Manitowoc Foodservice Business Sales Up 11% Jul 30, 2010

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The Manitowoc Company said sales for its Foodservice equipment business segment in 2Q 2010 were up 11%, but that still wasn't enough to offset a 31% decline in crane segment sales, which brought total company sales down 12.4% for the quarter.

Manitowoc Foodservice produces a variety of commercial appliances and foodservice equipment under more than 20 global brand names.

Net sales in the Foodservice segment were $424.9 million in 2Q 2010 compared to $382.5 million in 2Q 2009. Manitowoc said the strong results come from a continued focus on innovation, the introduction of new products, and strengthening demand in certain end markets and geographies.

Foodservice operating earnings for the quarter were $56.9 million, versus $46.4 million in the second quarter of 2009. This resulted in Foodservice segment operating margins of 13.4% for 2Q 2010, up from 12.1% in the same period in 2009.

"In the second quarter, we experienced increasing demand in both North America and across our emerging markets, along with cost savings from our successful integration efforts," said Glen E. Tellock, Manitowoc chairman and CEO. "Our product offering and existing relationships, coupled with our global footprint, provide us with a unique opportunity to further penetrate international markets, which we expect to be a key driver of future revenue and earnings growth."

Manitowoc expects Foodservice segment revenues to improve modestly for full-year 2010 compared to 2009, and expects full-year Foodservice segment operating margins to exceed those of 2009.

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