MTW - Sector: Capital Goods - Industry: Constr. & Agric. Machinery

[BigSully1]

No, no bjc, I was just making comments, mostly regarding some tepid guidance on N. American sales and earnings on those in the general sector. Isn't TEX very similar to GEHL, only larger?

I realize that MTW is mostly in a different ballpark and yes, as of now I intend to hold through earnings. My position is small, I think at $46.46.

Cat's ER was just something I offered as a possible explanation (however illogical) on why MTW dropped after we bought.

Sorry bout the confusion.

[bjc]

MTW down a couple bucks after hours after the earnings, which brings it down to about even for the day, down $0.50 right now. 

But the earnings look great!  Guidance and everything..I think this is a false reaction downward and we should push to new highs if the market cooperates which it looks like it should.

Here's the PR.


Press Release   Source: The Manitowoc Company, Inc.

Global Crane Demand Drives Strong Third-Quarter Performance for Manitowoc
Wednesday October 31, 5:30 pm ET
- Third-quarter 2007 net sales top $1 billion, an increase of 29 percent from the third quarter of 2006
- Third-quarter 2007 diluted earnings from continuing operations before special items were a record $0.65 per share, an increase of 59 percent from the third quarter of 2006
- Strong long-term outlook supports manufacturing capacity expansion initiatives
- 2007 EPS guidance range raised to $2.45 - $2.50 excluding special items

MANITOWOC, Wis., Oct. 31 /PRNewswire-FirstCall/ -- The Manitowoc Company (NYSE: MTW - News) today reported its financial results for the quarter ended September 30, 2007, as continued strong global demand for the company's lifting solutions drove outstanding performance in sales, profitability, and earnings per share. For the quarter, net sales totaled $1.0 billion, an increase of 29 percent from the third quarter of 2006. Reported earnings per diluted share were $0.59 for the third quarter of 2007 compared to $0.40 for the third quarter of 2006.

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Earnings per diluted share in the third quarter of 2007 include a $0.06 per share charge for costs related to the redemption of the company's Senior Subordinated Notes due 2012. Reported results for the third quarter of 2006 included $0.01 per share in nonrecurring charges related to the termination of a proposed acquisition. Reported earnings per diluted share for the nine months ended September 30, 2007 were $1.87, which is up 93 percent over the same period in 2006. Per share amounts for both periods reflect the two-for-one stock split on September 10, 2007. A reconciliation of GAAP earnings to earnings from continuing operations for the three months and nine months ended September 30, 2007 and 2006 is included later in this release.

"Strong global demand for lifting equipment continues to support the company's outstanding performance, and we believe that the fundamental drivers of this demand will remain intact for an extended period," said Glen E. Tellock, Manitowoc's president and chief executive officer. "The traditional lifting markets of North America and Western Europe continue to perform as expected in this current cycle. It is the strength and depth of demand in the emerging markets that gives us the confidence to make meaningful additions to our crane production capacity on a global basis. Customer feedback, coupled with our own market research, shows that the demand for lift solutions in emerging markets will continue to outpace current industry production capacity for several years."

Reflecting this long-term outlook, Manitowoc Crane Group has recently launched several production capacity expansion initiatives:

    -- A 57,000-square foot expansion of the company's crawler crane
       manufacturing facility in Manitowoc, WI;
    -- Expansion and process enhancements at the company's Port Washington, WI
       specialty machining facility to enhance crawler crane capacity;
    -- Entrance into the India market with the acquisition of Shirke
       Construction Equipment, a long-time Potain tower crane supplier; and
    -- Better access to the Eastern European markets through development of a
       manufacturing facility in Slovakia.


"In addition to strong Crane performance, our other business segments are also performing well. Manitowoc Foodservice Group continues to generate solid profit contributions, even though results for the current quarter reflect softer demand in the ice machine market," Tellock said. "Our Marine segment continues to show improved long-term performance trends. Results for the third quarter reflect strong commercial construction activity and the benefit of process improvements previously initiated in the Marine Group."

Business Segment Results

Third-quarter 2007 net sales in the Crane segment increased 39 percent to $812.3 million, the group's 26th consecutive quarter of improved year-over-year results. Operating earnings for the third quarter of 2007 increased 48 percent to $112.3 million, from $76.1 million in the same period last year. Backlog totaled $2.7 billion at September 30, 2007, an increase of 28 percent from June 30, 2007 and nearly double the level achieved at September 30, 2006.

"Demand for our full line of lifting solutions continues to be strong in all regions and for nearly all product lines," said Tellock. "Our view of the industry is that demand will remain strong through the end of the decade, with the potential for additional infrastructure and industrial projects in emerging markets to push that window of demand out even farther. Maintaining our global leadership position during this time of robust demand will remain an important strategic objective. Our investments in global capacity expansion are aimed at enhancing our ability to deliver and support high-quality products around the world in a timeframe that meets customer requirements."

In the Foodservice segment, third-quarter 2007 net sales decreased 1 percent to $112.9 million from $114.5 million in the third quarter of 2006. Operating earnings for the third quarter of 2007 were $17.9 million, a decrease of nearly 4 percent from the same period in 2006.

"The performance of the Foodservice segment this quarter reflects the impact of cooler weather in several of our larger markets compared to the prior year, which reduced the replacement demand for our ice machine products. In addition, lower capital spending by many of the major chains during the quarter further dampened our performance," Tellock said. "The ice business results were partially offset by continued improvements in our beverage and refrigeration businesses. Our beverage business is benefiting from new product introductions such as the Flex-Tower, even though a major national refresh program that was anticipated to begin in the second half of 2007 has been delayed until 2008. Additionally, manufacturing efficiency gains within our refrigeration division continue to improve its operating performance."

Revenue for the Marine segment during the third quarter of 2007 was $81 million, equaling the prior year's level; however, operating earnings grew significantly to $6.4 million in the third quarter of 2007 compared to $2.4 million in the third quarter of 2006. The improved operating margin was driven primarily by increased profit contributions from the company's backlog of commercial projects.

"The bulk of the Marine segment's improved profitability was driven by outstanding performance at Bay Shipbuilding, which is benefiting from process manufacturing efficiencies on repeat commercial projects. The Marine segment recently added to its strong commercial backlog with the signing of a tank barge/tug project for a new customer," Tellock said. "Manitowoc Marine Group is able to attract new business from existing customers and to attract new customers because of its reputation for outstanding quality and project management. These attributes were recently displayed when the US Navy conducted an extensive inspection of the Littoral Combat Ship FREEDOM. Although the future of the LCS program continues to evolve, the Navy's view of our shipbuilding abilities at Marinette Marine is extremely positive. We will continue to work with the Navy to serve as its partner on this and other important military programs."

Strategic Priorities

"The Manitowoc Company's solid performance is a tribute to our adherence to a set of strategic priorities," Tellock said. "Many companies embrace strategic planning during lean times, and then shift their focus to immediate opportunities during the inevitable upswing. Our role as managers is to maintain a long-term focus on these priorities throughout all phases of the business cycle and make the needed investments in capital and resources to ensure our success. We need only look to the current state of our Crane business to see the validation of this strategy."

Growth: Today, our greatest growth opportunities lie in capturing incremental sales from our current crane customers, and in exploring opportunities to grow our Foodservice segment through acquisitions and internal initiatives. We're investing in people, production capacity, and support infrastructure to meet these goals, which should drive continued strong performance in 2008.

Innovate: Our businesses rely on a "voice of the customer" approach to identify end-user needs. This approach is a vital element in our product development efforts which will result in our Crane and Foodservice segments introducing nearly 50 new products this year.

Customer Focus: One of the objectives of our capacity expansion efforts in the Crane segment is to be able to meet the delivery times that customers require. We've observed a compression in the crane purchasing decision cycle, with much less time available for manufacturers to bid, build, and deliver equipment. Our enhanced production capabilities should help keep Manitowoc Crane Group the favored choice for complex, global construction projects.

Excellence in Operations: The Marine segment has accomplished a tremendous turnaround in the past 18 months. By re-engineering many of its business and manufacturing processes, such as man-hour scheduling, supply chain logistics, and fully utilizing one of the nation's most experienced team of shipbuilders, our Marine segment has strengthened its reputation as a leading shipbuilder.

People and Organizational Development: Our employees are our most valuable resource. Internal training programs enable us to identify and train our next generation of supervisors and managers, while external relationships with colleges and trade schools enable us to recruit great people for our growing organization. These initiatives not only help to define our corporate culture, but are also a key component of our global growth strategies.

Aftermarket Support: We define world-class aftermarket support as a service offering that combines training, parts availability, real-time technical expertise, and on-the-ground partnerships to create a true competitive advantage for the Manitowoc customer. Our Crane and Foodservice segments fully embrace this strategy and are working to expand it globally.

Create Value: For the seventh consecutive quarter, all three business segments were positive EVA contributors, and through the nine months of 2007, EVA totaled nearly $150 million.

Earnings Guidance

"We are increasing our 2007 earnings guidance to $2.45 to $2.50 per share, excluding special items ($2.40 to $2.45 per share on a GAAP basis)," said Tellock. "Other financial expectations for 2007 include cash flow from operations at $300 million for the full year; capital expenditures of approximately $80 million; and a tax rate in the 27 to 28 percent range. Looking ahead, we expect to announce our preliminary guidance for 2008 prior to year-end."

[BigSully1]

Here's another one you might be interested in bjc. i don't feel like starting a new thread on it right now. I love these US companies with big exposure to global and emerging countries. Keeps me from getting overly exposed to actual foreign companies.

FLS - Flowserve Corp. just had another great ER, check it out.

[bjc]

I was just looking earlier to see if I ever started a thread on FLS!  I bought a little bit over a month ago at 75.  I was becoming impatient and almost sold yesterday to buy YHOO.  Thank goodness I didn't..

Are you long FLS?  It's one of my smallest holdings, i sold half a couple weeks ago.  But the EPS and revenue trends are fabulous and the stock should probably have a higher multiple.  I think it should be in triple digits in no time..   Has it been on the IBD 100 anytime lately?  It seems like a stock IBD would tout because of the strong momentum they have in earnings.  I figure they make $5 in the next 4 quarters, and The stock deserves a multiple of at least 20.  Probably 25.  So $125 target..

Karen Finerman talks about the stock often on Fast Money, she'll get some well deserved props tonight.  That's where I learned about the stock..

[BigSully1]

Yes, I have it. It was #2 or #3 on the IBD. I'll have to check again. Might be #1 after today.

[bjc]

I might add a little FLS if we get a pullback to the low 80s.  That would look good technically for a nice run higher..

[BigSully1]

Whoops. I blundered on the IBD llisting. It's not on the list all all (yet).

FTK - Flotek was #2 on the list. Earnings on FTK came out yesterday and took huge dive. Rebounding a little today. Maybe FLS will take FTK's place.

[bjc]

MTW has finally broken its downtrend.  It seems we were a bit early, Sully, but I think we'll both be fine.  Unless the global growth story is finished, which I don't believe to be the case by a long shot, then MTW should be just fine!

I'll continue to believe the stock is worth more like $75 until the fundamentals change.

[bjc]

I'm a little bit surprised MTW isn't busting through the 50 ma on one of these bullish, bullish days all across wall street.  The stock was great coming off the 200 ma but isn't raging through the 50 ma like I suspected it might.

I'll plan on continuing to hold, but if it starts going bearish again I may just take a 10% or so loss.  I definitely want it staying above the 20 ema.

I've read concerns that say MTW has such a low valuation based on its growth due its cyclical nature.  But almost everything I've read indicates crane demand will be strong well into the early 2010s.  Keep and eye on MTW, I wouldn't be surprised to see a +3 or +4 one day here and get it right within striking distance of all time highs.

[BigSully1]

4:55PM Manitowoc raises FY07 EPS above consensus; guides FY08 EPS above consensus (MTW) 43.55 -2.53 : Co raises FY07 EPS to $2.55-2.60 vs $2.50 First Call consensus, up from $2.45-2.50. Co issues upside guidance; co sees FY08 EPS of $3.20-3.40, excluding items, vs $3.10 First Call consensus. Co also gives segment revs data: Co expects that recent Crane segment capacity expansion projects in North America, Europe, and Asia will support 2008 revenue growth in excess of 20% from 2007 levels. Foodservice sales are expected to increase at a percentage rate in the mid-single digits, in spite of industry estimates for slowing sales growth. Revenue from the Marine segment is expected to be flat from 2007 levels as commercial projects and other government contracts replace the high level of production that was required in 2007 to prepare the Littoral Combat Ship for its delivery in the first half of 2008. Sales estimates for all segments exclude the impact of any potential acquisitions.

[bjc]

That ER looks great.  I sold at 44.90 ah two days ago.  I just wanted to reduce my exposure and build a cash position for an occurrence like this.  I sold a bunch of good stocks..MTW should continue to perform well by my estimation.  Looks like it got back all the losses from today, trading a bunch of shares after hours at 46.  If the market performs tomorrow I think it could make a new 52 week high.

[bjc]

Nice move for MTW today.  All time high..wish I had held on.  Hope it hits my target of $75 for you Sully. 

[BigSully1]

The Manitowoc Company Reports Record Sales and Earnings for Fourth-Quarter and Full Year 2007
Monday February 4, 5:28 pm ET 
- Fourth-quarter 2007 net sales exceed $1.1 billion, an increase of 44 percent from the fourth quarter of 2006
- Fourth-quarter 2007 diluted earnings from continuing operations totaled $0.74 per share, an increase of 111 percent from the fourth quarter of 2006
- Full-year 2007 net sales exceed $4 billion, an increase of 37 percent from 2006
- Full-year earnings per share from continuing operations of $2.68 before special items, an increase of more than 90 percent from 2006 adjusted EPS
- EVA totaled $207 million, an increase of 77 percent from 2006


MANITOWOC, Wis., Feb. 4 /PRNewswire-FirstCall/ -- The Manitowoc Company (NYSE: MTW - News) today reported its financial results for the quarter ended December 31, 2007. For the quarter, the company again set records for net sales and earnings per share as robust global construction activity continues to drive demand for the company's lifting solutions. Net sales for the quarter totaled $1.1 billion, an increase of 44 percent from the fourth quarter of 2006. Reported net earnings per diluted share were $0.76 for the fourth quarter of 2007, more than double the $0.35 for the fourth quarter of 2006.
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Earnings per diluted share in the fourth quarter of 2007 include a $0.02 per share benefit from positive trends in liabilities recorded related to the sale of the company's Manlift business in 2004. There were no special items recorded during the fourth quarter of 2006.

Reported earnings per diluted share for the 12 months ended December 31, 2007 were $2.64, which represents an increase of 100 percent over the 12 months of 2006. Earnings per share from continuing operations before special items for 2007 were $2.68, up 90 percent from 2006. Earnings per share from continuing operations including special items for 2007 were $2.62, up 97 percent from 2006. Per share amounts for all periods reflect the two-for-one stock split on September 10, 2007. A reconciliation of GAAP earnings to earnings from continuing operations before special items for the three months and 12 months ended December 31, 2007 and 2006 is included later in this release.

"The Manitowoc Company's exceptional performance in 2007 is an impressive achievement for which every one of our employees can take credit," said Glen E. Tellock, Manitowoc's president and chief executive officer. "Led by our Crane segment and supported by strong contributions from our Foodservice and Marine segments, our company's focus on delivering world-class products with superior quality and unrivaled after-market support has been the key to our results. In 2008, we will continue to make significant investments to ensure

that we have the capacity, technology, and people to continue to perform at these levels.

"Manitowoc Crane Group continues to serve as our primary growth driver," Tellock said. "Our global network of manufacturing and service facilities allows us to be a preferred lifting equipment provider in both established and emerging markets. Much of our planned 2008 capital expenditures will enable Manitowoc to meet the continued strong demand and provide delivery schedules that our customers require. That combination of global reach and responsiveness has been a key factor in our recent performance, and we will make the necessary investments to maintain our leadership position.

"Our Foodservice and Marine segments also were strong performers, generating increased operating profits for both the fourth quarter and the full year," Tellock said. "The Foodservice segment's new-product pipeline has helped drive improved top-line performance and increased operating leverage. Our Marine segment completed an outstanding quarter and full year due primarily to improved manufacturing efficiencies and strong repair activity."

Business Segment Results

Fourth-quarter 2007 net sales in the Crane segment increased 56 percent to $945.5 million. Operating earnings for the fourth quarter of 2007 increased 83 percent to $141.7 million, from $77.6 million in the same period last year. Backlog totaled $2.9 billion at December 31, 2007, an increase of 8 percent from September 30, 2007 and up 88 percent from the level achieved at December 31, 2006.

"As shown by our growth in sales and backlog, demand for our full line of lifting solutions continues to be strong on a global basis," said Tellock. "Demand in emerging markets is especially strong, and our new manufacturing facilities in India and Slovakia have begun production to help meet this demand. Our discussions with customers coupled with independent market research all indicate that demand for lift solutions will continue to be strong at least through the end of the decade. Demand for civil infrastructure, new energy and petrochemical capacity, and urban development all point to strong longer-term demand for our line of crawler, tower, and mobile hydraulic cranes. Our minimal exposure to the U.S. housing market reinforces our belief that we have ample opportunity for continued growth."

In the Foodservice segment, fourth-quarter 2007 net sales increased 7 percent to $100.4 million from $94.0 million in the fourth quarter of 2006. Operating earnings for the fourth quarter of 2007 were $10.2 million, an increase of 11 percent from the same period in 2006.

"The improved performance in our Foodservice segment reflects a strong focus on maintaining operating leverage in an industry that is experiencing pressures on capital spending," Tellock said. "All three of our Foodservice product lines focused on their competitive strengths to grow revenue and increase margins. Our ice business uses the industry's most advanced designs to provide customers with higher levels of energy savings than any competitor. Our beverage business is following the success of the Flex-Tower with the FlavorPic, a multi-flavor beverage/ice dispenser that is specifically tailored for convenience stores. Our refrigeration business is implementing the last stages of our enterprise resource planning (ERP) system, which should enhance that unit's ability to leverage additional cross-selling opportunities and operating synergies."

Revenue for the Marine segment during the fourth quarter of 2007 was $72.3 million, a decrease of 6 percent from the 2006 quarter. Operating earnings rose 68 percent to $5.7 million from $3.4 million in the fourth quarter of 2006. The improved operating margin stemmed from increased contributions on government and commercial projects as well as an early start to this year's winter repair season.

"The bulk of the Marine segment's improved profitability was driven by outstanding performance on our backlog of commercial projects, particularly the OPA-90 barges. The repeat nature of these projects has created significant operating efficiencies. During the quarter, we delivered our 16th tank barge, and the delivery was well ahead of schedule," Tellock said. "Our backlog of government projects remains solid as well, with work on the Navy's Improved Naval Lighterage System ramping up to offset the delivery of the Littoral Combat Ship FREEDOM later this year. The Navy continues to indicate that the LCS program is an integral factor in its long-range plans and that it is very pleased with the performance of Manitowoc Marine."

Strategic Imperatives

"Much of our success in 2007 can be traced to our strategic priorities," Tellock said. "They keep us focused on value-added activities and motivate us to look for new ways to improve. Our current position is enviable, but our long history has shown that markets change. By adhering to these principles, we can put our company in the best position to succeed both today and tomorrow."

Growth: Our capacity expansion initiatives in the Crane segment are aimed at capturing near-term growth opportunities while minimizing unnecessary costs. We also intend to grow the Crane and Foodservice segments by introducing new products and entering new geographic markets. These growth initiatives will be accomplished both organically and through strategic acquisitions that meet our investment criteria.

Innovate: We have a strong track record of innovation, and our recent launches of the GTK1100 crane and FlavorPic beverage unit are examples that we will continue to use innovation as a competitive advantage. These innovations not only keep our product lines fresh for current customers, but allow the company to enter new markets and geographies. In 2008, we plan to introduce 50 new products worldwide.

Customer Focus: Regardless of which product we provide, our customers all want exceptional value. We deliver that value by partnering with best-in-class suppliers and constantly driving new designs developed from a "voice of the customer" approach that provide greater efficiency and more competitive costs.

Excellence in Operations: Whether it is investments in capacity, equipment, or technology, our initiatives are focused on enhancing operational excellence. In 2008 this will include ERP deployments as well as several capacity expansions. These projects, coupled with ongoing Lean, Six Sigma, and Voice of the Customer initiatives, are all targeted at boosting our productivity, efficiency, and quality.

People and Organizational Development: We support our aggressive growth plans with programs that ensure we have the people and knowledge to continue to grow as a company. Throughout the organization we have implemented formal programs to provide technical and management training, succession planning, and sharing of best practices. Less formal, but no less important, are our everyday efforts to communicate the benefits of being part of the Manitowoc team and our efforts at keeping all employees engaged in meeting our goals.

Aftermarket Support: Crane CARE sets the standard for world-class support in the lifting industry, and our Foodservice and Marine segments are using that same model to create an additional competitive advantage.

Create Value: For the eighth consecutive quarter, all three business segments were positive EVA contributors. For the full-year of 2007, EVA increased more than 77 percent from 2006, well in excess of the 50 percent increase that we had forecast. For 2008, we are again targeting a 50 percent increase in EVA as well as cash flow from operations in excess of $400 million.

2008 Guidance

"We are affirming the current earnings guidance for 2008 earnings per share, excluding any unusual items, of being in a range of $3.20 to $3.40," said Tellock. "This guidance was issued late in the fourth quarter and represents an increase of between 19 percent and 27 percent from our outstanding 2007 results. In addition, given the continued strong outlook in the Crane segment, we are increasing our 2008 capex guidance to approximately $120 million."

[setravis]

Manitowoc Shares Popped: What You Need to Know...

What: Shares of crane-maker Manitowoc (NYSE: MTW) skyrocketed a whopping 20% in intraday trading Tuesday after the company's quarterly results easily topped Wall Street expectations.

So what: Excluding special items, Manitowoc posted fourth-quarter adjusted earnings of $15 million, or $0.11 per share, versus the average analyst estimate of just $0.04 per share. The embattled Manitowoc has struggled massively to pay down its big debt load during the downturn, but today's results seem to be giving investors plenty of hope that the worst is finally behind it.

Now what: I'd wait for a pullback before jumping into Manitowoc. With today's 20% surge, the shares have now more than doubled from the 52-week lows set this past summer and trade at a 25-ish forward P/E. While management believes that the crane segment will post impressive double-digit sales growth in 2011, Mr. Market already seems to be discounting much of that improvement.

[setravis]

Manitowoc, Silicon Motion Technology: Biggest Price Gainers (MTW, SIMO) .
Manitowoc Surges on Upbeat Results



Technicals
Record Price High
Close Above the 13-day EMA
Close Above the 50-day EMA
Most Actives
Record Price Break Out
Gap Up
Percentage Gainer
Price Gainer

Last Price Quote is:
27.03%above 13-day EMA
32.92%above 50-day EMA
RS Rating: 94 

Also the Golden Cross has taken place...
Moved very well off the Double Bottom (reversal) pattern put in.