01.05.2018

Terex Cranes up 19%

Terex Cranes has reported first quarter revenues of $314 million, 19 percent up in the same period last year thanks to increased demand for cranes and favourable exchange rates, during the period.

In spite of significantly higher sales, the company still made an operating loss of $9.7 million, although this is an significant improvement on last year's first quarter loss of $31.9 million. The results would have been even better had they not been negatively impacted by manufacturing disruptions caused by supply chain challenges. Terex says that it is working with suppliers to address the issues.

The backlog/order book at the end of March was $643 million, 58 percent higher than at this time last year.

Terex Crane’s president Steve Filipov said: “Global crane markets were fairly stable with pockets of growth as expected. We executed well in tower cranes and utility equipment - Terex Utilities - and continued to roll out exciting new products including our 300 tonne Demag AC 300-6 All Terrain crane and Terex CTT 472-20 flat top tower crane. Our global Cranes team is focused on operational execution and delivering on our commitments to our customers.”

Terex group 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 group chief executive John Garrison added: “Overall, we had a strong start to the year. Our backlog/order book is up significantly in every segment and our global markets are improving. We will continue to execute our Transformation programme by simplifying the company and building capabilities designed to enable us to serve our customers better and faster than the competition.”

Vertikal Comment

While the company still made a loss in the quarter it was smaller than last year, and the upward momentum is certainly picking up pace as Demag in particular regains its place in the global All Terrain and heavy lattice crane market.

Since Steve Filipov rejoined the business and the German products were rebranded as Demag, it has made strong progress and the vibes are good for a decent year in 2018, and possibly - if all goes well – a great year in 2019.