(RTTNews) - Manufacturer of foodservice equipment, cranes and ships Manitowoc Co., Inc. (MTW: News ) reported Thursday a loss for the third quarter as quarterly revenues dropped 20% on plummeting crane sales. However, the loss narrowed as a result of the company's cost cutting initiatives as well as operational improvements over the past year. The company also noted that its global restructuring is positioning the crane segment for next market upturn, while the foodservice segments integration is on track, and synergies are pacing ahead of schedule.

In a statement, chairman and chief executive officer, Glen Tellock said, "Despite lower sales and operating earnings, cash flow improved as a result of working-capital reductions, operational improvements, and cost reductions that we have implemented over the past year. Our cash flow from operations of $198 million during the third quarter enabled further progress toward our aggressive debt reduction goals. Thus far in 2009, we have reduced our debt by $262 million."

Third Quarter Results

The Manitowoc, Wisconsin-based company posted a net loss of $17.7 million, or $0.14 per share for the third quarter, narrower than $26.1 million, or $0.20 per share in the prior-year quarter. Loss from continuing operations for the quarter narrowed to $13.2 million or $0.10 per share, compared to a loss of $37.7 million or $0.29 per share in the year-ago quarter.

The results for the latest quarter primarily include $8.3 million or $0.06 per share of restructuring charges, while the year-ago quarter included $128.9 million or $0.99 per share of loss on currency hedges related to the company's acquisition of British restaurant-equipment maker Enodis Plc in October 2008.

Excluding unusual items, adjusted loss from continuing operations for the quarter was $4.9 million or $0.04 per share, compared to adjusted earnings of $92.7 million, or $0.71 per share in the year-ago quarter.
On average, fourteen analysts polled by Thomson Reuters expected the company to earn $0.08 per share for the third quarter. Analysts' estimate typically excludes special items.

Net sales for the quarter dropped 20% to $881.5 million from $1.11 billion in the same quarter last year, and missed analysts' consensus estimate of $934.36 million. The decline in sales was attributable to a 52% drop in crane sales, partially offset by the additional revenues related to the acquisition of Enodis.

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.

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