Big, niche, boom trucks for power push Manitex sales up 44%

US crane builder and dealer Manitex has reported net revenue up 44% in 2012, to a record $205.2m, from $142.3m in 2011. The company said these results came from production increases at several facilities and an increase in demand.

The company enjoyed success with a higher level of penetration of products specifically targeting the energy and power line distribution sectors, which saw higher levels of activity.

Whilst all sectors experienced growth, higher capacity and specialised boom trucks had a 70% revenue increase; specialised trailers and other material handling equipment also contributed strongly.

The manufacturer said it planned to grow even more by selectively adding products and companies that fit strategically with the company. Its current business model has approximately 50% of sales going into the energy area and the other 50% sold into general commercial markets. The company is predicting above average returns for 2013 and beyond, setting a 2015 sales target of $350m, excluding any acquisitions, with earnings and cash flow consistent with current run rates.

Speaking at the investor's conference call, transcribed by SeekingAlpha.com, David J Langevin, Manitex chairman and chief executive, said: "We have 25% of our current sales coming from products that we've recently introduced into the markets. We've considered that trend by introducing into the fourth quarter a 15-ton Badger crane, which we believe will show some positive returns in the not-too-distant future. And we are very excited about seven new products which we will be introducing this year.

"We've grown our company with a combination of strategic acquisitions and internal growth. Although we've not acquired any business in the last 18 months, we believe our future growth includes repeating the same combination of timely strategic acquisitions and creating niche products in the markets we serve. And so with these business additions, combined with new products, our optimism in the markets we serve and the continued execution, we believe we can continue to grow at above normal rates for companies in our field."

Gross profit was down slightly to 19.7% of sales compared to 20.6% in 2011. This was credited to increased tax expenses as well as a smaller number of high margin parts sales in total revenues, despite an increase in part sales dollar value, due to the rise in new unit sales year-over-year.