Manitowoc Company, Inc.
) reported first-quarter 2013 adjusted earnings from continuing
operations of 9 cents per share, compared with the break-even
results in the prior-year quarter. The results missed the Zacks
Consensus Estimate of 14 cents.
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On a reported basis, earnings from continuing operations were 8
cents a share compared with the year-ago quarter's break-even
Total revenues were $898 million in the reported quarter, up 5.4%
year over year, led by an increase in the crane segment sales.
However, the revenues fell short of the Zacks Consensus Estimate
of $921 million.
Cost of sales increased 4.5% to $678 million in the first quarter
from $648.6 million in the year-ago quarter. Gross profit
improved 8.2% year over year to $220 million. Consequently, gross
margin expanded 60 basis points (bps) to 24.5% in the quarter.
Engineering, selling and administrative expenses went up 7.6%
year over year to $158 million. Operating income excluding
restructuring charges was 52.5 million in the reported quarter.
Revenues in the Crane and related products segment increased 7.8%
year over year to $547.4 million in the reported quarter, driven
by continued growth in the American region, as well as higher
demand in emerging markets. This rise was partly offset by
weakening European economy. The segment's operating income rose
46% year over year to $31.3 million in the quarter.
Foodservice Equipment segment revenues were $350.6 million in the
quarter compared with $344 million in the prior-year quarter. The
improvement was mainly due to sales of new products and growth
across all geographies. The segment's operating income dropped
3.7% year over year to $49.1 million in the first quarter.
Backlog in the Crane segment was $776 million as of Mar 31, 2013,
versus $756 million as of Dec 31, 2012. Total orders were $569
million for the first quarter, 16% lower than the prior-year
As of Mar 31, 2013, cash and temporary investments amounted to
$104 million versus $76.1 million as of Dec 31, 2012. Long-term
debt was $1.87 billion as of Mar 31, 2013, compared with $1.73
billion as of Dec 31, 2012. Debt-to-capitalization ratio inched
up to 76% as of Mar 31, 2013, from 75% as of Dec 31, 2012.
Cash flow from operating activities was $106 million in the
quarter versus $130 million in the prior-year quarter. Capital
expenditure was $21.2 million in the quarter compared with $14.2
million in the year-ago quarter.
For full-year 2013, Manitowoc maintains its forecast for crane
revenues to grow in a high single-digit, while foodservice
revenues are revised to grow in mid single-digits from the
previous guidance of low single-digits. The company retains a
high single-digit improvement in operating margins in the crane
segment and mid-teens gains in the foodservice segment.
Capital expenditure projection also remains at $100 million for
the year. The company also reaffirmed the outlook for
depreciation and amortization, which will be $115 million for
2013. Interest expenses are expected to be $125 million while
debt reduction has been targeted to exceed $200 million.
Crane demand is expected to increase by a significant margin,
aided by the new highway bill and a turnaround in the
construction sector. Margins in both the Crane and Foodservice
segments are expected to improve in fiscal 2013. However, high
debt levels and slowdown in the crane segment's order rate will
be headwinds, moving ahead.
Manitowoc, WI-based Manitowoc is one of the world's leading
innovators and manufacturers of commercial foodservice equipment.
The company is one of the premier innovators and providers of
crawler cranes, tower cranes, and mobile cranes for the heavy
construction industry, which are complemented by a slate of
industry-leading product support services. Manitowoc currently
retains a short-term Zacks Rank #3 (Hold).
Among Manitowoc's peers,
Astec Industries, Inc.
) reported first quarter earnings of 57 cents, up 10% from 52
cents earned in the year-ago quarter and was ahead of the Zacks
Consensus Estimate of 53 cents.
) posted adjusted earnings of 23 cents, declined 21% from 29
cents earned in the year-ago quarter, missing the Zacks Consensus
Estimate of 28 cents. On the other hand,
) earnings dropped 45% to $1.31 per share, and trailed the Zacks
Consensus Estimate of $1.34.