The Manitowoc Co., Manitowoc, Wis., reported sales of $838.7 million for the fourth quarter of 2009, down 31.1 percent from $1,216.6 million in the fourth quarter of 2008. The sales decrease was due primarily to a 49.1 percent decline in its crane segment, partially offset by a 31.3 percent increase in the foodservice segment.

On a GAAP basis, the company reported a loss of $23.5 million, or $0.18 per diluted share, for the quarter, versus a net loss of $200.4 million, or $1.54 per share, in the fourth quarter of 2008. Both periods included special items. Excluding special items, the adjusted earnings from continuing operations was a loss of $9.3 million, or $0.07 per share, for the fourth quarter of 2009, versus similarly adjusted earnings of $59.4 million, or $0.46 per share, in the fourth quarter of 2008. A reconciliation of GAAP net earnings to net earnings before special items is provided later in this press release.

For the full-year 2009, sales were $3.8 billion, a 16.0 percent decline from $4.5 billion in 2008. The net loss for 2009 was $704.2 million or $5.41 per share, versus earnings of $10.0 million or $0.08 per share for the prior year. Excluding the special items described in the reconciliation below, net earnings from continuing operations for 2009 were $46.8 million or $0.36 per share versus $368.6 million or $2.80 per share for 2008.

“Although we continue to be faced with a challenging business environment, we are encouraged by recently improving metrics and trends for 2010,” said Glen Tellock, Manitowoc's chairman and CEO. “We clearly exceeded our adjusted targets for cash flow and debt reduction, foodservice margin targets were achieved, and crane segment revenue was maintained at third-quarter levels. We also expect that 2010 will see increasing benefits from the operational efficiencies, process improvements, cost reductions and synergies that we implemented in 2009."

He said cash flow from operations was $159.5 million during the fourth quarter, enabling total debt reduction of approximately $475 million for the full year, exceeding the company's $450 million target. "Considering the challenging economy, especially in the heavy equipment markets, this was a remarkable achievement representing solid performance by the entire Manitowoc team. Another highlight of 2009 was the progress that our Foodservice management team made in integrating the Manitowoc and Enodis businesses. Not only did we exceed our synergy target by more than 40 percent, we have positioned the business with significant growth opportunities going forward,” he said.

Fourth-quarter 2009 net sales in the crane segment were $480.2 million, down 49.1 percent from $943.6 million in the fourth quarter of 2008. On a sequential quarter basis, fourth quarter sales were essentially even with those in the third quarter of 2009. Crane segment operating earnings for the fourth quarter of 2009 decreased to $18.3 million from $114.9 million in the same period last year. On a sequential quarter basis, operating earnings were down $2.5 million from the third quarter of 2009 due primarily to reduced overhead absorption.

Crane segment backlog totaled $573 million at Dec. 31, 2009, a decline of 14.1 percent from the $667 million backlog at Sept. 30, 2009. "The percentage decline in backlog diminished in the fourth quarter as the net positive order flow trend that began in March continued through December," said Tellock. "The trend in our orders reflects improvement in current demand levels, most notably from Asia, Latin America, Africa, and the Middle East. We believe our strong position in emerging markets, as well as the global restructuring that we have been implementing should enable us to restore Crane segment revenue and earnings growth as the market improves.”

A replay of the Feb. 3 conference call is available by going to the Investor Relations area of the Manitowoc Web site at www.manitowoc.com.