Boston, MA 05/06/2014 (wallstreetpr) -Analysts and investors continue to react negatively on Manitowoc Company, Inc. (NYSE:MTW) having reported below par results for the first quarter of the year, that fell short of consensus estimates. Crane business slowed in the quarter greatly affecting revenue collection. The decline was partially offset by Middle East regions which continue to experience rapid growth.
The ailing Crane segment
Global macro-economic landscape continues to remain somehow pressurized considerably affecting business. Crane business was the one that was heavily hit in the quarter with net sales consequently dropping from a high of $544 million reported in the first quarter of 2013 to $466.7 million.
Drop in series in this case was as a result of lower level backlog at the start of the year as well as a delay in customer related projects. Sales from this segment were primarily driven by activity in the America’s region and the ongoing growth in Middle East.
Crane segment earnings for the quarter dropped to $22.6 million from $34.9 million as a result of lower sales volume that was offset by operational efficiencies. Manitowoc Company, Inc. (NYSE:MTW) is still confident that the segment will pick up in the coming quarters following the ConExpo exhibit where the company was met with tremendous success. The company is now focused on demonstrating the importance of innovations to its customers, as well as the greater construction industry.
Foodservice Segment Driving Growth
Foodservice segment continues to provide alternate growth metrics to the ailing crane segment seen by a 9.3% increase in sales for the quarter that came in at $383.3 million. Growth in this segment continues to be attributed to new products and ongoing growth in EMEA and Americas Regions. New products and benefits from ongoing investments in key manufacturing strategies enabled Manitowoc operating earnings for the quarter increase by 17.9% to $57.9 million.
Manitowoc Company, Inc. (NYSE:MTW) expects its crane revenue for the year to experience modest top line growth with crane operating margins enjoying high single digit percentage.
