The Manitowoc Co. said preliminary Q3 2015 net sales will drop about 12.5 percent to approximately $863 million, compared to $986.3 million in 2014. Crane revenue is expected to be down 15 to 20 percent, the company said.
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,” said Glen E. Tellock, chairman/CEO.
“We are taking a number of aggressive actions, including plant rationalization and right-sizing the business, to offset this decline in demand,” he said. “Based on third-quarter results, we now expect Cranes full-year 2015 revenues to be down 15 percent to 20 percent compared to 2014, and operating margins to be low single-digits for full-year 2015.
“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:
- Capital expenditures – approximately $70 million
- Depreciation & amortization – approximately $110 million
- Interest expense – approximately $90 million
- Amortization of deferred financing fees – approximately $4 million
- Total leverage – approximately 4.0x debt-to-EBITDA
- Effective tax rate on earnings, excluding one-time tax costs caused by the spin-off – approximately 30 percent