Manitowoc to sell the Bulls?

Manufacturer of cranes and Manitowoc food service equipment (NYSE: MTW - News) met recently in steam, when he hit a new record for 52 weeks. However, the upward trend did not last long as enlargement soaked sentiments of investor losses. Shares in the company plunged by 7% in trade after the Bell of the last week, shortly after the announcement of the first quarter of Manitowoc. What is constrained this volatility, and the company will see a long-back bounce?

We will deepen the financial aspects of Manitowoc.

The financial statements
As a first step, we examine its revenues. Revenues from Manitowoc jumped 7% to 732.3 million in the first quarter, compared to 684.4 million in the same period last year. Revenue in the quarter was mainly contributed by commercial expansion in its cranes and the segment of equipment of restoration with new products. And the recent run in shares of the company may be a factor in this. However, clearly these figures didn't impress the market and, in fact, some strongly negative numbers the descent of the statement of income range high growth.

Hurting numbers
An improvement of the top line of the company on an absolute basis did not translate into a better profitability. In fact, the company reported a loss of $ 52 million, which was significantly higher compared to a loss of 23 million in the same quarter last year. Losses from discontinued operations jumped to 10.6 million in the first quarter.

I suspect that Manitowoc would lose to investors if it fails to get a grip on the circumstances aggravating losses. The loss per share after dilution was compounded at $0.40 to $0.18 a year ago. Such a scenario does not bode well for a company that has sought to strengthen its financial structure.

Challenges for Manitowoc
With a higher debt ratio, investors find Manitowoc in murky waters. The ratio is at a staggering rate of 436.5% from 417,6% a year ago. To mitigate the part of this concern, Manitowoc has already accepted a plan to refinance its revolving credit facility and update some loans. But these steps will bear fruit? Time will tell. For the moment, it is a major challenge for Manitowoc to its financial ills.

Apart from the financial concerns, investors must be aware of the competition that Manitowoc is faced with the industry. Peers in the industry such as Caterpillar (NYSE: CAT - News) and Deere (NYSE: Ed - News) and immediate rival of Manitowoc Terex (NYSE: TEX - News) have gradually expanded their business overseas. Manitowoc appears to be lagging behind when it comes to expand its operations abroad. Perhaps need to boost its operations in different geographical areas to trim costs and improve margins.

The bottom line Foolish
With economic recovery and demand, picking up gradually, Manitowoc expects growth this year. However, its efforts will be reflected in the subsequent quarterly earnings. For now, investors should be attentive to their investment strategies and consider implementing their pennies in financially stronger companies.

Anupama Pattanaik hold shares in one of the companies mentioned in the article. Try our services Foolish newsletter free of charge for 30 days. Us Fools can not all hold the same views, but we believe that treat a wide range of ideas makes us better investors. The Motley Fool has a disclosure policy.