01.05.2018

Strong start for Genie

Genie/Terex AWP, has reported a 35 percent increase in first quarter revenues to $638.9, driven by strong growth in both North America and Western Europe.

The backlog/order book at the end of March was $891 million, 43 percent up on the same period past year. Meanwhile operating profits almost tripled to $60.1 million.

Genie president Matt Fearon said: “I am pleased to see the global aerial work platform markets remain healthy and strong. The teams have done an excellent job of responding to customer needs and it is reflected in our first quarter results. We see this momentum carrying through 2018, despite some of the recent headwinds facing the industry. We’re continuing our emphasis on innovative new products and using our global teams to meet rising demand.”

Terex as a whole saw revenues climb almost 26 percent to $1.26 billion, while pre-tax profits came in at $59 million compared to a loss last year of $88.6 million."

Terex chief executive John Garrison added: “Terex significantly improved its first quarter earnings per share compared to last year. This strong financial performance reflects the improvements made to our operations and capital structure, and broad-based improvements in our global markets.”

“Aerial Work Platforms and Materials Processing are off to a great start. Our Cranes business improved compared to the prior year, but performed below our expectations in the quarter.”

“We continue to invest in our ‘Execute to Win’ business system, which remains focused on enhancing our capabilities in Commercial Excellence, Lifecycle Solutions and Strategic Sourcing. We are seeing benefits from Commercial Excellence in our performance, and expect to start to realise benefits from Strategic Sourcing in the second half of 2018.”

“We remain committed to our Disciplined Capital Allocation Strategy. During the quarter we repurchased approximately five million shares of Terex stock for $205 million through our previously announced programme."

Vertikal Comment

This is a very strong start to the year from Genie, a trend which looks set continue over the next three quarters, as new models and increased production come on line in a growing market.

The company is also making solid progress with its major options and accessories and should now start to see the benefits from the investment it made last year in expanding the sales and service teams. Add this to the efficiency gains in manufacturing and it is not hard to see how sales gains are now falling through to the bottom line.