Manitex Liftking, a unit of
Manitex International, Inc.
), has secured a $37 million contract from US Military for a
period of five years to supply specialized material handling
equipment. The contract will help the US Navy to meet the unique
requirements of militaries around the world.
As per the contract, Manitex will supply the US Navy with highly
specialized and configured rough terrain straight mast forklift
equipment. The design and build contract will initially deliver
multiple units valued at around $22 million.
The deal also includes the option for an additional $15
million worth of follow-on orders. Initial orders under the
contract with a value of about $5 million have been received and
are slated for completion in the second half of 2014.
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Under this contract, Liftking will design, test and supply two
equipment variants, with five and ten ton capacity, that are air
transportable. Their unique feature also includes the absorption
of up to 50G simulated shockwave forces, which will support the
US Navy providing a solution to their challenging global
operational activities. These new products will also provide
additional depth to the US military portfolio and extend the
scope of product offering to global military operations.
Manitex's first-quarter 2013 earnings per share increased 45.5%
on a year-over-year basis to 16 cents a share and exceeded the
Zacks Consensus Estimate of 13 cents. Sales for the company also
increased 39% year over year to $59.5 million in the quarter,
ahead of the Zacks Consensus Estimate of $56 million. The
year-over-year growth was led by an increase in demand to drive
production at several facilities.
Manitex retains its previous guidance with expectations for a
modest economic improvement in the U.S. and weakness in Europe.
The growth will be driven by adding products to its portfolio and
acquisitions that fit strategically with the company. This will
contribute materially to its bottom-line performance.
The company expects to generate 50% of its sales from the energy
area and the balance from general commercial markets. Manitex
remains committed to introducing ground breaking products with
the introduction of the Manitex TC 700 crane, which will provide
significant sales upside.
Bridgeview, Ill.-based Manitex International is a leading
provider of engineered lifting solutions including boom truck and
rough terrain cranes, rough terrain forklifts, special mission
oriented vehicles, container handling equipment and specialized
Manitex currently retains a Zacks Rank #3 (Hold). Other stocks in
the same industry with favorable Zacks Ranks are
Tri-Tech Holding, Inc.
Altra Holdings, Inc.
). While Graco and Tri-Tech carry a Zacks Rank #1 (Strong Buy),
Altra Holdings holds a Zacks Rank #2 (Buy).