Manitowoc Reports Third-Quarter Results

The Manitowoc Company, Inc. reported net sales of $422.3 million for the third quarter of 2003, increasing 7 percent from $394.9 million during the same period last year. The company also reported net earnings of $7.2 million, or $0.27 per diluted share, compared with net earnings of $14.7 million, or $0.57 per diluted share, in the third quarter of 2002. Excluding special charges totaling $2.2 million ($1.6 million net of tax), third-quarter earnings were $0.33 per diluted share. Special charges primarily included $1.2 million for restructuring charges related to rationalization and facility closures in the Crane segment and approximately $0.5 million in fees related to early debt payment. A reconciliation of earnings per share from reported GAAP amounts to non-GAAP amounts is included later in this release. Excluding the Grove acquisition, third-quarter sales declined 9 percent from last year. The significant downturn in the domestic crawler market continues to impact the company's legacy crane business. That decline was partially offset by modest improvement in the tower and mobile hydraulic crane markets in Europe and Asia. In Foodservice, revenues were basically flat versus prior year in a down market. Marine contract revenues for the quarter were also down due to project deferrals that occurred earlier in the year, but recent new project awards have positioned this segment for strong performance in 2004 and 2005. For the first nine months of 2003, net sales were $1.2 billion, increasing 23 percent from $1.0 billion reported for the same period last year. Excluding the acquisition of Grove, year-to-date sales declined 12 percent from the prior year. The company reported net earnings of $9.0 million, or $0.34 per diluted share, compared with $4.6 million, or $0.18 per diluted share, in 2002. Excluding special charges, earnings were $0.68 per diluted share in the first nine months of 2003 and $1.68 in 2002. A reconciliation of earnings per share from reported GAAP amounts to non-GAAP amounts is included later in this release. "Our Foodservice segment once again outperformed the industry despite soft market conditions while continuing to strengthen its internal operations. This helped to offset ongoing market weakness in our Crane segment and lower project activity in our Marine segment. In total, the strength of our diversified business model is helping us to weather these challenges," said Terry D. Growcock, Manitowoc's chairman and chief executive officer.