NEW YORK (TheStreet) -- Shares of Manitowoc (MTW - Get Report) were declining 9.45% to $4.31 on heavy trading volume late Thursday morning after issuing preliminary results for the 2016 third quarter.
The crane maker expects to report revenue of $350 million and a non-GAAP operating loss of $32 million. Analysts are looking for $348 million in total sales.
Orders and backlog fell double digits in the most recent period, and these trends have continued into the current quarter, CEO Barry Pennypacker said in a statement.
The company has consequently cut its production build schedules for mobile products. The company is also accelerating the relocation of its crawler production to Shady Grove, laying off employees, reducing non-employee costs and temporarily halting certain mobile production lines.
"While this will negatively affect gross profits for the balance of the year, we believe it will put us in a better position to manage cash flow in the current environment," Pennypacker noted.
Manitowoc will report full third-quarter results after the market close on November 1.
Additionally, Seaport Global lowered its rating on the stock to "neutral" from "buy," claiming that the pre-announcement indicates a more challenging crane cycle than anticipated, TheFly reports.
About 1.97 million shares of Manitowoc have been traded so far today vs. the company's average trading volume of roughly 1.26 million shares a day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.
Manitowoc's strengths such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures are countered by weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
You can view the full analysis from the report here: MTW
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.