Manitowoc shares fall after ship building sale

The segment has been building vessels for Great Lakes use since 1902 and is the smallest of the Manitowoc, Wis.-based company's three main businesses. It generated $321 million in revenue last year. The buyer is Italian shipbuilder Fincantieri Marine Group Holdings Inc.

Deutsche Bank-North America analyst Nigel Coe said that the loss of revenue from the sale of the marine segment will offset expected declines in taxes and interest expenses. As a result, he cut his 2009 earnings per share estimate to $3.80 from $3.86. Analysts polled by Thomson Financial expect, on average, 2009 earnings per share of $3.88.

Coe also lowered his price target on Manitowoc shares to $34 from $35.

The sale, expected to close late this year, will give Manitowoc an after-tax gain of approximately 60 cents per share. Proceeds will be used for general corporate purposes, including paying down debt from its buyout of British cooking equipment supplier Enodis PLC.

Shares of Manitowoc, which agreed to buy Enodis for $2.1 billion in July, fell $2.65, or 10.3 percent, to $23.03 after hitting a 52-week low of $22.93 earlier in the session.