Constrained demand hits Manitowoc

Manitowoc said that revenue in its preliminary third-quarter results was hit by falling demand that prompted an update to its full-year outlook.

For the third-quarter 2014, net sales are expected to be just under US$1 billion, versus $1.01 billion in the third quarter of 2013. Earnings before interest, restructuring, and tax are expected to be approximately $90 million in the third quarter of 2014 versus $112.4 million in the third quarter of 2013.

Glen Tellock, Manitowoc 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. 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.

“We have ongoing confidence in the strength and long-term outlook of our business, including the recently announced cost-savings expectations. While we continue to be faced with challenging and uncertain market dynamics, we are focusing on those areas within our control to drive long-term, profitable growth.”

For the full-year, the company anticipates crane segment revenue to decline by "mid-to-high single-digit" percentage compared to 2013 revenues, while it expects crane operating margins for full-year 2014 to be in the 7 % range.

In addition, the company is adjusting its guidance for end-of-year debt-to-EBITDA to approximately 3.5 times (versus below three times previously expected), and is reducing its interest expense guidance to a low-to-mid $90 million range.