The company updates Cranes full-year 2015 outlook, while reaffirming
its Foodservice full-year 2015 outlook
MANITOWOC, Wis.--(BUSINESS WIRE)--Oct. 14, 2015--
The Manitowoc Company, Inc. (NYSE: MTW) today announced preliminary
third-quarter 2015 results, updated its Cranes full-year 2015 outlook,
and reaffirmed its Foodservice full-year 2015 outlook.
For the third quarter of 2015, net sales are expected to be
approximately $863 million versus $986.3 million in the third quarter of
2014.
On a GAAP basis, for the third quarter of 2015, the company expects to
report net earnings of approximately $5 million versus $73.1 million in
the third quarter of 2014.
“While we are seeing continued improvement in our Foodservice business,
our Cranes segment continued to be negatively impacted by a
deteriorating demand environment, particularly in the Middle East and
Asia. In addition, lower than anticipated tower and crawler crane
shipments exacerbated the shortfall in revenues for the third quarter,”
commented Glen E. Tellock, Manitowoc’s chairman and chief executive
officer. “We are taking a number of aggressive actions, including plant
rationalization and right-sizing the business, to offset this decline in
demand. Based on third-quarter results, we now expect Cranes full-year
2015 revenues to be down 15% to 20% compared to 2014 and operating
margins to be low single-digits for full-year 2015.”
Mr. Tellock continued, “On a more positive note, during the third
quarter, we saw further improvement in our Foodservice business directly
resulting from the corrective steps we took over the last year. The
encouraging trends we saw in June continued through the quarter with
operating margins returning to 2013 levels. As such, we are reaffirming
our guidance for Foodservice revenues to be approximately flat for
full-year 2015 when compared to 2014 and operating margins for 2015 to
be mid-teens percentage.”
The remainder of the company’s full-year 2015 outlook is as follows:
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Capital expenditures – approximately $70 million
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Depreciation & amortization – approximately $110 million
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Interest expense – approximately $90 million
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Amortization of deferred financing fees – approximately $4 million
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Total leverage – approximately 4.0x debt-to-EBITDA
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Effective tax rate on earnings, excluding one-time tax costs caused by
the spin-off – approximately 30 percent
About The Manitowoc Company, Inc.
Founded in 1902, The Manitowoc Company, Inc. is a multi-industry,
capital goods manufacturer with 92 manufacturing, distribution, and
service facilities in 25 countries. The company is recognized globally
as one of the premier innovators and providers of crawler cranes, tower
cranes, and mobile cranes for the heavy construction industry. Manitowoc
is also one of the world's leading innovators and manufacturers of
commercial foodservice equipment, which includes 24 market-leading
brands of hot- and cold-focused equipment. In addition, both segments
are complemented by a slate of industry-leading product support
services. In 2014, Manitowoc’s revenues totaled $3.9 billion, with
approximately half of these revenues generated outside of the United
States.
Forward-looking Statements
This press release includes "forward-looking statements" intended to
qualify for the safe harbor from liability under the Private Securities
Litigation Reform Act of 1995. Any statements contained in this press
release that are not historical facts are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. These statements are based on the current expectations of the
management of the company and are subject to uncertainty and changes in
circumstances. Forward-looking statements include, without limitation,
statements typically containing words such as "intends," "expects,"
"anticipates," "targets," "estimates," and words of similar import. By
their nature, forward-looking statements are not guarantees of future
performance or results and involve risks and uncertainties because they
relate to events and depend on circumstances that will occur in the
future. There are a number of factors that could cause actual results
and developments to differ materially from those expressed or implied by
such forward-looking statements. Factors that could cause actual results
and developments to differ materially include, among others:
-
unanticipated changes in revenues, margins, costs, and capital
expenditures;
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the ability to significantly improve profitability;
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the ability to direct resources to those areas that will deliver
the highest returns;
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uncertainties associated with new product introductions, the
successful development and market acceptance of new and innovative
products that drive growth;
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the ability to focus on the customer, new technologies, and
innovation;
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the ability to focus and capitalize on product quality and
reliability;
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the ability to increase operational efficiencies across each of
Manitowoc’s business segments and to capitalize on those efficiencies;
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the ability to capitalize on key strategic opportunities and the
ability to implement Manitowoc’s long-term initiatives;
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the ability to generate cash and manage working capital consistent
with Manitowoc’s stated goals;
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the ability to convert order and order activity into sales and the
timing of those sales;
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pressure of financing leverage;
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matters impacting the successful and timely implementation of ERP
systems;
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foreign currency fluctuations and their impact on reported results
and hedges in place with Manitowoc;
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changes in raw material and commodity prices;
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unexpected issues associated with the quality of materials and
components sourced from third parties and the resolution of those
issues;
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unexpected issues associated with the availability and viability of
suppliers;
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the risks associated with growth;
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geographic factors and political and economic conditions and risks;
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actions of competitors;
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changes in economic or industry conditions generally or in the
markets served by Manitowoc;
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unanticipated changes in customer demand, including changes in
global demand for high-capacity lifting equipment; changes in demand
for lifting equipment and foodservice equipment in emerging economies;
changes in capex spending by large foodservice chains, and changes in
demand for used lifting equipment and foodservice equipment;
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global expansion of customers;
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the replacement cycle of technologically obsolete cranes;
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the ability of Manitowoc's customers to receive financing;
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foodservice equipment replacement cycles in national accounts and
global chains, including unanticipated issues associated with
refresh/renovation plans by national restaurant accounts and global
chains;
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efficiencies and capacity utilization of facilities;
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issues relating to the ability to timely and effectively execute on
manufacturing strategies, including issues relating to new plant
start-ups, plant closings, and/or consolidations of existing
facilities and operations;
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issues related to workforce reductions and subsequent rehiring;
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work stoppages, labor negotiations, labor rates, and temporary
labor costs;
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government approval and funding of projects and the effect of
government-related issues or developments;
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the ability to complete and appropriately integrate restructurings,
consolidations, acquisitions, divestitures, strategic alliances, joint
ventures, and other strategic alternatives;
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realization of anticipated earnings enhancements, cost savings,
strategic options and other synergies, and the anticipated timing to
realize those savings, synergies, and options;
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unanticipated issues affecting the effective tax rate for the year;
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unanticipated changes in the capital and financial markets;
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risks related to actions of activist shareholders;
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changes in laws throughout the world;
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natural disasters disrupting commerce in one or more regions of the
world;
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risks associated with data security and technological systems and
protections;
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acts of terrorism; and
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risks and other factors cited in Manitowoc's filings with the
United States Securities and Exchange Commission.
Manitowoc undertakes no obligation to update or revise
forward-looking statements, whether as a result of new information,
future events, or otherwise. Forward-looking statements only speak as of
the date on which they are made. Information on the potential factors
that could affect the company's actual results of operations is included
in its filings with the Securities and Exchange Commission, including
but not limited to its Annual Report on Form 10-K for the fiscal year
ended December 31, 2014.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151014006656/en/
Source: The Manitowoc Company, Inc.
The Manitowoc Company, Inc.
Carl J. Laurino
Senior Vice
President & Chief Financial Officer
920-652-1720