24.04.2013

Genie up 21%

Terex AWP/Genie has reported strong growth in first quarter revenues with a large jump in profits.

First quarter revenues increased over 21 percent to $509.1 million, while operating profits jumped almost 85 percent to $72.4 million.

The backlog at the end of March was $577.3 million, 10 percent higher than at this time last year and up 13 percent on the end of December.

Terex as a whole saw revenues slip just over five percent to $1.72 billion, while pre-tax profits improved 14 percent to $34.4 million.

Chief executive Ron DeFeo said: “Our business performance was mixed in the first quarter. We are encouraged by the performance of our Aerial Work Platform business, which continues to reflect the strong end-market dynamics of the rental channel, particularly in North America. Our Cranes and Materials Processing businesses also positively contributed to our results and performed generally as expected. However, we have seen significant global revenue shortfalls in our Material Handling Port Services business, with particular weakness in Europe and India. Our Construction business is also reflecting the challenges of a less certain customer base in Europe.”

“As a result, we are initiating additional actions in the second quarter to further adjust the cost structure of the MHPS and Construction organisations to better reflect the reduced demand for certain of their products. We anticipate that we will be incurring restructuring and related charges of approximately $30-$50 million in the MHPS segment in the second quarter, and expect to realise a similar amount in savings over the next 12 to 24 months.”

“Terex remains focused on improving profit through organic means, integrating the businesses more thoroughly, and generating consistent free cash flow. We reiterate our annual outlook of earnings per share to be between $2.40 and $2.70 per share, on net sales of between $7.9 billion and $8.3 billion.”

Vertikal Comment

Another solid set of numbers from Genie gets the business off to a good start, following a slightly shaky fourth quarter, when business looked as if it might be heading for a slowdown.

With optimism returning and a highly positive Bauma last week, it looks as though Genie is set for an excellent first half and even better full year.