The Manitowoc Company, Inc. (Manitowoc, WI, U.S.) said second quarter 2011 net sales in its Foodservice segment were $395.0 million, up 7.4% from $367.7 million in the second quarter of 2010. The increase was driven by development and introduction of new foodservice products and strengthening demand in some markets.
Foodservice operating earnings for the second quarter of 2011 were $62.2 million, up 12.9% versus $55.1 million in 2Q 2010, giving Foodservice an operating margin of 15.7% for 2Q 2011, up from 15.0% in 2Q 2010. The increase in margin was credited to a favorable product mix, new product rollouts, and improved operating efficiencies, but somewhat offset by customer mix and commodity cost pressure.
"During the quarter we completed the successful launch of our Indigo ice machine platform, along with introducing technological enhancements for our Merrychef ovens and blended beverage products," said Manitowoc Chairman and CEO Glen E. Tellock.
Tellock added, "Our conversations with new and existing customers not only reveal an increased level of confidence, but further validate our leading position in the marketplace."
For the first six months of 2011, Manitowoc's Foodservice segment net sales were $734.4 million, up from $685.3 million in the first half of 2010. Foodservice operating earnings in the first half of 2011 were $103.4 million, up from $101.7 million in 1H 2010.
Tellock said the focus in the Foodservice segment would be on increasing operational efficiency, with lean strategies implemented during the second half of 2011.
In addition to Foodservice, Manitowoc Company's other major product segment is cranes and other construction lifting equipment. Manitowoc Company overall reported sales of $949.8 million for the second quarter of 2011, up 15.9% from $819.3 million in 2Q 2010. The Cranes business segment showed a 22.9% increase in 2Q sales.
With 2Q results in-line with its expectations, Manitowoc reaffirmed its full-year guidance for 2011. For the full-year 2011, Manitowoc expects
• Foodservice revenue to show high single-digit percentage growth
• Foodservice margins to show mid-teen margins versus 2010
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