29.07.2006

Terex Aerial Work Platforms

Terex Aerial Work Platforms, the Genie aerial lift and telescopic handler business has reported first half 2006 revenues of over a $1.04 billion, an increase of almost 50 percent on the same period last year.

The results now include all Terex telehandler sales and some light equipment. However Aerial lifts dominate the numbers, possibly keeping Genie marginally ahead of JLG as the world’s largest producer of aerial work platforms.

Gross margins improved substantially to over 25 percent of sales, or $265 million. In the same period last year margins had dipped to 18.3 percent. The company says that the improvement came from both price increases and volume driven cost reductions.

Operating income in the first half jumped by 235 percent to $190 million, an amazing 18% of sales. While the division’s backlog increased by 25 percent to $544 million, over three months worth of production.

“The second quarter results were simply outstanding” said Bob Wilkerson, president-Terex Aerial Work Platforms. “Our sales were up almost 50 percent for the second quarter in a row, and our backlog was up approximately 25 percent when compared to the second quarter of 2005".

"Our business continues to become more global than in the past, with approximately one-third of our revenue now coming from international markets, such as Europe and Australia. In addition to the excellent financial performance of our aerial product lines, our telehandler product line posted another strong quarter of growth and profitability. We will continue to invest resources to improve our light construction and trailer businesses in an effort to strengthen their contribution to this segment’s results.”

“While we remain cautious about various dynamics that can weigh negatively on our business, the overall strength of the international market and the fact that most of our business is tied to non-residential construction reinforces our confidence about prospects for the upcoming few years. This quarter’s results demonstrate our ability to perform and meet current demand, and we are prepared to meet the growing global demand for our products.”

Terex group results

Terex Group revenues climbed by almost 20 percent to $3.8 billion, clearly driven by the cranes and access divisions. Gross margins were $722 million, an increase of 48 percent on 2005 in percentage terms margins climbed from 15.2 percent to 18.9 percent.

Net Income after tax was up by almost 95 percent to $198 million.

Ron DeFeo said, “We are raising our outlook for 2006 from our previous guidance provided in May. We now expect sales to be up 17 to 22 percent from our 2005 results to a range of $7.5 to $7.8 billion”.

“We are raising our earnings per share expectations for the year to $3.55 to $3.75 from our previous indication of $3.20 to $3.40 per share, excluding costs related to the early extinguishment of the Company’s 10-3/8 percent senior subordinated notes. The increase in profit expectations reflects continued favorable economic conditions and the internal progress we are making on improving costs, market development, and price realisation.”