24.10.2013

Genie up over 20%

Genie/ Terex AWP has reported nine month revenues up over 20 percent, with a strong improvement in profits, but with fall in the order backlog.

Total revenues for the nine months to September were $1.65 billion, almost 21 percent higher than in the same period last year. Operating income for the period was $254 million, 45 percent up on last year. The order book at the end of the period was $311.9 million, 35 percent higher than last year, but down 37 percent on the quarter.

Looking at the third quarter, revenues were $533 million, almost 22 percent higher than last year, while operating profits jumped almost 40 percent to $80.7 million.

Looking at the Terex group as a while, nine months revenues were $5.4 billion – 3.5 percent lower than last year. Pre-tax profits were flat at $191.7 million. In the third quarter revenues were roughly flat at $1.81 million, while pre-tax profits almost tripled to $109.4 million- most of the difference relates to a $50 million charge last year for early retirement of its debt.

Chief executive Ron DeFeo said: “Our third quarter operating results were as we expected but with a better tax rate, the current environment is mixed overall, and remains challenging to predict. We are seeing strength in early-cycle product categories where demand is mostly replacement driven. We continue to have strong performance from our AWP business and solid execution by our Materials Processing business. As expected, we achieved significantly better performance from our Material Handling & Port Solutions segment compared to the first half of this year. Our Cranes segment continues to experience soft market conditions and our Construction businesses remain challenged.”

“Geographically, the global economy is best described as lacking a clear direction. North America remains the most stable market overall. Europe has seen slight improvements in certain products, mostly in our AWP segment, and the Middle East continues to provide growth. However, overall weakness in Europe and Australia have offset the growth we have experienced in other markets.”

“Our operating margins have remained consistent. However, we expected 2013 to be a year of significant sales growth, and this has not occurred. Our businesses that have a significant portion of products dependent on non-residential construction have not recovered as quickly as we had expected. Businesses that are less dependent on non-residential construction, such as our Port Solutions and AWP businesses, are seeing improving business conditions. This, along with our interaction with customers globally, is what provides a level of support that a broad-based recovery is more a matter of when it will happen, not if it will happen.”

Vertikal Comment

Another good quarter from Genie, although the slip in its order book since mid-summer is concerning, although may be more related to the higher shipment levels and seasonal demand. Genie looks set to comfortably exceed $2.2 billion this year. With a substantially improved profitability.