27.10.2011

Terex/Genie leaps 59%

Terex AWP/Genie has reported a very strong third quarter with sales up almost 59% and profits almost doubling.

The nine month numbers to the end of September were even more impressive rising by almost 79 percent to $1.31 billion. Meanwhile operating income went from a loss of $8.2 million last year to a profit this year of $60.1 million.

Looking at the third quarter revenues were $448.7 million 58.9 percent higher than a year ago, while last year’s $14 million operating income was almost doubled to $27 million. The company also confirmed that it would be implementing a 4.5 percent price increase as of January.

The AWP order book at the end of September was $550.7 million – 48 percent higher than at the same point in 2010 and 23 percent up on the quarter.

Terex chief executive Ron Defeo said: “We continue to see end-market demand recover in our Aerial Work Platforms business and are optimistic about the rest of the year and 2012 for AWP, as we are having earlier than normal conversations with customers who have indicated a willingness and need to purchase more equipment.

Terex group

Terex as a whole reported total revenues of $4.54 billion for the nine months, 47 percent up on the same period last year. Pre-tax profits for the period were $94 million compared to a loss in the first nine months of 2010 of $200.7 million. The third quarter was similar with sale up almost 67 percent to $1.8 billion, while pre-tax profits were $67.3 million compared to a loss in the same period last year of $51.2 million.

“Overall, our performance continues to improve in terms of net sales and operating profitability, even during this economically uncertain time. We continue to see end-market demand recover in our Aerial Work Platforms business. Cranes saw an improved production execution, allowing us to deliver orders from our backlog of larger mobile cranes and port equipment while margins improved both as a result of higher sales volumes and reduced costs from the restructuring announced earlier this year,” said Defeo.

“We anticipate that our net sales for the year will be in the range of $6.3 to $6.5 billion, including the Material Handling & Port Solutions segment (Demag).”

“Our longer term outlook is for continued growth in many of our key product categories and end markets. While we are mindful of the continuing economic uncertainty, we continue to believe that the overall market conditions support growth led by our AWP business, mainly in North America, and our Port Equipment business globally. As a result of price increases which we will be instituting, as well as cost saving initiatives across our businesses, we anticipate increases in profitability to outpace our growth in net sales.”

Vertikal Comment

This is yet another stellar performance from Genie as it capitalises on the growing investment in fleet renewal by the larger rental companies, while keeping pace with smaller buyers and maintaining its market share in Europe.

The company is well placed to see this upward trend continue well into next year and beyond as it spreads its manufacturing net and starts to introduce new models to both expand and update its current product range.