Genie sales support Terex in Q3
By Chris Sleight24 October 2013
Sharp growth in sales by Terex’s Aerial Work Platforms division helped the company to revenues of US$ 1.81 billion in the third quarter of the year – almost unchanged from the same period in 2012. Terex made an operating profit of US$ 141 million for the three-month period, a +7% improvement on Q3, 2012. Net profits rose from US$ 30 million to US$ 94 million.
Terex AWP, which makes products under the Genie brand, saw sales rise +22% to US$ 533 million in the third quarter. Operating profits for the division were US$ 81 million, up 40% on a year ago.
The improvements for Terex AWP offset falls for Terex’s cranes and general construction divisions. Sales for Terex cranes in the quarter were down -12% to US$ 453 million, and profits slipped from US$ 52 million a year ago to US$ 29 million.
The construction division meanwhile saw revenues fall -17% to US$ 242 million, and it made a loss of US$ 4 million. Although the operating loss narrowed from the US$ 8 million seen a year ago, Terex Construction was the only one of the company’s divisions not to make an operating profit in the third quarter of 2013.
“We continue to have strong performance from our Aerial Work Platforms (AWP) business and solid execution by our Materials Processing business. As expected, we achieved significantly better performance from our Material Handling & Port Solutions (MHPS) segment compared to the first half of this year. Our Cranes segment continues to experience soft market conditions and our Construction businesses remain challenged,” said Terex chairman and CEO Ron DeFeo.
He continued, “Our businesses that have a significant portion of products dependent on non-residential construction have not recovered as quickly as we had expected. Businesses that are less dependent on non-residential construction, such as our Port Solutions and AWP businesses, are seeing improving business conditions.”