Boston, MA 03/12/2014 (wallstreetpr) – Manitex International (NASDAQ:MNTX) recently declared its quarterly results. Though the results were in line with expectations, the company is still heavily dependent on macroeconomic conditions and the trends are not very encouraging.
The Quarter Results:
Manitex International (NASDAQ:MNTX) declared earnings of $0.22 per share in line with the analysts’ expectations. While analysts had expected revenues of $66.29 million for the quarter, the company could manage to declare only $65.40 million. However, international revenue growth of about 16% was very encouraging. The company also announced that a new 70-ton crane would add more than 20% to the revenues in the coming period.
Difficult Market Conditions:
Though the quarter ended on a positive note, investors are still worried about the condition of the crane market. Manitex International (NASDAQ:MNTX) has different offerings for various markets, but not all of them are doing as well as expected. Investors are still hopeful of a full recovery. The land drilling segment is yet to recover fully in the U.S., even the growth in the housing and commercial construction markets is sluggish. Till now the company has outgrown the industry growth. Much of the growth resulted from its acquisitions. But these acquisitions also added a substantial load to the balance sheet. Though revenues were up by 16% for the quarter, organic growth was only 6%. The balance growth came from the acquisitions. Segment wise also there were some hits and misses. Container handling segment saw growth of 77%, crane by 16%. Material handling as well as equipment distributions saw a degrowth. The company also impressed with its performance on the gross margin side as EBITDA as well as operating profits improved by 50%.
Though the company posted good quarter results, condition of the U.S. markets is worrisome. There was a substantial decline in order backlog. Things have improved since the closing. Investors need to see some more positives from the company.
