Revenues at Terex Corp’s aerial work platform division fell by 17.5% to $379 million in the final quarter of the year to 31 December with operating profit down more than half to US$18.2 million.
The fall was the result of lower sales to rental companies in North America, while sales to Western Europe were stable. Terex expects the AWP division to see a further 12% drop in revenues in 2017. The North American rental industry is at a low point in the replacement cycle, following several years of very high spending.
Full year sales for the Terex AWP division were down 12% to $1.98 billion, with operating profits 34% lower at $177.4 million. The division’s backlog at the end of 2016 stood at $506 million, down 11% year-on-year.
Overall, Terex Corp reported an 11.5% fall in revenues for the year to $4.44 billion, with operating losses of $193 million, compared to profits of $128 million. Its crane division reported a final quarter fall of 20% in revenues, with an operating loss of $280 million. Terex said it had begun a “major restructuring” of its crane business.
“Our fourth quarter results were in line with our expectations and reflect the challenging global market conditions,” said John L. Garrison, Terex President and CEO.
“We have taken significant steps to better position Terex for the future. We completed the sale of our MHPS business, initiated major restructuring actions within our Cranes segment, and dramatically improved our balance sheet.”
Mr Garrison added; “Looking ahead to 2017, we expect our primary global markets to remain challenging. We anticipate lower fleet replacement demand from North American AWP rental customers”.