08.02.2024

Strong year for Genie

Terex has reported its full year and fourth quarter results.

Terex Cranes' results are buried within the Material Processing division, but Genie - Terex AWP - results are published as one of two divisions within the Terex Group.

Full Year
Genie saw revenues for the 12 months to the end of December improve almost 18 percent to $2.92 billion, while operating profit almost doubled to $371.3 million. The backlog/order book at the end of December was down 8.5 percent on December 2022 at $2.64 billion, but still well above historical levels.

Fourth Quarter
In the fourth quarter Genie revenues slipped almost two percent to $659.9 million, due says the company, to deliveries returning to more normal seasonal patterns. Operating profit however improved 13 percent to $61 million, thanks to price increases coming through, along with cost reduction initiatives, partially offset by costs associated with the ramp-up of its new Monterrey production plant in Mexico, and severance charges.

Terex Group
Terex as a whole saw revenues rise 16.5 percent for the year to $5.15 billion, with a pre-tax profit of $579.7 million, a jump of 58 percent on 2022.

Terex chief executive Simon Meester said: “After five years in the organisation, I am honoured, humbled and excited to be Terex's next CEO. Terex is in a very good place, and I look forward to a bright future. We are pleased by our strong 2023 performance, and believe Terex is well-positioned to continue to deliver value to its customers and shareholders, with strong demand for its products and favourable megatrends for the long term. Our annual results demonstrate significant improvement over the prior year and highlight our ability to successfully manage cost inflation and supply chain challenges. I would like to thank our team members for their hard work and resilience to consistently deliver value for our customers and shareholders."

"As we begin the new year, we again expect to deliver strong results across our diverse product portfolio, driven by our differentiated offerings, continued focus on efficiency and favourable end markets. We do anticipate some headwinds from European markets as well as lingering, yet slowly improving supply chain disruptions.”

Vertikal Comment

This is a decent set of numbers from Genie for the full year, particularly in terms of profitability, which has bounced back to more normal levels. Although fourth quarter sales slipped back a little, the company still has a very strong order book equating to almost a year's delivery, almost guaranteeing a decent year in 2024, but also possibly impacting short term order intake.

The company is seeing a pick-up in sales of its medium to large boom lifts in Europe, while North American sales remain strong, providing stability.

All said and done an encouraging result for the both the company and the industry.