Strong quarter for Genie
Terex has issued its first half results which show a strong second quarter bounce back for both of its business sectors.
Genie revenues for the six months to the end of June were $1.07 billion, an improvement of 16 percent over the first half of 2020. Operating profit was $91.8 million, compared to a loss for the same period last year of $10.9 million. The backlog/order book at the end of June was $1.44 billion, compared to $509 million last year.
Looking at the second quarter sales were 43.5 percent higher than in the same period last year at $595.2 million, while an operating profit of $65.2 million compared to a loss of $5 million last year.
Cranes are no longer reported separately but are included in the Material Processing business, which saw revenues for the six months jump 41 percent to $819 million with an operating profit of $121.2 million - two and half times last year’s results. In the second quarter sales leapt 67 percent to $440 million, while operating profits tripled to $72.1 million.
Terex as a whole posted half year revenues of $1.9 billion, an increase of 25 percent on last year. Pre-tax profits came in at $134.1 million, compared to a $31.7 million loss last year.
Terex chief executive John Garrison said: "During the second quarter, our global team members' relentless focus on safety and disciplined execution of our strategy led to robust bookings, revenue growth and margin expansion in both of our business segments. Aerial Work Platforms execution resulted in strong operating margins. Materials Processing had another excellent quarter with outstanding performance across its portfolio of businesses."
"Given the strong first half performance and significantly improved end markets, we have raised our full year guidance, which takes into consideration current supply chain conditions. We increased our full year sales outlook to approximately $3.9 billion.”
"We are well-positioned as we enter the second half of 2021, with strong backlog and continued investment in the business, while maintaining cost discipline and generating sustained, positive free cash flow. These actions drive our disciplined capital allocation strategy and positions us to deliver strong shareholder returns. I am also pleased that Simon Meester was announced earlier this week as president of Genie reflecting our confidence in Simon to lead the Genie business."
Chief financial officer John Sheehan added: "Aggressive working capital management drove $101 million of free cash flow in the quarter and $141 million of free cash flow year to date. Our strong financial results and liquidity enabled us to prepay $83 million of term loans and continue to reduce leverage. In addition, we will continue to use our liquidity to fund future growth opportunities."
This is a very positive result from Genie, which according to the release statement saw growth coming from both domestic and international markets, while the JLG results earlier today indicated that most of its growth came from North America. Genie is in a good place now, at least on paper, with its strong and growing backlog, although it has made “aggressive cuts” in some areas of the business. Whether that is now the best thing for the business, or whether it can be easily reversed as the company shifts back to normal is another thing. Another very encouraging set of numbers.