15.11.2007

Manitex to exceed forecasts

Veri-Tek, the parent company of Manitex and Manitex Lift-king the producer of Manitex boom trucks and Liftking/Noble Rough Terrain fork- trucks and telescopic handlers has reported a 33 percent increase in third quarter revenues compared to the same period in 2006.

Nine month revenues for the group were just under $80 million, but cannot be meaningfully compared with 2006, as Manitex was acquired during the period and the former testing and assembly businesses discontinued.

Pre tax profits for the nine months were $1.6 million and $805,000 for the quarter, compared to $95,000 in the same quarter in 2006.

In the past nine months Manitex has successful launched a 50 ton/45 tonne commercially mounted truck crane for which it claims to already have over 50 orders. Meanwhile Manitex-Liftking acquired the Noble range of rough terrain fork-trucks, a product line originally designed by CAT which it is now merging with the Lift-King range.
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The 50 ton (45 tonne) Manitex 5096S truck mount

As a result of the strong third quarter Veri-Tek is raising its revenue projections for its first full year to $105 million, up from its original forecast of $95 to $100 million.

Vertikal Comment

We have not monitored Veri-Tek/Manitex results before, however as it heads towards the year end and with its increasing reliance on truck cranes and Rough Terrain fork- trucks it increasingly fits with the products we cover.

Any comparison with 2006 is pointless given the changes that have occurred with the business. However one thing that is clear is that the business has performed exceptionally well in a market that on the surface looks increasingly challenging.

Smaller boom trucks and US built RT fork-trucks/Telehandlers are heavily reliant on the North American residential construction market. Manitex has done well to focus on larger, higher capacity boom trucks and traditional mast type forklifts which are focused more on the oilfield development and commercial construction industries.

The company has also stepped up its export efforts with plans to introduce CE versions of its larger truck cranes, while targeting other Oil based markets such as the Middle East.

Selling boom trucks into Europe is normally a challenge too far, however the largest models in the Manitex range with their cabs, strong lift capacities and long booms are more commercial mount truck cranes than boom trucks and could do well in Europe, fitting into rental fleets between articulated loader cranes and All Terrain cranes as well as working as assist cranes on larger rigs.

Much will depend on finding the right distribution and how well the company manages the CE conversions - Watch this space. Manitex could be a surprise success story for 2008.