17.03.2011

Manitex up 72%

US based boom truck and crane manufacturer Manitex has reported 2010 revenues up 72 percent while profits more than doubled.

Full year revenues for 2010 were $95.9 million almost 72 percent higher than in 2009, Pre-tax profits for the year were $3.1 million more than double last year’s levels.

The quarter showed an even stronger rebound, with revenues up 98 percent to $29.5 million, of this 32 percent of the growth was organic, with the rest down to the acquisition of LoadKing at the end of last year and the operating agreement with CVS Ferrari in June. Meanwhile pre-tax profits for the quarter fell from 2.1 million in 2009 to $1.38 million this year. The reason being that the fourth quarter 2009 was boosted by a one-off gain with the LoadKing acquisition.

The company’s backlog as of the end of December was 80 percent higher than at the same time last year at $39.9 million. Net debt was up marginally to $34 million.

Chief executive David Langevin said: "We are encouraged by the significant improvement in our performance in 2010, rebounding from the severe conditions of 2009. Throughout this downturn, we have driven for expansion of our business and financial results by embarking on a broad international diversification program combined with the addition to our portfolio of several well established and respected product lines through acquisitions and by initiating an operating agreement with CVS which may lead to an acquisition of this business.”

“By combining these measures with cost controls and a product emphasis on specialised lifting equipment, for the quarter and the year ended December 31, 2010, we are able to report a significant improvement in our top line sales and record EBITDA margins. We believe that with our platform of niche products serving higher growth markets, we may well see continued expansion of the business as the overall economy continues a slow recovery."

Vertikal Comment

This is a great result my anybody's measure and vindicates the Manitex expansion strategy. It still has a great deal of potential to develop its product range and to get serious about its international distribution and market awareness.

If it plays its cards right it could see a similar level of growth in 2011 which will position it well for the stronger pick up expected in a year or two. One key factor will be what it decides to do with CVS Ferrari by now it should have a good picture of the business and its potential, it will be very interesting to what it does with it later this year.