29.10.2021

Strong quarter for Terex/Genie

Terex has reported its third quarter results, which show a strong pick up in orders, sales and profits.

Starting with the year to date numbers, Genie revenues improved 20 percent to $1.644 billion, with an operating profit of $126.7 million, compared to just $2.4 million for the same period last year. The backlog/order book at the end of September was $1.705 billion, three and a half times the $478 million it was a year ago.

Looking at the third quarter, sales jumped 28.7 percent to $572.5 million, while operating profits increased from $13.3 million to $34.9 million.

Terex as a whole reported revenues of $2.9 billion for the nine months with a pre-tax profit of $195.5 million compared to a loss this time last year of $10.8 million. The Terex Crane business is sadly now buried within the Material Processing division, which also posted strong quarter and year to date numbers. Net debt has been halved in the past 12 months to $335 million.

Chief executive John Garrison said: "End market demand remains exceptionally strong demonstrated by significant year over year growth in orders, backlog and a robust book to bill ratio. Our ability to meet this high level of demand is constrained by supply chain, labour, freight and logistics challenges. We are driving our suppliers on availability and cost to reduce the impact on our customers and distributors. I am pleased how our team members have worked tirelessly to help overcome these external headwinds."

"Our commercial excellence initiatives are demonstrating results, as pricing actions continue to partially offset accelerating cost inflation. Price increases are being clearly communicated with our customers and distributors and we will be implementing further price increases."

"We will close out full year 2021 with strong backlog, continued cost discipline, and positive free cash flow. We remain confident in our team's ability to manage through current market conditions and emerge with stronger customer and supplier relationships. We will continue our investments to enable longer-term growth."

Chief financial officer John Sheehan added: "Aggressive working capital management drove $43 million of free cash flow in the quarter and $183 million of free cash flow year to date. Our strong financial results and liquidity enabled us to continue to reduce leverage by prepaying an additional $150 million of term loans in October. Debt prepayments of $429 million year to date have reduced leverage, strengthened our balance sheet, and positioned the Company for growth."

Vertikal Comment

A strong performance form Genie, which has seen sales pick up across all of its regions, however the supply chain issues affecting all manufacturers are holding back further growth as is evidenced by the growth in the backlog, but also by the fact that the company is reducing its full year forecast for Genie by $45 million from $2.175 to $2.130 billion .