Manufacturer of foodservice equipment, cranes and ships Manitowoc Co., Inc. (MTW) announced late Wednesday that it reported a loss for the fourth quarter, compared to profit last year, hurt mainly by currency hedging loss. This was partially offset by a gain on the sale of the marine segment. Adjusted earnings per share for the quarter declined and missed analysts' expectations by six cents. The company also reiterated its forecast for fiscal 2009.
Fourth Quarter Results
The Manitowoc, Wisconsin-based company posted a net loss of $36.5 million or $0.28 per share for the fourth quarter, compared to net earnings of $99.2 million or $0.76 per share in the prior-year quarter.
Loss from continuing operations for the quarter was $99.1 million or $0.76 per share, compared to earnings of $92.3 million or $0.71 per share in the year-ago quarter.
The results of the latest quarter included $117.7 million or $0.90 per share of currency hedging loss related to the company's acquisition of British restaurant-equipment maker Enodis Plc., and an after-tax gain of $62.8 million or $0.48 per share related to the sale of Marine segment. Further, it also included impacts of the Enodis acquisition, an early extinguishment of debt, and a restructuring charge taken in the Crane segment.
Excluding one-time special items, net earnings for the quarter declined to $66.5 million or $0.51 per share from $96.1 million or $0.74 per share in the comparable quarter a year ago.
On average, ten analysts polled by First Call/Thomson Financial expected the company to earn $0.57 per share for the fourth quarter. Analysts' estimate typically excludes special items.
Net sales for the quarter increased 16% to $1.22 billion from $1.05 billion in the same quarter last year. Nine Wall Street analysts had a consensus revenue estimate of $1.22 billion.
During the fourth quarter, the company completed the acquisition of Enodis and the divestiture of the marine segment.
Segmental Details
The company operates in two core segments, the cranes and commercial foodservice equipment. Earlier, the company sold its marine segment, effective December 2008, for about $120 million, which generated an after-tax gain of $62.8 million, or $0.48 per share.
Crane and related products sales edged down to $943.6 million from the year-ago quarter, while segment operating earnings fell to $114.9 million from $141.7 million last year. As of the end of the fourth quarter, crane segment backlog totaled $1.9 billion, down 34% from $2.9 billion at the end of the year-ago quarter. The company noted that demand for higher capacity cranes in the U.S. and Asia remains relatively stable, while demand in Europe and the Middle East has weakened considerably.
Sales of foodservice equipments soared 172% to $273.0 million from $100.45 million a year ago, although organic revenues of the segment declined 6.2%. Segment operating earnings were $3.2 million, down from $10.2 million in the same quarter last year, while adjusted operating earnings, excluding special items related to the acquisition of Enodis, rose to $13.4 million in the latest quarter.
Marine segment, which is accounted in discontinued operations, generated sales of $109.1 million.
Other Metrics
Operating earnings for the fourth quarter dropped to $71.5 million from $134.6 million in the same quarter last year, while gross profit was $242.2 million, up from $239.5 million in the prior-year quarter.
Engineering, selling and administrative expenses grew to $137.7 million from $101.9 million in the comparable quarter a year ago, while cost of sales was $974.4 million, up from $806.4 million in the year-ago quarter.
Fiscal 2008 Highlights
For the full-year 2008, the company reported net earnings of $174.0 million or $1.32 per share, down nearly 50% from $336.7 million or $2.64 per share posted in fiscal 2007.
Earnings from continuing operations for the year were $99.1 million or $0.60 per share, sharply lower than $314.8 million or $2.47 per share in the previous year.
Excluding special items, net earnings grew to $407.4 million or $3.10 per share from $341.1 million or $2.68 per share in the prior year. Analysts expected the company to report earnings of $3.13 per share for fiscal 2008.
Net sales for the full-year 2008 increased 22% to $4.50 billion from $3.68 billion reported in the full-year 2007. The Street was looking for full-year 2008 revenues of 4.70 billion.
Outlook
Manitowoc reiterated its fiscal 2009 earnings guidance in the range of $1.35 to $1.60 per share, before special items, based on anticipated revenues of about $3.2 billion for the Crane segment and about $1.7 billion in the Foodservice segment. Analysts expect full-year 2009 earnings of $1.39 per share on total revenues of $4.82 billion.
The guidance includes the full-year impact of the Enodis acquisition, excluding the Enodis ice operation.
The company also revealed that fiscal 2009 capital expenditures is anticipated to be about $120 million, depreciation and amortization to be about $135 million, with the company expecting to reduce debt by $1 billion post-funding of Enodis. Operating margins for both crane as well as foodservice segments are projected to be in the low double-digit range.
"Like most companies, we are feeling the impact of the global economic slowdown. We have taken appropriate actions and we will make additional changes to our businesses as market dynamics continue to unfold in 2009. We intend to build on our leadership positions during this slowdown and emerge as an even stronger competitor," Tellock added.
Stock Quote
MTW closed Wednesday's regular trading session at $6.84, up $0.38 or 5.88% on a volume of 3.34 million shares, lower than the three-month average volume of 4.25 million shares. In the past 52-week period, the stock has been trading in a broad range of $4.56 to $45.47.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.