Thursday, 7 November 2013

1 Little Company Giving Caterpillar a Run for Its Money



After Caterpillar's (NYSE: CAT  ) dour third-quarter numbers and outlook, who could have expected a construction equipment company that's a tiny fraction of Caterpillar's size to trump Street estimates and deliver solid top-line growth?

For the second-straight quarter, Manitowoc (NYSE: MTW  ) outperformed the industry leader, and its quarterly performance ranked among the best in the construction equipment space. That should compel every investor to think: What's the secret behind Manitowoc's resilience even in these difficult times? Let's figure out.

Manitowoc's crane sales rose 10% during the third quarter even as Caterpillar's construction equipment sales dropped 7% year over year. Thank Manitowoc's geographic mix for its higher revenue. Manitowoc gets more than half its sales from the North American market, which is a blessing in disguise in present times when key global markets are slowing down. Read more.

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