Manitowoc Foodservice CEO Says Transition, Growth on Track

Manitowoc Foodservice was stung in the second quarter by softness in the restaurant industry. Nevertheless, the company's CEO says its transition is on track.
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Shares of Manitowoc Foodservice (MFS)  lost ground on Thursday following the release of its second quarter earnings report that missed Wall Street forecasts. The drop was not exactly pleasing to CEO Hubertus Muehlhaeuser, but then again, the company's shares have ripped over 25 percent higher since the company started trading independently in March. 'We had a very good start with two very strong quarters into the year,' said Muehlhaeuser. 'Our restructuring journey is fully on track so we are very pleased.' Manitowoc Foodservice on Thursday reported second-quarter adjusted earnings of $0.12 a share, short of Wall Street expectations of $0.16 a share. The food and beverage equipment maker posted revenue of $368.4 million in the period, which also missed Street forecasts of $379.1 million. Muehlhaeuser said 2016 marks a transition year for the company after it was spun-off from the crane-operator earlier this year. Despite the earnings miss relative to Wall Street expectations, he said the company is on track to meet its 2016 goals of delivering operational improvement initiatives, driving new products and deleveraging the balance sheet.