Manitowoc Company, Inc. (MTW)
The Company is a diversified, multi-industry manufacturer of engineered capital goods and support services for selected market segments, which includes Cranes and Related Products, Foodservice Equipment, and Marine.
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Massive writedowns have brought the balance sheet in touch with reality, at least briefly. Investors may think they can take hyped up "operating earnings" without taking the inevitable "reported losses". They are sadly mistaken.
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I work in this industry and I have seen a steady decline in all goods and services. Yes they bought the biggest competitor in the food service industry and now they have a nice monopoly. But, things are still very rough.
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Need construction projects to start back up for machines to be bought from Manitowoc.
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Recent troubles will drag on for at least two years.
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Z-score of 1.12 for 2008 figures
normally means they have a better than 50/50 chance
of going bankrupt in the next 2 years.
Paying $2.7 billion for Enodis is partly to blame for low Z-score,
but it has also left them with $2.5 billion LT debt.
Their markets (cranes and food-service equipment) are both susceptible to a recession, so am expecting their sales & profits to be hard hit over the next 2 years or so.
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IT RATED NETURAL FEB 09 .
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They spent too much on their recent purchase and will not
see any profit from it for some time. Weak dollar also a negative.
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The Manitowoc Company, Inc. is one of the world's largest providers of lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. As a leading manufacturer of ice-cube machines, ce/beverage dispensers, and commercial refrigeration equipment, the company offers the broadest line of cold-focused equipment in the foodservice industry. In addition, the company is a leading provider of shipbuilding, ship repair, and conversion services for government, military, and commercial customers throughout the U.S. maritime industry. Strong fundamentals, EPS Growth 5yrs 45.3, Cash Flow Growth 5 yrs 54.1. Will swing between $35-45 over the next two to four months
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Outperform to underperform at 114 to 1? This company may be good, but is it *that* good.
Well, I'll go out on a limb here and double the underperform call count on this CAPS superstar.

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