CMCO - Short-Term Cyclical Pressures Overshadowing Columbus McKinnon's Long-Term Potential
This isn’t the easiest time to be bullish on industrial names, and particularly those companies like Columbus McKinnon (CMCO) that are more heavily skewed to cyclically weaker end-markets likes autos, oil/gas, metal processing, and heavy industry. Management has acknowledged those cyclical pressures with lower guidance, and the shares have fallen a bit since my last update in May.
I’m still bullish on the company’s longer-term potential. Management has made meaningful progress on its restructuring program, including cost reduction, productivity improvement, and portfolio realignment, and the lends credibility to a long-term EBITDA margin target