Genie lifts Terex results
By Chris Sleight19 February 2014
Terex saw a +1.4% increase in revenues to US$ 7.08 billion and a +14% gain in operating profits to US$ 419 million last year thanks to a surge in sales from its aerial work platform (AWP) and telehandler business, Genie. The company’s other business lines generally performed weaker last year than in 2012.
Commenting on the results, Terex chairman & CEO, Ron DeFeo said, “Overall, 2013 was a good year and I am pleased with the improvements and progress underway at Terex. This past year was a tale of two halves, with the second half of the year significantly stronger than the first half. Our performance in the second half was fuelled by the continued strength of our AWP segment and a turnaround in our Materials Handling & Port Solutions segment.”
He added, “Our AWP segment is continuing to benefit from strong North American rental channel demand plus a noticeable pickup in Latin America and European performance.”
Revenues for Terex AWP came in at US$ 2.13 billion last year, a +22% increase on 2013. Operating profit was up +54% to US$ 326 million, for a margin of 12.1%.
Terex’s next largest business, Terex Cranes saw revenues fall -3% to US$ 1.93 billion last year, while operating profits were down -34% to US$ 111 million. Similarly, the company’s US$ 1.7 billion materials handling and port solution business saw a -3% decline in sales last year and it made an operating loss of US$ 42 million, compared to 2012’s profit of US$ 5.6 million.
Revenues were down -5% to US$ 628 million at the company’s materials processing division, which makes crushing and screening equipment Operating profits were down -5% to US$ 72 million. Terex’s construction business saw the steepest fall in revenues last year, with a -14% decline to US$ 820 million. The division made an operating loss of US$ 25 million, but this was less than the US$ 69 million loss of 2012.
The company said it expected revenues to continue to grow this year, with sales for 2014 forecast to come in at between US$ 7.3 billion and US$ 7.7 billion. These figures are for continuing operations and exclude its hauler business, which Volvo agreed to acquire in December.