Manitowoc Foodservice Business Up Slightly
May 8, 2013
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he Manitowoc Company's Foodservice Segment had first-quarter 2013 net sales of $350.6 million, up from $344.0 million in the first quarter of 2012. The increase came from sales of new products and growth across all geographies.

Foodservice 1Q 2013 operating earnings were $49.1 million, down 3.7%, compared to $51.0 million in 1Q 2012. Foodservice segment operating margin in 1Q 2013 was 14.0%, compared to an operating margin of 14.8% in 1Q 2012. The year-over-year drop in margin resulted from investments in manufacturing strategies, pension expenses, and product mix.

"The segment posted another quarter of sales growth driven by successes in various product categories, including our Convotherm ovens and Indigo ice machines, as well as the roll-out of our blended ice machine technology in Europe," said Glen E. Tellock, Manitowoc chairman and CEO. "While certain customers deferred their capital spending during the first quarter, we remain confident that our long-term initiatives should drive revenue growth and margin expansion within Foodservice, highlighted by our ongoing manufacturing and new product development strategies."

Manitowoc saw a 7.8% 1Q 2013 surge in sales within its second business segment, Cranes. Overall, Manitowoc had 1Q 2013 sales of $898.0 million, up 5.4% from $851.9 million in 1Q 2012. The sales increase was primarily driven by increased Crane segment sales.

Manitowoc expects full-year Foodservice revenue to show mid single-digit percentage growth. Foodservice operating margins are expected to continuing in the mid-teens percentages.

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