Overall, Manitowoc Company sales were down 20% year-on-year in the third quarter, from USD1,106.8m to USD881.5m. The company recorded a number of unusual items this year and in 2008, including a charge of USD647.1m after tax for goodwill impairment in its foodservice operations this year and USD128.9m for loss on currency hedges last year.
Excluding these unusual items, the company recorded a net loss from continuing operations of USD4.9m, against earnings of USD92.7m in the third quarter of 2008.
Including special items, Manitowoc reduced its losses to USD17.7m this year, from USD26.1m in the third quarter of 2008.
Crane sales this quarter were down 52% to USD479.5m, from USD991m last year. Crane sales were down 26% over the past three months, from USD652.3m in the second quarter of 2009.
While 2009’s crane backlogs have declined, from USD901m on June 30 to USD667m as of September 30, the company says it has seen net positive order flow since March, and expects this to continue into the first quarter of next year.
Tellock said: “While improvement in the US and European markets is not expected in the near-term, there are pockets of growth in Asia, Latin America, Africa and the Middle East. Going forward, Manitowoc should benefit from the global restructuring that we have been implementing over the past year, as well as our position in emerging markets that are leading the economic recovery.”
By selling its shipbuilding operations, the historic core of the company, and buying foodservice business Enodis, Manitowoc appeared to be seeking to reduce its exposure to cyclicality. While crane sales floundered as a result of the housing and construction-led global economic crisis, foodservice segment net sales increased to USD402m from USD115.8m year-on-year, and from USD382.5m three months ago.
Operating earnings in the foodservice segment reached USD58.9m from USD18.4m last year and USD46.4m last quarter. Operating margins in the segment were 14.7%, which the company described as a ‘significant increase’ from 12.1% in the second quarter.
So far this year, the company said it has made integration synergies of USD26m in the newly acquired business, and expects to increase this to as much as USD34m for the full year.
