Better quarter for Genie
Terex has published its full year results which show a fourth quarter improvement for Genie and its Material Processing business.
Genie sales for the full year were 35 percent below that achieved in 2019 at $1.78 billion, with an operating profit of just $500,000, compared to $196.2 million in 2019.
The Terex group, which also includes the Material Processing/Powerscreen business, achieved full year revenues of $3.08 billion, around 29 percent lower than in 2019. Pre-tax profits plunged more than 95 percent to $11 million.
Moving on to the fourth quarter, Genie achieved sales of $412.3 million, just 18 percent below the same period in 2019, while making an operating loss of $1.9 million compared to a profit in the same quarter of 2019 of $4.4 million. Order intake of $753 million was at the same level as the fourth quarter 2019, leaving the backlog up 10 percent on the year at $826 million, the highest it has been since the first quarter of 2019.
Terex as a whole reported quarterly revenues of $786.7 million with a pre-tax profit of $21.8 million, almost 900% above the fourth quarter of 2009. Sadly, Terex no longer provides any indication of crane sales, since the rump of the business - tower and Rough Terrain cranes - was absorbed into the Material Processing division.
Terex chief executive John Garrison said: "Despite the challenges associated with managing through the pandemic, Terex delivered another quarter of improving operating performance. I would like to thank the Terex team members, dealers and suppliers throughout the world who have helped us safely maintain our operations and serve customers. Because of their contributions, Terex entered 2021 well positioned for growth. Terex will continue to deliver to our customers innovative products and solutions that yield superior productivity and return on investment."
“Our entire organisation is focused on delivering margin expansion in 2021 by realising the benefits of our previously announced cost actions along with improved customer demand and production volumes. Renewed optimism and improved customer sentiment will drive customer demand for Terex's products and services. As a result, our expectations are that 2021 sales will be approximately $3.45 billion."
"We are confident that the company is well positioned with its operating strategy to drive improved execution, profitability, innovation and growth in 2021."
While Genie's full year sales results do not make for good reading, the fourth quarter looks very promising and expects to achieve revenues of around $2 billion in 2021, an improvement of around 12.5 percent.
The market is clearly rebounding, but it is also becoming a good deal more competitive, with the Chinese manufacturers making further progress into larger machines, as Genie and others risk being squeezed between JLG, Skyjack and Haulotte. It will be interesting to see how the first quarter looks in comparison with the fourth quarter. Early signs are encouraging.