MANITOWOC, Wis. — The Manitowoc Company, Inc. (NYSE: MTW) announced today the next steps in its global Foodservice manufacturing strategy that includes the company’s intention to move products currently manufactured at its Cleveland, Ohio facility to other locations, along with an anticipated shutdown of this facility. These operational changes are part of a strategic initiative to address production overcapacity and align the company’s global manufacturing footprint for improved operational agility, enhanced product quality, and financial performance.
“As part of our ongoing global manufacturing strategy, we intend to close our Cleveland facility, which produces a range of market-leading products including steamers, conveyor ovens, and mini combination ovens. These efforts are essential as we continue preparations for the eventual spin-off of the company’s Foodservice business in the first quarter of 2016. This decision was also driven by the need to improve our operational efficiencies, while also meeting the demands of our customers and enabling us to compete more effectively on a global basis,” commented Hubertus M. Muehlhaeuser, president and chief executive officer of Manitowoc Foodservice Inc. and senior vice president of The Manitowoc Company.
In addition to the intended closure of the Cleveland facility, The Manitowoc Company expects to close its Irwindale, California distribution warehouse. The company will discuss these restructuring activities in its third-quarter 2015 earnings release and conference call, as well as the anticipated costs and potential savings generated by these efforts.
About The Manitowoc Company, Inc.
Founded in 1902, The Manitowoc Company, Inc. is a multi-industry, capital goods manufacturer with 92 manufacturing, distribution, and service facilities in 25 countries. The company is recognized globally as one of the premier innovators and providers of crawler cranes, tower cranes, and mobile cranes for the heavy construction industry. Manitowoc is also one of the world’s leading innovators and manufacturers of commercial foodservice equipment, which includes 24 market-leading brands of hot- and cold-focused equipment. In addition, both segments are complemented by a slate of industry-leading product support services. In 2014, Manitowoc’s revenues totaled $3.9 billion, with approximately half of these revenues generated outside of the United States.
Forward-looking Statements
This press release includes "forward-looking statements" intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of the management of the company and are subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements typically containing words such as "intends," "expects," "anticipates," "targets," "estimates," and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results and developments to differ materially include, among others:
- the ability to increase operational efficiencies, including capacity utilization of facilities, and the ability to capitalize on those efficiencies;
- issues relating to the ability to timely and effectively execute on manufacturing strategies, including issues relating to plant closings, and/or consolidations of existing facilities and operations;
- issues related to workforce reductions at certain facilities and workforce increases at others;
- the ability to capitalize on key strategic opportunities and the ability to implement Manitowoc’s long-term initiatives;
- possible negative effects on the Company’s business operations, assets or financial results as a result of the planned separation of the Company into two independent publicly-traded companies;
- capitalization of the two independent companies;
- unanticipated changes in customer demand, including changes in demand for foodservice equipment, changes in capex spending by large foodservice chains, and changes in demand for used foodservice equipment; and
- risks and other factors cited in Manitowoc's filings with the United States Securities and Exchange Commission.
Manitowoc undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements only speak as of the date on which they are made. Information on the potential factors that could affect the company's actual results of operations is included in its filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2014.
Source: Manitowoc
