Manitowoc Foodservice Business Up 9.2% Third Quarter
Nov 16, 2010
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Commercial foodservice equipment OEM The Manitowoc Company, Inc. reported sales of $877.8 million for the third quarter of 2010, down slightly from $881.5 million in the third quarter of 2009. The sales decrease was due primarily to an 8.5% decline in one of its non commercial appliance business segments, the Crane segment. The Crane decline was offset in part by a 9.2% increase in Foodservice segment sales.
Third-quarter 2010 net sales in the Foodservice segment were $439.0 million versus $402.0 million in the third quarter of 2009 and $424.9 million in the second quarter of 2010. Similar to recent quarters, third-quarter 2010 results were driven by the introduction of new products and strengthening demand in certain end markets and geographies.
Foodservice operating earnings for the third quarter of 2010 were $64.0 million, versus $58.9 million in the third quarter of 2009. This resulted in Foodservice segment operating margins of 14.6% for the third quarter of 2010, up from 13.4% sequentially, and consistent with the same period in 2009. The sequential margin improvement was due to better demand for replacement products and new product rollouts, while the year-over-year comparison was negatively impacted by material cost increases and ramp-up costs from a new product launch.
"Third-quarter results in our Foodservice segment showed continued momentum, with increasing demand in the Americas and across emerging markets,” said Glen E. Tellock, Manitowoc chairman and CEO. “Foodservice operating margins remained steady as we saw further realization of operational efficiencies and cost savings from our integration efforts, despite inefficiencies in our retail refrigeration business during the quarter.”
Manitowoc reiterated its previous full-year guidance in regards to Foodservice:
• Foodservice segment revenues to improve modestly over 2009 results.
• Full-year Foodservice segment operating margins should exceed those of 2009.
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