27.04.2016

Genie looks more positive

Genie or Terex AWP has reported a marginal improvement in revenues compared to last year, up around half a percent to $520.7 million, while operating profits slipped around 14 percent to $38.1 million. Most of this due to restructuring costs.

Terex group as a whole saw revenues decline around four percent to $1.43 billion, while last year’s pre-tax profit of $10.1 million was converted to a pre-tax loss this year of $61.8 million. A good chunk of this was due to severance and restructuring costs, as well as $8.9 million related to ongoing merger and acquisition activities.

Chief executive John Garrison said: “Our first quarter results were in-line with our expectations. The Material Handling & Port Solutions segment had a challenging quarter, impacted by soft markets. Our Aerial Work Platforms Materials Processing (MP) and Construction segments executed well and delivered results that were consistent with or better than last year, on an adjusted basis.”

Our customers remain cautious in the current global environment. Overall the markets are challenging, but there are pockets of opportunity. Most of our AWP North American rental customers are cautious about their capital requirements, managing time utilisation of their fleet and rental rates. The impact from the oil and gas and resource sector declines continue to constrain global demand for many of our products, Cranes in particular. We remain focused on what we can control and have initiated a broad-based restructuring program in the quarter to reduce our SG&A costs and align production capacity with demand. We maintain our full year guidance and net sales to be about 10 percent lower than 2015.”

Vertikal Comment

The performance and outlook at Genie certainly looks more positive than it did in much of the back half of last year, and while the results are not fantastic they show some stability as the rental market begins to regain confidence and place delayed orders. While the year remains uncertain, this is not too bad a start to the year.