Manitowoc Company, Inc. (MTW) was the second largest detractor during the quarter after falling over 28 percent and costing the portfolio 32 basis points of return. Shares of the capital goods manufacturer fell sharply in July after cutting its 2014 forecasts for crane sales and foodservice operating margins. The company now anticipates that revenue in its crane-making division will be flat or slightly negative in 2014. We continue to see a restructuring opportunity in Manitowoc, with a potential break-up of their industrial crane-making and foodservice segments.
From John Keeley (Trades, Portfolio)’s KEELEY Small Cap Value Fund Q3 2014 Commentary.
