31.07.2024

Terex has reported its half year results

Terex has reported its results for the six months to the end of June, the crane numbers are buried within the Material Processing division and not accessible, while the Genie - Terex AWP - results are published as one of two divisions within the Terex Group.

Genie

Year to date

Revenues for the six month to the end of June were up 9.5 percent on the same period last year, at $1.65 billion, while Operating profit improved 11.2 percent to $242.1 million. Order intake however, declined 33 percent to $829 million.
The backlogorder book at the end of June was percent on this time last year at $1.82 billion, down 32 percent on the same point in 2023, but remains well above the pre - 2022 levels and long term averages.

Second Quarter
In the second quarter revenues came in 6.9 percent higher at $881.8 million, driven largely by higher demand in North America for both aerial work platforms and telehandlers. Order intake in the quarter was however, only $269 million, compared to $513 million in the same quarter last year.
Operating profit on the other hand was roughly flat at $133.8 million, this due to the additional profit from the increased volumes, was offset by the ramp up costs associated with the new Mexican facility in Monterrey and the gain from the sale of a facility in the second quarter last year.

Full year outlook
Genie has increased its full year expectations/forecasts and now predicts that overall revenues will be within the range of $3.15 to $3.25 billion, compared the original forecast of $3.0 to 3.1 million. This would represent an eight to 11.5 percent increase in full year revenues

Terex Group

Terex as a whole saw revenues roughly flat at $2.67 billion, up 1.4 percent on the first half of 2023. Pre-tax profit however slipped slightly to $310.6 million, a 4.4 percent decline on the first half of 2023. Net debt at the end of June was $346.3 million a reduction of just over 21 percent.

Terex chief executive Simon Meester said: "The Terex team continues to perform at a high level and demonstrated strong execution in the second quarter. The recently announced agreement to purchase Environmental Solutions Group strengthens our portfolio and leverages our operating system to drive sustainable, accelerated long-term growth. ESG will add a non-cyclical, financially accretive, and market-leading business to Terex's portfolio with tangible synergies in the fast-growing waste and recycling end market. The transaction is expected to close in the second half of 2024."

Vertikal Comment

The overall result from Genie is actually not bad, even though parts of it might look less than positive. The most worrying being the order intake and backlog/order book. But the company has sight of July’s order intake and clearly feels confident to not only hold the forecast but actually raise the range above the top end of its previous forecasts. It is also forecasting a decent margin and is making solid progress in a number of areas.

While it is hard to judge as an outsider, I would expect the third quarter to look a good deal more positive in those areas which were not so strong this quarter.