Earnings Preview: Manitowoc Co.

| About: Manitowoc Company, (MTW)

Manitowoc Co. (NYSE:MTW) is expected to report Q4 earnings after market close Thursday, January 29, with a conference call scheduled for Friday, January 30 at 10:00 am.


Analysts are looking for EPS of 57c on revenue of $1.22B. The consensus range for EPS is 43c-65c, while the consensus range for revenue is $1.05B-$1.41B, according to First Call. Manitowoc lowered its FY08 EPS guidance to $3.15-$3.25 vs. consensus $3.44 when it reported its Q3 results. The company stated it lowered its guidance due to the impact of the credit crisis on the U.S. markets and the weakening Euro, along with factory absorption and product mix issues.

The company then stated in January it expects to report FY08 EPS at the low end of its guidance. The company also stated for FY09, it anticipates a revenue reduction of approximately 20% for its Crane segment, which will be offset by an approximate 200% revenue increase by its Foodservice segment. This is driven by the full-year impact of the Enodis acquisition. Operating margins for both segments are projected to be in the low double-digit percentage range. Other 2009 financial expectations include capital expenditures of approximately $120M; depreciation and amortization of approximately $135M; debt reduction of $1B post-funding of Enodis; an anticipated tax rate in the mid-20% range, and earnings of $1.35-$1.60 per diluted share before special items. Consensus for FY09 EPS is $1.39.

Analyst Views

Manitowoc was downgraded to Market Perform from Outperform at BMO Capital in early January. The firm downgraded the company following its reduced guidance.

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