Public E&S Companies Grew Strongly Second Quarter

While there is concern the current economic slowdown will undermine the general economy and with it the foodservice equipment and supplies market, there is no question a strong E&S recovery was underway during the first half of 2011. Seven large public equipment and supplies manufacturers saw blended revenues grow 8.5% in the second quarter this year versus the same quarter last year. The gains come on top of a 6.7% increase in the first quarter and represent the fifth consecutive quarter of blended revenue growth by the seven companies that began the second quarter of ’10.

The five equipment-oriented companies saw blended sales jump 10% in the quarter while the two supplies-oriented companies reported a 2.2% gain. All seven companies saw sales increase. For the first half of the year, the equipment companies grew 9.2%, the supplies companies 1.5% and all seven a combined 7.7%. Combined, the seven companies represent about $3.5 billion in annual E&S sales.

More chain-oriented companies such as Middleby Corp. and Manitowoc Foodservice led the recovery beginning last year. But in the second quarter, results were more balanced. Spec-oriented companies such ITW’s Food Equipment Group, which posted a 10% increase, and Rational North America, up 23.3% for the quarter, also did well. Revenues at Middleby rose 16.2%, Standex Foodservice grew sales 9.8% and Manitowoc, by far the largest of the seven, was up 7.4%.

On the supplies-oriented side, Carlisle Foodservice reported sales rose 3.4%, while Libbey Foodservice was up 1.5%.

The strong gains from the public companies mirror results reported earlier by the Manufacturers’ Agents Association for the Foodservice Industry. MAFSI’s Business Barometer rose 5.7% in the second quarter versus the year-prior quarter, on top of a 4% increase the first quarter ’11