Manitowoc Co. said Thursday that orders and backlog fell during the latest quarter as the crane-maker’s losses accelerated, leading to further cost-cutting measures including layoffs.
Shares of the company slipped 8.6% to $4.35 after hours.
The company added that it would hasten the relocation of its crawler-crane manufacturing operations from Manitowoc, Wis., to Shady Grove, Pa., and has “significantly reduced our production build schedules” for mobile cranes, according to a prepared statement.
The company had previously said it expects charges of about $105 million to $120 million for the relocation, which is expected to generate annual savings of $25 million to $30 million.
Weak energy markets, amid the plunge in the price of oil, has been a leading factor in the company’s woes.
Along with the unspecified number of additional layoffs, Manitowoc said it would temporarily close certain mobile production lines during the final quarter of the fiscal year.
“Orders and backlog for the company declined double digits during the third quarter, and these trends have continued into the fourth quarter,” said Barry Pennypacker, chief executive of the company.
MarketWatch reports, the company released on Wednesday preliminary data for the third quarter ended as of September 30th. The company reported a loss from continuing operations of about $138 million, wider than the $30 million loss during the same period a year ago. Revenue fell 20% to $350 million.
One of several big companies to split its operations, Manitowoc separated its food-service equipment business into a new public company, Manitowoc Foodservice Inc.
Write to Ezequiel Minaya at [email protected]
