11.02.2022

Strong finish for Genie

Terex has published its full year results which show a strong fourth quarter for Genie.

The Terex AWP division, which includes Genie and Terex Utilities, achieved full year revenues of $2.18 billion a 22 percent increase over 2020, resulting in an operating profit of $152.1 million compared to just $500,000 for 2020. Order intake for the year was $3.61 billion, leaving a backlog/order book at the end of December of $1.96 billion, compared to $826 million a year earlier.

Looking at the fourth quarter, sales were 30 percent higher than a year earlier at $534.4 million, while order intake was $922 million, and operating profit came in at $25.4 million compared to a loss last year of $1.9 million.

The sales outlook for Genie/AWP in 2022 is $2.3 to $2.4 billion, an increase of up to 10 percent, based on the assumption that supply chain issues will restrain further growth, however the company does expect margins to improve.

Moving on to Terex as whole - which is made up of the Material Processing/Powerscreen including Terex cranes division as well as the AWP business - total revenues for the year were $3.9 billion, up 26.5 percent on the year. Pre-tax profits came in at $263.8 million compared to just $11 million in 2020.
Terex is forecasting group revenues to improve between five to 10 percent to $4.3 million.

Vertikal Comment

This is another excellent result from Genie and an indicator of how strong the market is. Sadly supply constraints prevented the company from achieving an even stronger fourth quarter, while longer lead times appears to be providing competitors such as Dingli, LGMG and Sinoboom with a strong foothold in key western markets as they take up some of the slack. And that will not go away when supply issues settle next year.

Terex is taking steps to alleviate the supply issues, including increasing production in China and opening a new plant in Monterrey, Mexico to build telehandlers, initially alongside its plants in Oklahoma City and Umbertide, Italy, although the Oklahoma plant is scheduled to close this year.

Demand appears to be as strong as ever which could see Genie sales increase substantially more than forecast in 2022, but that will very much depend on whether the company can manage to get more out of its supply chain, while also managing some eye watering price increases from component and material suppliers.

All said and done though, this is strong result with a positive outlook for 2022.