Sales shoot up 74% for Terex AWP in Q1
By Maria Hadlow21 April 2011
Terex AWP's (Aerial Work Platforms) net sales for the first quarter of 2011 increased $161.1 million, (74.7%), to $376.8 million compared to the first quarter of 2010 and backlog has risen a massive 123%.
Terex says that the North American market has continued its recovery, with increased capital expenditures from both large and medium sized rental customers related to fleet replacement while other parts of the world experienced strong growth, especially in Western Europe.
Ron DeFeo Terex chairman and chief executive officer said, "Our Aerial Work Platforms business has seen a substantial increase in demand from the North American rental channel, with backlog up approximately 123% from this time last year and approximately 45% from the end of 2010. We have initiated pricing increases in AWP starting with deliveries scheduled for late in the second quarter of 2011. However, the current operating margin reflects the impact of orders placed early in the recovery without the benefits of the new pricing structure or the benefit of operating efficiencies as we accelerated production to meet the increased demand."
In the first quarter the AWP division made a $6 million profit compared to a $20.3 loss in the same quarter of 2010.
Backlog - defined as the firm orders that are expected to be filled within one year - increased approximately 123% compared to March 31 2010 and 45% compared to December 31 2010. Terex says that driving this increase are improved fleet utilisations, replacement of aging fleets and customer concerns about product availability later in the recovery cycle. Order activity is strong across most models in the boom, scissor and telehandler categories.
As a whole the Terex Corporation increased sales by 34.2% to $1256.2 million in the first quarter. AWP accounts for nearly 30% of these sales and was one of only two divisions to contribute an operating income (the other being the Material Processing Sector).