Manitowoc Shares Rally 12% After Company Swings To Adjusted Profit

Shares of Manitowoc Co. rose more than 12% late Monday after the maker of cranes for construction, oil and gas, and other industries swung to an adjusted quarterly profit and reported sales above forecasts. Manitowoc said it earned $500,000 in the quarter, breaking even on a per-share basis, versus a loss of $5.8 million, or 4 cents a share, a year ago. Adjusted for one-time items, Manitowoc said it earned 5 cents a share, compared with 3 cents a share a year ago. Net sales reached $394.6 million, compared with $457.7 million in the second quarter of 2016. Analysts polled by FactSet had expected an adjusted loss of 4 cents a share on sales of $396 million. Most of the decline in sales was thanks to lower crawler crane shipments in the Americas as the company had shipped a "significant volume" of these cranes in the prior year, and lower rough-terrain crane shipments in the Americas and in the Middle East due to continued weakness in oil and gas market demand, the company said in a statement. The company has experienced "pockets of improved demand in specific markets like the Permian and Eagle Ford basins in North America," while European markets continue to experience moderate growth, partly offset by continued weakness in the Middle East, CEO Barry Pennypacker said. Manitowoc is "cautiously optimistic" for the near term, it said.