On a GAAP basis, the company reported a net loss of $18.1 million, or $0.14 per diluted share for the quarter, versus net income of $133.9 million, or $1.01 per diluted share in the second quarter of 2008. The net loss included a number of unusual items totaling approximately $43 million on an after-tax basis. These items included a $23 million loss related to the sale of the Enodis ice business and $14 million of restructuring charges.

Excluding unusual items, adjusted earnings from continuing operations were $24.8 million, or $0.19 per share, versus similarly adjusted earnings of $121.2 million, or $0.92 per share in the second quarter of 2008. A reconciliation of GAAP earnings to earnings from continuing operations before special items is provided later in this press release.

"I am generally pleased with the progress that we are making in managing through these difficult times," said Glen E. Tellock, Manitowoc's chairman and chief executive officer. "While we expect cyclicality in the crane business, the speed and severity of this downturn have been worse than we have seen in the past. We are adjusting our operations appropriately for the current economic realities in ways that should permanently strengthen the business. We have implemented specific actions that will eliminate approximately $365 million in cost out of our businesses annually, with approximately $240 million of those cost reductions to be realized this year.

"Although market conditions are difficult, we continue to generate positive cash flow and reduce debt. The reductions in our expense levels and working capital are enabling us to make progress toward our debt reduction goals."

Business Segment Results

Second-quarter 2009 net sales in the Crane segment were $652.3 million, down 39 percent from $1.064 billion in the second quarter of the prior year. Crane segment operating earnings for the second quarter of 2009 decreased 70 percent to $49.5 million from $167.0 million in the same period last year. Excluding the negative impact of foreign currency on the Crane segment results, second-quarter sales and operating earnings were down 31 percent and 62 percent, respectively.

Crane segment backlog totaled $901 million at June 30, 2009, a decrease of 36 percent from the $1.397 billion backlog at March 31, 2009. Although the company has seen stabilization in the form of net positive order flow, the magnitude of new orders is less than the quarterly shipments.

"Obviously, crane demand continues to be weak across most of our markets," said Tellock. "The exceptions include portions of Asia, Latin America, and Africa. We are also encouraged that overall new orders are continuing to exceed cancellations in terms of both unit and dollar volumes."

In the Foodservice segment, second-quarter 2009 net sales increased to $382.5 million from $127.3 million in the second quarter of 2008. This increase was related to the acquisition of Enodis. On a pro-forma basis, Foodservice revenues decreased 19 percent in the second quarter of 2009 from $472 million in the second quarter of 2008. This includes a 4 percent negative impact from foreign currency fluctuations.

Foodservice operating earnings for the second quarter of 2009 were $46.4 million, up from $22.9 million in the same period in 2008. On a pro-forma basis, Foodservice operating earnings were down 12.5 percent, due primarily to the current economic environment that has led to an extended contraction in capital spending by the restaurant industry. The Foodservice segment's organic revenue and operating earnings, which exclude the revenue and earnings from Enodis, both declined 24 percent for the second quarter of 2009 compared with the second quarter of 2008. The lower percentage decline in Foodservice revenues and earnings on a pro-forma basis compared to organic results demonstrates the positive benefits that this broadened equipment product line offering provides the segment in terms of revenue and cost- reduction opportunities.

"Our integration of Enodis continues to make excellent progress," said Tellock. "Our product line now covers the full range of kitchen needs for our diverse and expanding base of global clients. At the same time, we are taking advantage of current market conditions to serve our customers more efficiently by significantly reducing our cost structure across the combined organizations."

Cash Flow/Debt Reduction

Cash flow from operations in the second quarter of $16.3 million, together with proceeds from the sale of the Enodis ice machine business, enabled Manitowoc to reduce its total debt by approximately $161 million in the quarter. This debt reduction was achieved despite a use of cash for a final settlement of a legacy Enodis lawsuit as well as the fees to amend the company's credit agreement. These non-recurring items totaled $31 million in the quarter. Given the company's normal second-half cash generation characteristics and its current outlook, Manitowoc is also reaffirming its full-year debt reduction target of $450 million.

GAAP Reconciliation

In this release, the company refers to various non-GAAP measures. We believe that these measures are helpful to investors in assessing the company's ongoing performance of its underlying businesses before the impact of special items. In addition, these non-GAAP measures provide a comparison to commonly used financial metrics within the professional investing community which do not include special items. Earnings and earnings per share before special items reconcile to earnings presented according to GAAP are as follows (in millions, except per share data):

                                     Three Months Ended    Six Months Ended                                           June 30             June 30                                           -------             -------                                        2009     2008       2009     2008                                        ----     ----       ----     ----    Net earnings (loss)                $(18.1)   $133.9    $(674.4)   $236.6   Special items, net of tax:       Earnings (loss) from        discontinued operations          3.0    (12.7)      2.6       (20.0)       Loss on sale of discontinued        operations                      23.2        -      23.2           -       Goodwill impairment for        discontinued operations            -        -      28.8           -       Goodwill impairment for        continuing operations              -        -     647.1           -       Restructuring expense            14.0        -      16.8           -       Other                             2.7        -       3.7           -                                         ---      ---       ---         ---   Net earnings before special items   $24.8   $121.2     $47.8      $216.6                                       =====   ======     =====      ======    Diluted earnings (loss) per share  $(0.14)   $1.01    $(5.18)      $1.79   Special items, net of tax:       Earnings (loss) from        discontinued operations         0.02    (0.10)     0.02       (0.15)       Loss on sale of discontinued        operations                      0.18        -      0.18           -       Goodwill impairment for        discontinued operations            -        -      0.22           -       Goodwill impairment for        continuing operations              -        -      4.97           -       Restructuring expense            0.11        -      0.13           -       Other                            0.02        -      0.03           -                                        ----      ---      ----         ---   Diluted earnings per share before    special items                      $0.19    $0.92     $0.37       $1.64                                       =====    =====     =====       =====     EBITDA  

EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, plus certain items such as pro-forma acquisition results, that are adjustments per the credit agreement definition.