Manitowoc’s second quarter financial results were released as the financial markets closed yesterday.
Second-quarter 2014 net sales in the foodservice segment at Manitowoc were $406.7 million, up 4.4% from $389.7 million in the second quarter of 2013.
The increase was driven by a new product rollout in the Europe, Middle East and Africa (EMEA) region boosted by brisk sales of hot holding, ice, and beverage equipment in the Americas.
Foodservice operating earnings for the second quarter of 2014 were $65.9 million, up 4.6 percent versus $63.0 million for the second quarter of 2013.
This resulted in a foodservice segment operating margin of 16.2 percent for the second quarter of 2014, which matches the prior-year quarter.
The year-over-year increase in operating earnings was driven by operating efficiencies from key manufacturing strategies that were largely offset by an unfavourable product mix and a lag in the company’s Americas ovens consolidation.
“We successfully generated sales growth within our Foodservice segment driven by our ability to deliver innovative technologies, coupled with our ongoing focus on customers,” says Glen E. Tellock, Manitowoc’s chairman and chief executive officer.
“During the quarter, we completed the successful rollout of blended beverage equipment in EMEA and a hot holding rollout in the United States, while expanding the penetration and success of our KitchenCare aftermarket services offering.
“Despite flat operating margins, we made significant strides in realigning the business in such a way that we expect to deliver superior performance over the long-term,” Tellock says.
Based on year-to-date results, the company is lowering its guidance for Foodservice operating margins, as well as its full-year effective tax rate and amortization of deferred financing fees, while reaffirming all other key full-year financial metrics.
For the full-year 2014, Manitowoc now expects:
■ Foodservice revenue – mid single-digit percentage growth
■ Foodservice operating margins – mid-teens percentages
Overall Manitowoc reported sales of $1.013 billion for the second quarter of 2014, a decrease of 2.3% compared to sales of $1.037 billion in the second quarter of 2013.
During the quarter, the foodservice segment had a sales increase of 4.4%, which was offset by the 6.4 percent decrease in the company’s cranes business.