Columbus McKinnon up as customer sees better sales

Columbus McKinnon stock rises after an industrial distributor customer sees improving demand

• On 1:54 pm EDT, Friday September 4, 2009

NEW YORK (AP) -- Shares of crane maker Columbus McKinnon Corp. rose Friday after an analyst said a customer who distributes Columbus products is seeing evidence of improving sales.

CL King analyst Gary Farber said August sales of industrial distributor Fastenal Co. fell -- but by a smaller percentage than the previous month's decline.

Further, Fastenal's average daily sales improved last month to $7.7 million from July's $7.3 million.

Farber also said about 80 percent of the Amherst, N.Y.-based Columbus McKinnon's products are sold through industrial distributors like Fastenal.

"We believe Columbus McKinnon has strong market positions and an industrial recovery has the potential for significant earnings growth," said the analyst, who reiterated his "neutral" rating on the stock.

He said Columbus McKinnon's shares could rise if industrial capacity utilization climbs, customers like Fastenal issue positive commentary and "ahead-of-expectation margin trends, as we believe that with a cyclical upturn combined with its ongoing cost reduction Columbus McKinnon could produce meaningful operating leverage."

In afternoon trading, the stock rose 51 cents, or 4.1 percent, to $13.03.