Sales in its foodservice equipment business were essentially flat in the first quarter of 2010, but a sharp decline in The Manitowoc Company's crane business brought down overall company sales to $721.9 million in the first quarter of 2010. That amount is down 29.7% from $1.0 billion in the first quarter of 2009.
"As expected, we are beginning to see increasing benefits from the operational efficiency, process improvements, and cost reduction initiatives we implemented during 2009," said Glen E. Tellock, Manitowoc's chairman and chief executive officer.
Manitowoc acquired foodservice equipment giant Enodis in 2008. "We are realizing significant synergies from our Foodservice integration success," Tellock said. "We continue to expect Foodservice synergies to exceed $80 million once all integration activities are completed in 2011."
First-quarter 2010 net sales in the Foodservice segment were $355.1 million versus $354.7 million in the first quarter of 2009 and $358.5 million in the fourth quarter of 2009.
The company said difficult market conditions continued and 1Q 2010 results were driven by the introduction of new foodservice products, as well as replacement demand.
Foodservice operating earnings for the first quarter of 2010 were $47.5 million, versus $27.5 million in the first quarter of 2009, and $41.5 million in the fourth quarter of 2009. This resulted in Foodservice segment operating margins of 13.4% for the first quarter of 2010, up from 7.8% in the same period in 2009, and 11.6% in the fourth quarter of 2009.
"We continue to see significant potential for organic growth in all areas of our Foodservice business and have witnessed an increasing number of positive signs in our end markets, including same-store sales increases, as well as traffic and revenue improvements," said Tellock
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