May 1--The Manitowoc Co. swung to a first-quarter loss after taking charges of $700 million to write down goodwill in its food service business.

The maker of construction cranes and food service equipment reported a loss of $656.3 million, or $5.04 a share, compared to net income of $102.7 million, or 78 cents, a year earlier.

Revenue rose 4% to $1.03 billion from $988.5 million. The increase was due primarily to Manitowoc's $2.7 billion acquisition of Enodis Plc, a British food service company, last October.

The company took non-cash impairment charges of $700 million to write down goodwill and other assets in certain food service units. It also had a previously announced write-down of $29 million on the sale of the Enodis ice business.

Also affecting earnings was a reduction in crane sales, a $10.8 million reduction from foreign currency fluctuations, and restructuring charges of $2.8 million, the company said.

Crane sales were down nearly 24% to $672.9 million from $884.4 million.

Food service sales increased to $354.7 million from $104 million, primarily because of the acquisition of Enodis.

Excluding the Enodis ice business, food service revenue declined 17%.

"This quarter contrasts sharply with the first quarter of 2008 when we were near the peak of the business cycle in our crane segment," CEO Glen Tellock said in a news release.

"We experienced a dramatic reversal in demand for cranes over the past several quarters, driven primarily by constrained credit availability.

"As a result, customers have canceled or delayed deliveries across many of our end markets and product lines. Fortunately, we have experienced a less severe decline in the food service segment."

Manitowoc Co. employs 18,000 people globally and is one of northeast Wisconsin's largest employers.

The company has taken aggressive actions to mitigate the effects of the recession, including temporary production shutdowns and work-force reductions.

Manitowoc Cranes recently eliminated 159 jobs, or about 13% of its work force in Manitowoc and Port Washington.

There also have been job cuts at the company's crane factory in Shady Grove, Pa.

To reduce costs, the company has taken over some manufacturing that was previously outsourced.

Manitowoc executives will discuss the quarter results in a conference call scheduled for 9 a.m. Friday.

Manitowoc Co.

1st quarter % 3/31 2009 2008 change Sales $1,027.6 $988.5 4% Net income ($656.3) $102.7 na EPS (diluted) ($5.04) $0.78 na

Figures in millions except for earnings per share. Percentages are based on unrounded sales and income figures.

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