Genie soars amid market opportunities
08 August 2023
Net sales at Terex AWP, which predominantly includes Genie and Terex Utilities, were up 38% to $824.9 million in the second quarter of the division’s financial year, as the company relocates some of its production to Mexico.
The increase was primarily driven by the improving supply chain, higher demand and increased equipment prices, said the company, which were put in place as a result of rising costs of materials and components.
Income from operations was up massively from $46.2 million in last year’s second quarter to $133.6 million in the same period this year, representing a 133.6% increase.
The AWP results reflect group-wide sales in the period of $1.4 billion – an increase of 30.3%. Group income from operations was $209.9 million in the second quarter, up from $103.9 million in the same period in 2022.
Move to Monterrey
Terex Chairman and CEO John L. Garrison said that while the Genie team has been introducing innovative new products there has also been a focus on its new manufacturing facility in Monterrey, Mexico, which is seeing production of some products moved from the former headquarters in Redmond, US and its China facility.
“We continue to see growing evidence of onshoring in North America manufacturing and an increased focus by global players to achieve their sustainability goals.”
In addition, said Garrison, Genie has been, “taking significant cost reduction actions to streamline operations to increase profitability while ensuring the product transfers to our new permanent Monterrey facility remain on track.”
The increasing number of infrastructure-related projects, thanks to the US Government’s Infrastructure Bill, is also a key factor in company developments. “The Utilities team has been helping customers meet rising challenges related to ongoing infrastructure modernization,” commented Garrison, “Which remains critical to driving electrification and reducing carbon emissions.”
“Looking ahead,” Garrison added, “We are increasing our full-year revenue and operating margin guidance ranges for both MP and AWP as a result of their strong performance.”
The previous forecast for Terex AWP in the full financial year was $2,700 - $2,800, with an operating margin of 11.5%. The projection has now been increased to $2,900, or a 13.8% operating margin.