02.05.2023

Strong start for Genie

Terex has posted its first quarter results, showing that Genie had a strong first quarter in terms of revenues and profits.

Total revenues for the three months until the end of March increased 24.4 percent to $685.9 million, if foreign exchange factors are excluded, the increase would have been 27 percent.

Order intake fell 10 percent compared with the same quarter last year to $762 million but remained ahead of shipments.

The backlog/order book at the end of March improved four percent compared to this time last year at $2.97 billion - roughly the same as the full year sales forecast for 2023.

Operating profits increased 2.5 fold from $32.5 million last year to $83.1 million this year, reflecting the higher volumes and price increases coming into force.

As a result of the strong first quarter Genie has raised its full year revenue forecast to between $2.7 to $2.8 billion, which would represent an increase of between 10 and 12.5 percent over the full year 2022. The company is also forecasting higher margins and thus, we assume higher operating profits.

Terex as a whole saw revenues increase more than 23 percent to $1.24 billion, while pre-tax profits more than doubled to $133.2 million. Net debt at the end of the quarter was $522.8 million, up almost 11 percent on the year.

Chief executive John Garrison said: “We entered 2023 with significant momentum as we continued to successfully execute against our growth strategy amidst elevated macroeconomic volatility and lingering supply chain constraints. I would like to thank our team members for their dedication to our Zero Harm safety culture and their efforts in serving our customers and dealers. We delivered strong first quarter results, with sales growing 23%. We are raising our full year EPS outlook as a result of this impressive performance, strong demand for our products and a healthy backlog of $4.1 billion."

"We also continued to invest in new technologies and products across our business and are proud of our recent innovations that support sustainability and help reduce GHG emissions with electric and hybrid options for our customers. During the quarter we showcased our expanded portfolio of products and solutions at various trade shows, highlighting how we help our customers operate their equipment safely and profitably, while also supporting their sustainability goals and lowering their total cost of ownership."

Vertikal Comment

This is an excellent set of numbers from Genie and Terex as a whole, with business remaining buoyant and increasingly profitable, driven largely by fleet updates and replacements combined with price increases. The growth trends and outlook remain very positive, in spite of additional competition from Chinese manufacturers and long lead times.

Sadly, we are unable to see the Cranes results anymore as there are lost within the Materials Processing division.
Another very positive set of results.