02.05.2024

Good start for Genie

Terex has released its first quarter results which show that Genie/Terex AWP had a good start to the year in terms of both sales and margins.

Terex AWP /Genie

Revenues for the three months to the end of March $772.7 million, up 12.7 percent on the same quarter last year.
Order intake for the period was down almost 11 percent on the same quarter last year to $2.46 billion, leaving the Order book/backlog almost 17 percent lower at $2.43 billion, but that still equates to almost 10 months of work.

The increase in revenues was driven by higher demand, particularly in North America as well as a production catch up thanks to the improving supply chain, leading to greater manufacturing efficiency, which also impacted the operating margins and profit.

Operating profit for the period increased in line with the revenues, rising 13.9 percent to $107.3 million.

Full year forecast
The company has marginally increased its full year revenue forecasts for the AWP division to between $3.0 and $3.1 billion with a margin or between 13.5 and 13.8%.

Terex Group
Terex as a whole reported a 4.6 percent rise in revenues for the three months to $1.3 billion, while pre-tax profit edged up 2.5 percent to $136.5 million.

Net debt at the end of March was $359 million, a 31 percent reduction on the start of the same quarter last year.

Chief executive Simon Meester said: "Terex delivered excellent first quarter results, achieving sales growth and margin expansion versus the prior year. The Terex team continues to perform at a high level and demonstrate the power of its focused strategy and its proven ability to create value."

"We are raising our full year outlook to reflect our strong first quarter performance, while also prudently planning for continued softness in Europe over the balance of the year. Overall, customer demand remains strong for Terex's differentiated products as evidenced by our robust backlog. In addition, we are advancing our new product initiatives to bolster the company's portfolio of market leading businesses that will continue to benefit from megatrends over the coming years. We are focused on accelerating our profitable growth strategy and are committed to delivering strong performance through the cycle."

Vertikal Comment

This is a thoroughly decent result, especially in terms of shipments/invoicing from both Genie and Terex Utilities making solid gains, while maintaining a strong order intake and order book, especially in comparison to the times before the supply chain crisis. Margins are also looking positive, and gains are flowing through to the bottom line.

There is an interesting comparison to be made here with JLG, which now has revenues almost double those of Genie, but its sales failed to keep up with inflation in the first quarter, while its order intake was less than half that of Genie, but it did post a stronger growth in operating profits, thanks perhaps to its heftier price increases?

Genie looks to be making a strong come back in the market and looks to be in a good position to maintain its current growth momentum throughout the year.