The Manitowoc Company Reports Fourth-Quarter Results and Provides 2016 Guidance

The Manitowoc Company, Inc. (NYSE: MTW) today reported fourth-quarter
2015 sales of $934.8 million, a decrease of 9.9 percent, compared to
sales of $1.0 billion in the fourth quarter of 2014. On a GAAP basis,
the company reported net earnings of $43.8 million, or $0.32 per diluted
share, in the fourth quarter versus net earnings of $33.6 million, or
$0.25 per diluted share, in the fourth quarter of 2014. Both periods
included special items. Excluding special items, the adjusted earnings
from continuing operations were $59.7 million, or $0.43 per diluted
share, in the fourth quarter of 2015, versus adjusted earnings from
continuing operations of $37.5 million, or $0.27 per diluted share, in
the fourth quarter of 2014.

For the full-year of 2015, sales were $3.4 billion, an 11.6 percent
decrease, from $3.9 billion in 2014. GAAP net income for 2015 was $63.5
million, or $0.46 per share, versus GAAP net income of $144.5 million,
or $1.05 in the prior year. Excluding the special items described in the
reconciliation below, adjusted earnings from continuing operations in
2015 were $96.8 million, or $0.70 per share, versus adjusted earnings
from continuing operations of $159.2 million, or $1.16 per share in 2014.

Adjustments to GAAP results include certain items management considers
in evaluating operating performance in each period. A reconciliation of
GAAP net earnings to net earnings before special items for the quarter
and year-to-date periods is provided later in this press release.

“From a sales perspective, our Foodservice segment delivered mid-single
digit sales growth in the quarter. Leverage from higher sales and
excellent progress in executing Foodservice’s previously announced
profitability initiatives drove a significant improvement in operating
margins. Our Cranes business performed as expected during the fourth
quarter. While orders improved sequentially from the third quarter,
sales continue to be impacted by tepid customer demand. However, the
benefits of cost control actions are beginning to take hold to improve
overall profitability,” commented Kenneth W. Krueger, Manitowoc’s
chairman and interim chief executive officer.

“While we continue to push forward with our spin-off activities, the
recent weakness in the credit markets has put pressure on our timeline.
However, we continue to target completion of the spin-off of our
Foodservice business in the first quarter of 2016,” Krueger added.

Foodservice Segment Results

Fourth-quarter 2015 net sales for Foodservice were up 4.7 percent, to
$391.7 million from $374.2 million in the fourth quarter of 2014.
Continued strength in cold-side products and KitchenCare were the
primary growth drivers, while hot-side sales are recovering and
large-chain spending is firming.

Foodservice operating earnings for the fourth quarter of 2015 were $72.7
million versus $48.3 million for the fourth quarter of 2014. This
produced an operating margin of 18.6 percent in Foodservice for the
fourth quarter of 2015, compared to 12.9 percent for the fourth quarter
of 2014. This was a 570 basis point year-over-year improvement and a 200
basis point sequential improvement over third-quarter 2015 results. The
improvement was driven largely by the impact of the cost-saving
initiatives, product line simplification, and stronger KitchenCare
results.

For the full year, Foodservice revenues were stable at $1.6 billion,
operating earnings were up 2.4 percent to $239.7 million, while the
operating margin increased to 15.3 percent compared to 14.8 percent in
the prior year.

“We are pleased with the improved performance in Foodservice,” said
Hubertus Muehlhaeuser, president and chief executive officer of
Manitowoc Foodservice. “During the quarter, we delivered improved
financial results driven by the actions we’ve taken over the past twelve
months, as well as the announced initiatives to simplify and right-size
our business.”

Crane Segment Results

Fourth-quarter 2015 net sales in Cranes were down 18.1 percent, to
$543.1 million, versus $663.2 million in the fourth quarter of 2014. The
decline was largely attributable to continuing weakness in rough-terrain
cranes and boom trucks due to declining oil prices and its impact across
energy-related end markets. This was partially offset by strength in
crawler cranes driven by accelerating shipments of our VPC technology.
In addition, tower cranes continue to see solid demand from improving
residential and commercial construction markets, particularly in Europe.

Crane operating earnings for the fourth quarter of 2015 were $24.1
million, down from $45.3 million in the same period last year. This
resulted in an operating margin of 4.4 percent for the fourth quarter of
2015 versus 6.8 percent for the fourth quarter of 2014, and 1.0 percent
in the third quarter of 2015. Year-over-year fourth-quarter 2015 margins
were affected by lower absorption rates and pricing pressure exacerbated
by currency headwinds, that were partially offset by the impact of cost
reduction efforts. Sequential quarterly margin improvement was driven by
volume gains and cost improvement.

For the full year, Crane revenue declined 19.1 percent to $1.9 billion,
and operating earnings declined to $64.3 million versus $163.9 million
in the prior-year period. Operating margins were 3.4 percent for the
full year ended 2015 compared to 7.1 percent in 2014.

Crane backlog totaled $513 million as of December 31, 2015, down from
the fourth-quarter 2014 backlog of $738 million. Fourth-quarter 2015
orders of $424 million increased 26 percent from the third quarter of
2015, representing a book-to-bill of 0.8 times.

“During the quarter, we saw pockets of better demand within our
all-terrain category fueled by our new five-axle GMK5250L. However, the
overall business remains challenged by an uncertain macro-economic
environment,” stated Barry L. Pennypacker, president and chief executive
officer of Manitowoc Cranes. “That said, in my first month at Manitowoc,
I have had an opportunity to meet with many of our employees and
customers. What I have found is a solid foundation centered around
innovation and aftermarket support. There are, however, a number of
areas that I believe need to be addressed to enhance our financial
performance and position us to deliver profitable growth in any
environment.”

Cash Flow

Cash flow from operating activities for the full year of 2015 was $98.0
million, driven by cash from profitability. Full-year capital
expenditures totaled $68.1 million compared to $84.8 million for the
full-year 2014.

2016 Guidance

The company is initiating separate full-year 2016 guidance in
anticipation of the separation of the Crane and Foodservice businesses.
This guidance is inclusive of each business’s portion of corporate
costs, as well as dis-synergies associated with establishing two
independent public companies. These costs are expected to be
approximately $30 million in each business at an annual run-rate
effective on the date of the separation. In addition, the guidance for
Foodservice excludes the Kysor Panel business (KPS), which was divested
on December 7, 2015 and generated approximately $122 million in sales
and $12.8 million in operating earnings, which are included in 2015
results.

For the full-year 2016, Manitowoc Foodservice expects:

• Organic Revenue – up 2% - 4% over 2015 net sales – as adjusted
  (excludes KPS);
• Organic operating margin – between 16% and 17% (excludes KPS, includes
  corporate costs);
• Depreciation – between $21 and $24 million;
• Amortization expense – between $30 and $33 million; and
• Capital expenditures – between $23 and $27 million.

“The full-year 2016 net sales outlook for Manitowoc Foodservice assumes
continued momentum and progress in our efforts to simplify the business
and drive margin improvement,” continued Muehlhaeuser. “Our revenue
guidance reflects the absence of the Kysor Panel sales. On this basis,
our revenue is expected to be up 2% to 4%. Also on this basis, our
full-year 2016 operating margin outlook reflects continued margin
expansion. It also includes the projected incremental 2016 benefit of
all previously announced cost savings and margin improvement
initiatives, as well as the estimated incremental costs associated with
the spin-off of the Foodservice business.”

For the full-year 2016, Manitowoc Cranes expects:

• Revenue – approximately flat;
• Operating margin – approximately 4%;
• Depreciation – between $45 and $50 million;
• Amortization expense – between $3 and $4 million; and
• Capital expenditures – approximately $55 - $65 million.

“The full-year 2016 net sales outlook for Manitowoc Cranes assumes no
improvement in the global economic backdrop, but modest stabilization in
demand. The full-year 2016 operating margin outlook incorporates the
incremental corporate expenses Cranes will assume post-spin, offset by
the cost optimization efforts we will continue to undertake,” concluded
Pennypacker.

About The Manitowoc Company, Inc.

Founded in 1902, The Manitowoc Company, Inc. is a multi-industry,
capital goods manufacturer with 80 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 23 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 2015, Manitowoc’s revenues totaled $3.4 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 complete the separation of the company’s Crane and
  Foodservice business and the impact of that separation on the company;
  including the risks relating to the company being able to operate
  effectively following the separation;
• unanticipated changes in revenues, margins, costs, and capital
  expenditures;
• the ability to significantly improve profitability;
• the ability to direct resources to those areas that will deliver
  the highest returns;
• uncertainties associated with new product introductions, the
  successful development and market acceptance of new and innovative
  products that drive growth;
• the ability to focus on the customer, new technologies, and
  innovation;
• the ability to focus and capitalize on product quality and
  reliability;
• the ability to increase operational efficiencies across each of
  Manitowoc’s business segments and to capitalize on those efficiencies;
• the ability to successfully execute product rationalization
  initiatives;
• the ability to capitalize on key strategic opportunities and the
  ability to implement Manitowoc’s long-term initiatives;
• the ability to generate cash and manage working capital consistent
  with Manitowoc’s stated goals;
• the ability to convert order and order activity into sales and the
  timing of those sales;
• pressure of financing leverage;
• matters impacting the successful and timely implementation of ERP
  systems;
• foreign currency fluctuations and their impact on reported results
  and hedges in place with Manitowoc;
• changes in raw material and commodity prices;
• unexpected issues associated with the quality of materials and
  components sourced from third parties and the resolution of those
  issues;
• unexpected issues associated with the availability and viability of
  suppliers;
• the risks associated with growth;
• geographic factors and political and economic conditions and risks;
• crude oil prices;
• cyclicality of the construction industry;
• actions of competitors;
• changes in economic or industry conditions generally or in the
  markets served by Manitowoc;
• unanticipated changes in customer demand, including changes in
  global demand for high-capacity lifting equipment; changes in demand
  for lifting equipment and foodservice equipment in emerging economies;
  changes in capex spending by large foodservice chains, and changes in
  demand for used lifting equipment and foodservice equipment;
• unexpected costs in protecting our intellectual property;
• global expansion of customers;
• the replacement cycle of technologically obsolete cranes;
• the ability of Manitowoc's customers to receive financing;
• foodservice equipment replacement cycles in national accounts and
  global chains, including unanticipated issues associated with
  refresh/renovation plans by national restaurant accounts and global
  chains;
• efficiencies and capacity utilization of facilities;
• issues relating to the ability to timely and effectively execute on
  manufacturing strategies, including issues relating to new plant
  start-ups, plant closings, and/or consolidations of existing
  facilities and operations;
• the ability to retain our executive management team and to attract
  qualified new personnel;
• issues related to workforce reductions and subsequent rehiring;
• work stoppages, labor negotiations, labor rates, and temporary
  labor costs;
• growth or general and administrative expenses, including health
  care and postretirement costs;
• government approval and funding of projects and the effect of
  government-related issues or developments;
• the ability to complete and appropriately integrate restructurings,
  consolidations, acquisitions, divestitures, strategic alliances, joint
  ventures, and other strategic alternatives;
• realization of anticipated earnings enhancements, cost savings,
  strategic options and other synergies, and the anticipated timing to
  realize those savings, synergies, and options;
• unanticipated issues affecting the effective tax rate for the year;
• unanticipated changes in the capital and financial markets;
• changes in the interest rate environment;
• compliance with debt covenants and maintenance of credit ratings as
  well as the impact of interest and principal repayment of our future
  debt obligations;
• risks related to actions of activist shareholders;
• changes in laws throughout the world;
• natural disasters disrupting commerce in one or more regions of the
  world;
• risks associated with data security and technological systems and
  protections;
• acts of terrorism; 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.

Adjusted EBITDA

The company defines Adjusted EBITDA as earnings before interest, taxes,
depreciation, and amortization, plus certain items such as pro-forma
acquisition results and the addback of certain restructuring charges,
that are adjustments per the credit agreement definition. The company's
trailing twelve-month Adjusted EBITDA for covenant compliance purposes
as of December 31, 2015 was $347.3 million. The reconciliation of net
income attributable to Manitowoc to Adjusted EBITDA is as follows (in
millions):

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 as follows (in millions, except per share data):

Adjusted Operating Earnings

In this release, the company refers to organic operating earnings for
the Foodservice segment. We believe that this measure is helpful to
investors in assessing the company's ongoing performance of its
underlying businesses before the impact of divestitures. Operating
earnings is defined as earnings from continuing operations before
amortization.

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