Manitex agreed to rent and operate CVS Ferrari, manufacturer of reach stackers, in July 2010 after CVS had entered administration. Manitex retained the option to acquire it once the insolvency was complete and CVS creditors had agreed.
A 44% increase in revenues progressed the deal, Manitex said.
Net revenues leaped to $31.7m from $22m last year, including approximately $6m of sales from the currently rented operations of CVS Ferrari.
Gross profit of %6.5m was up $1.3m from the previous year, particularly for Equipment Distribution segment distributing of Terex rough terrain and truck cranes, Fuchs material handlers, Manitex sky cranes and boom trucks, for which sales increased %152.
Skyrocketing boom truck demand in the energy market drove sales, chairman and chief executive officer David Langevim said: “We are encouraged by the performance of our crane operations and particularly the boom truck crane products where demand from domestic and international energy markets has driven not only strong sales, up 45% in the quarter, but also growth in the backlog which, on a consolidated basis, increased 20% from December 31, 2010.”
Net income of $0.4m compared favourably to $0.3m last year, despite including $0.5m marketing expenses related to completing distributorships at ConExpo, the tri-annual construction industry event.
Langevin said, “First quarter sales and profits were in line with our expectations and we are particularly encouraged by the improvement in sales and growth in our backlog. Our first quarter expenses included approximately $500,000 of unusually high sales and marketing expenses, equivalent to $.04 per share, related to the ConExpo convention which is held once every three years and from which we believe we obtained numerous market opportunities as well as completing two very important distribution agreements for our Manitex business.”
Second quarter sales are expected to increase along with the 20% backlog, Manitex said.
