Marketplace Today Blog

By Rick Barrett
Milwaukee Journal Sentinel

Shares of Manitowoc Co. tumbled nearly 12 percent Thursday, after the maker of construction and lifting equipment narrowed its 2008 profit estimate toward the low end of its previously announced guidance range.

Manitowoc also forecast a 20-percent reduction in revenue this year in its crane division, which accounted for more than 80 percent of the company's business in 2007.

A tripling in sales in the food-service equipment division, bolstered with the acquisition of Enodis Plc in the United Kingdom, will offset the reduction, Manitowoc said.

Manitowoc now expects adjusted 2008 earnings to be at the low end of its previous outlook of $3.15 to $3.25 per share. Analysts surveyed by Thomson Reuters expect, on average, earnings of $3.20, excluding one-time gains and charges.

A major part of the revenue decline is expected in the first quarter of 2009, Eric Etchart, senior vice president of the crane segment, said in a conference call with analysts.

Previous areas of strength, such as crawler-crane sales, have started to show weakness as the global economy has slowed.

It’s a faster-than-expected deterioration in the crane market, analyst Chip Miller of J.P. Morgan Securities says in a note to clients.

After the news, Manitowoc shares fell $1.11, or 11.7 percent, to close at $8.39.

In the past 52 weeks, the shares have ranged from $4.56 to $45.47.