25.10.2006

Genie sales jump 45 percent

Revenues for Terex aerial work platforms, largely Genie, jumped by over 45 percent for the first nine months of 2006, to $1.56 billion.

Gross margins leapt by almost 94 percent to $401 million, rising from 19 percent of sales in 2005 to 25.5 percent in 2006.

SG&A expense rose from 6.9 to 7.1 percent of sales leaving a profit before tax and interest of $289 million, more than double that of 2005. Or over 18 percent of sales, compared to 12 percent in 2005.

Profitability has been enhanced by higher prices and higher volumes

The company’s backlog continues to increase almost touching $400 million at the end of the period, over 90 percent higher than a year ago.

“Our third quarter results continue to reflect the strong end markets we compete in and the hard work our team members are doing to improve our overall operation,”

said Bob Wilkerson, Terex executive vice president.

“Our net sales were up over 40% compared to the third quarter of 2005, and the strength we are seeing in our various end-markets indicates that we can expect continued good performance as we enter into the 2007 order season. Our international business is continuing to become a more significant component of our sales and profitability, with over one-third of our revenue coming from these markets. Our telehandler product line posted another quarter of growth and profitability, with revenue up modestly versus third quarter 2005 results. The growth rate for telehandlers decreased from what we experienced in the second quarter of this year due to the normal seasonal slowdown.”

Tim Ford, newly named president-Terex Aerial Work Platforms, added, “It is important to remember that most of our business is tied to non-residential construction, and this reinforces our confidence about prospects for the upcoming few years. Since joining the Company, I am impressed with Terex’s commitment to continuous improvement, and despite our successes today, we will work to improve our manufacturing processes to better ensure our ability to meet accelerating customer demand. We feel well positioned to exceed our 2006 performance in 2007.”