Manitowoc Co. Inc. (MTW), a maker of foodservice equipment and cranes, on Thursday reported a profit for the fourth quarter that more than doubled from last year on strong revenue growth in the crane segment. The results also benefited from the release of a reserve due to a favorable tax audit outcome.
Both revenue and adjusted earnings per share for the quarter beat analysts' estimates. Looking ahead, the company forecasts modest growth and continued margin expansion in fiscal 2013.
The Manitowoc, Wisconsin-based company's fourth-quarter net earnings was $34.5 million or $0.26 per share, up from $14.9 million or $0.11 per share in the previous-year quarter.
The latest quarter's results benefited from the release of a $11.6 million reserve as a result of a favorable tax audit outcome, which contributed to a full-year effective tax rate of 29 percent.
Excluding special items, adjusted earnings from continuing operations were $35.4 million or $0.27 per share, compared to $18.9 million or $0.14 per share in the year-ago period. On average, thirteen analysts polled by Thomson Reuters expected the company to earn $0.24 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter grew 10 percent to $1.13 billion from $1.03 billion in the prior year period and beat analysts' consensus revenue estimate of $1.09 billion.
The sales increase was primarily driven by a 12 percent increase in crane segment sales to $767.2 million. The higher sales reflected continued strong activity in the Americas region and higher demand in emerging markets.
Net sales in the foodservice segment rose 7 percent to $363.2 million, driven by balanced growth across all geographies, continued traction with new products, and engaged channel partners.
For fiscal 2012, Manitowoc's net income was $101.7 million or $0.76 per share, compared to net loss of $11.2 million or $0.08 per share in the previous year. Adjusted net earnings from continuing operations were $103.7 million or $0.78 per share, compared to earnings of $49.8 million or $0.37 per share in the prior year.
Net sales for the year increased 9 percent to $3.93 billion from $3.62 billion last year.
Analysts expected the company to earn $0.74 per share for the year on revenues of $3.91 billion.
Looking ahead to fiscal 2013, Manitowoc now expects crane revenue growth in the high single-digit percentage and foodservice revenue growth in mid single-digit percentage.
MTW closed Thursday's regular trading session at $17.60, up $0.24 or 1.38 percent on a volume of 2.84 million shares. In after-hours, the stock further gained $0.25 or 1.42 percent to $17.85.
by RTT Staff Writer
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