Manitex Backlog Grows Due to Global Crane Demand

August 8, 2008 • In its second quarter financial statement, Manitex International Inc., Bridgeview, Ill., announced its Manitex product line produced exceptional results, despite the declining market in North America and rising material costs.

 

“Our backlog continues to rise with global demand for our products, particularly our 50-ton and other high-capacity cranes, and we are particularly encouraged by the 22 percent year-to-date increase in our crane backlog this year,” said David Langevin, chairman and CEO of Manitex. “We have received in excess of 130 orders for our 50-ton crane since its launch a year ago. On the materials-handling side, we have responded to the more difficult market conditions by commencing a streamlining of our operations, and will continue to prudently position ourselves so that we are prepared when this market finds firmer footing.”

 

The company has increased net income from continuing operations to $700,000 in the second quarter of 2008, compared to $500,000 in the second quarter of 2007. Additionally, it has increased net income for the second quarter to $900,000, compared to $300,000 million for the same period last year.

Manitex experienced a 54 percent decline in interest expense for the quarter reflected compared to the second quarter of 2007, reflecting the actions implemented in 2007 to retire debt and the benefit of lower interest rates.

 

Net revenues for the quarter were $26.5 million, compared to $30 million for the three months ended June 30, 2007. The decrease in revenues is primarily due to a decrease in the material-handling product lines of military forklifts and specialized carriers that were strong in the second quarter of 2007.

 

Additionally, second quarter 2008 gross profit was $4.5 million, or 16.8 percent of net revenues, compared to $5.8 million, or 19.4 percent of net revenues in the second quarter of 2007. The decrease in gross margin reflects lower margin for the military and specialized forklift/carrier product line due to lower revenues, the negative impact of a stronger Canadian dollar, and a change in product mix. Crane product margins showed a slight decrease due to material cost increases not fully recovered by price increases or by the improvement in margin percent from an increase in sales of higher tonnage cranes.

 

In the second half of 2008 and into 2009, Manitex expects to see growth from its international distribution agreements. “For 2009, we anticipate at least 10 percent of our revenues will come from our international diversification with our new distributors who sell into the oil, gas, and mining markets, particularly within Russia, the [11 former Soviet Republics], and the Middle East,” Langevin said. Manitex has obtained Russian certification on its larger cranes and shipped a 50-ton crane to its newly appointed Russian distributor, which it will demonstrate at the ConExpo Russia trade show in Moscow in September.

 

“Against the backdrop of an industry that has seen a significant decline during 2008, we are pleased with our performance to date and with the 16 percent increase we have seen in our consolidated backlog,” said Andrew Rooke, president and chief operating officer. “The strength of our crane business is moving us forward and our expectation is that we will see continued growth in this group as we increase production and manage the supply chain to deliver our larger cranes to our global markets. This growth will be combined with expected profitability improvements from the streamlining that is underway in the material handling group that should help these operations to be properly positioned when these markets recover.

 

To help offset increasing material costs and supply chain shortages, Manitex recently announced a price increase for its crane products and continues to pursue sourcing opportunities to help offset these cost increases. “Certain key materials are also under supply pressure, which has a disruptive impact on production and inventory levels, and we have initiated actions internally and with our suppliers to progressively address these,” Rooke said.