“While we experienced positive growth in several Foodservice categories as well as select emerging markets during the third quarter, we did see ongoing softness in Europe given the economic pressures prevalent in that region. However, our continued margin expansion within Foodservice is a testament to our ability to improve operational efficiencies and diligently manage our cost structure. While a challenging environment persists across the globe, we are well positioned for the long-term as we leverage growth opportunities from new and existing products in Foodservice,” Tellock concluded.
Cash flow from operating activities in the third quarter of 2012 was $50.9 million, compared to $5.0 million in the third quarter of 2011. The increase was primarily generated by cash from profitability and reduced working capital needs. The company decreased total debt in the third quarter of 2012 by $39.2 million.
Based on year-to-date results and its outlook for the fourth quarter, the company is narrowing its Crane and Foodservice revenue guidance and is tightening its debt reduction expectations, while reaffirming earnings guidance and all other key full-year financial metrics. As a result, Manitowoc now expects:
■ Crane revenue – 10 to 12% year-over-year percentage growth
■ Crane operating earnings – 30 to 40% year-over-year percentage increase
■ Foodservice revenue – low single-digit percentage growth
■ Foodservice operating earnings – 10 to 15% year-over-year percentage increase
■ Capital expenditures – approximately $80 million
■ Depreciation & amortization – approximately $120 million
■ Interest expense – Range of $125 to $130 million
■ Amortization of deferred financing fees – approximately $10 million
■ Debt reduction – target at least $150 million, which is expected to reduce total leverage by more than one turn
Investor Conference Call
On November 5 at 10:00 a.m. ET (9:00 a.m. CT), Manitowoc's senior management will discuss its third-quarter results during an investor conference call. All interested parties may listen to the live conference call via the Internet by going to the Investor Relations area of Manitowoc's Web site at
. A replay of the conference call will also be available at the same location on the Web site.
About The Manitowoc Company, Inc.
Founded in 1902, The Manitowoc Company, Inc. is a multi-industry, capital goods manufacturer with over 115 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, which are complemented by a slate of industry-leading product support services. In addition, Manitowoc is one of the world's leading innovators and manufacturers of commercial foodservice equipment, which includes 25 market-leading brands of hot- and cold-focused equipment. In 2011, Manitowoc’s revenues totaled $3.7 billion, with more than half of these revenues generated outside of the United States.