

The sales growth was attributable to a 7.6 percent increase in crane and related products segment sales to $656.9 million, driven primarily by continued growth in the Americas region amid the increased activity with crawler cranes and large rough-terrain cranes, as well as solid results from Manitowoc Crane Care.

There was also a marginal rise in foodservice equipment segment sales to $389.7 million from last year, driven by sales of new products and growth in the Americas and EMEA regions.

Operating earnings for the quarter grew to $101.6 million from $92.0 million in the same quarter last year, and gross profit was $272.8 million, up from $251.2 million in the prior-year quarter amid margin improvement in the crane segment.

"While a level of caution remains around the broader economic environment, we continue to be confident in the opportunities that lie ahead. Our recent conversations with both Crane and Foodservice customers remain positive, and continue to highlight the strength, reliability, and truly differentiated product offering that has come to define Manitowoc as a company," Tellock added.

Looking ahead to fiscal 2013, Manitowoc lowered its crane revenue growth guidance to high single-digit percentage from the prior outlook of 10 to 15 percent, while maintaining its foodservice revenue growth forecast in the mid-single digit percentage. Street is looking for full-year 2013 revenues of $4.19 billion.

MTW closed Monday's regular trading session at $19.12, up $0.01 or 0.05% on a volume of 2.42 million shares. The stock gained a further $0.58 or 3.03% in after-hours trading.