Tags: Manitowoc | boom | building | MTW

Manitowoc Could Boom Again with Building

By    |   Tuesday, 27 Dec 2011 07:34 PM

Revved-up growth is good for The Manitowoc Company (MTW), which makes cranes and food service equipment. The crane market is highly cyclical, though, and the stock last hit a peak of $51 in 2007.

Now, it’s $8. But some analysts figure it could boom again with a building surge, once construction finally restarts.

Cranes accounted for roughly half of the Wisconsin company’s 2010 sales. A large installed base and strong after-market product support are key competitive advantages, note S&P analysts.

On the downside, Manitowoc gets a big chunk of its sales from Europe, along with the Americas. Less than 20 percent of sales are driven by fast-growing Asia.

Manitowoc also sells food service products such as ice cube machines and beverage dispensers. In 2008, it bought global food and equipment maker Enodis, beefing up its warm-side products. But a bidding war drove up the price steeply. The result is more than $2 billion in debt weighing down Manitowoc’s balance sheet.

The company is plowing ahead, though. Third-quarter revenues rose 16 percent to $935.4 million, versus $807.1 million a year ago. Crane sales climbed 20.7 percent, versus 10.2 percent for food service. Increased operational efficiency and new product development were key initiatives, notes Manitowoc CEO Glen Tellock.

Sales spiking

Of the 16 analysts followed by Thomson/First Call, two have strong buy recommendations and six have buys, with eight holds. S&P analysts rate Manitowoc a strong buy, though, citing its good order activity across many lines.

The company reports next on Jan. 30.

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Revved-up growth is good for The Manitowoc Company (MTW), which makes cranes and food service equipment. The crane market is highly cyclical, though, and the stock last hit a peak of $51 in 2007. Now, it s $8. But some analysts figure it could boom again with a building...
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2011-34-27
Tuesday, 27 Dec 2011 07:34 PM
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