30.10.2024

Decent nine months for Genie

Terex has published its third quarter results. While the company as a whole was flat, the AWP/Genie business - posted reasonable revenue growth while profits slipped back having risen sharply in the same period last year. The Crane division is now lost in the Material Processing business making it impractical to cover.

AWP /Genie

YTD

Revenues for the nine months to the end of September increased 9.5 percent to $2.42 billion.
Operating profit for the period improved almost five percent to $324 million, having more than doubled in the same period last year.

Third Quarter

Revenues in the third quarter increased just 2.5 percent to $769 million, however, order intake for the period declined 29 percent to $1.87 billion, leaving the order book/backlog at the end of September more than 50 percent lower than at this point last year at $1.24 billion.
Operating profit for the quarter declined just over 10 percent to $83 million, have risen sharply in the same quarter last year. The cause was put down to an unfavourable product mix and higher freight costs.

Terex Group YTD

Terex as a whole saw revenues slip just over one percent for the nine months to $3.89 billion, while pre-tax profits slumped 13.5 percent to $410 million, following substantial growth last year. Net debt at the end of September was $276 million, a 22.5 percent reduction compared to this time last year.

Full year forecasts: Terex has tweaked its full year group revenues forecast to $5.15 billion, with Genie/AWP expected to have full year revenues of $3 billion which would be around three percent higher than for 2023.

Chief financial officer Julie Beck said: "Our third quarter results reflect lower than expected volume in the quarter. We continue to take action to reduce costs and align production with demand. I am very pleased that our future financial results will enjoy the accretive addition of ESG (Environmental Solutions Group, reducing our cyclicality going forward. I am also pleased with the results of our ESG acquisition-related funding actions. We maintain a strong and agile balance sheet that will continue to enable us to fund strategic growth initiatives and return capital to shareholders."

Vertikal Comment

This might look like a bit of a lacklustre set of numbers from Genie, but it has to be remembered that the comparisons made are with a very strong set of numbers this time last year. The most worrying factor however is the quarterly order intake trends, although Genie’s results are much the same as most other manufacturers we report on. We expect JLG to report similar results this afternoon for example.
It can, perhaps be put down to the current economic and political uncertainties along with anticipated interest rate reductions which might ease as we go into the new year.