E&S Public Companies Grow 3Q Sales 3.2%

Third-quarter revenue growth by the seven publicly reporting foodservice equipment and supplies companies were a very mixed bag, according to data compiled by John Muldowney, principal at Clarity Marketing and a marketing executive at the Boelter Cos. Still, blended sales of the companies were positive, with a gain of 3.2%, compared with 3Q/2012. Sales for the seven companies were 3.1% higher for the nine-month calendar period. In comparison, Foodservice Equipment Reports current forecast for 2013 predicts a 3.3% nominal sales gain.

The numbers may be a bit misleading in terms of the overall market. The two supplies-oriented companies, Libbey Foodservice and Carlisle Foodservice, posted sharp declines during the third quarter. Libbey reported sales down 4% while Carlisle sales fell 7.3%. For the nine months, combined sales of the two companies are down 2.5%. But the negative results may be specific to the two companies. Two large privately held supplies-oriented companies tell FER that their sales for the third quarter were positive.

Results for the five equipment-oriented companies were mixed. Two posted double-digits gains, two had moderate increases and one was negative. Middleby Foodservice had another very strong quarter with overall sales up 16.2%; organic sales rose 11.7%. Rational North America posted an 11.8% gain. Manitowoc Foodservice saw sales up 2.4% while ITW Food Equipment Group’s estimated North American sales rose 2%. Standex Food Service sales were off 3.6%. Two decent quarters of overall growth for the five companies, following a very slow first quarter, has combined equipment sales up 4.1% for the nine months.

The Manufacturers’ Agents Association for the Foodservice Industry is expected to release its third-quarter MAFSI Barometer this week. The Barometer posted a record 6.1% increase in the second quarter.