Cranes and foodservice-equipment maker Manitowoc (NYSE:MTW) edged lower on Wednesday after announcing worse-than-expected preliminary third-quarter earnings on weaker North American and Western European demand.
The Manitowoc, Wisconsin-based company said net sales are expected to be $880 million, missing average analyst estimates polled by Thomson Reuters of $908.27 million.
Manitowoc CEO Glen E. Tellock said that while demand has increased in emerging markets, particularly in Asia and Latin America, North American and Western European markets remain challenging, leading to lower results in its Crane segment.
But the company said is still believes the unit can reach its second-half revenue guidance, leading Manitowoc to reaffirm its full-year view.
“Our foodservice segment continues to deliver on our expectations, moderating the cyclicality of the crane segment,” Tellock said in a statement. “We remain confident that the initiatives we have implemented to drive operational efficiency, process improvements, and cost reductions will provide enhanced long-term profitability as demand strengthens.”
Meanwhile, the company said it obtained approval from senior lender for an amendment to its credit agreement involving the pay down of term debt from the issuance of at least $500 million unsecured senior notes.
Tellock said the deal provides the company with “increased flexibility” as it navigates current economic challenges.