Resurgent markets benefit Terex sales
By Euan Youdale11 February 2022
Terex Corporation experienced a much brighter year in 2021, compared to 2020, thanks to a resurging market.
The AWP and Materials Processing (MP) segments both saw upswings in the year ending 31 December 2021. As the company said, the MP division demonstrated a strong performance with operating margins of 13.8% in the fourth quarter of the year, while AWP’s fourth quarter results reflected strong global customer demand.
Net sales across the group stood at $990.1 million in the fourth quarter, up from $786.1 million in the same period of 2020, while full year sales for the group were $3.887 billion, compared to $3.076 billion in the year before.
Income from operations for the quarter was $69.8, compared to $31.6 in the quarter, a considerable rise, while full year income amounted to $328 in 2021, compared to $68.4 in 2020.
For the AWP segment, which includes Genie and Terex Utilities, there was another significant upswing with fourth quarter net sales of $534.4 million, up from $412.3 in the same quarter in the previous financial year. Full year sales for the division were $2.179 billion, up from $1.783 in 2020.
AWP income from operations for the fourth quarter showed a return to profit of $25.4 million, compared to a loss of $1.9 million in the final quarter of 2020, and for the full year, income was $152.1 million, up from a flat $0.5 million in the previous year.
Material processing growth
For MP, net sales for the fourth quarter 2021 were $454.1, up from $366.3 in the final quarter of 2020. For the full year, sales stood at $1.692 billion, compared to $1.257 billion in 2021.
“I am proud of the continued resilience demonstrated by Terex team members to manage through a challenging operating environment,” said chairman and CEO John L. Garrison. “We delivered significantly improved 2021 results and made progress on our Execute, Innovate and Grow strategy,”
Garrison continued, “The entire organisation remains focused on overcoming supply disruptions to increase production and deliver for our customers. As a result, we expect 2022 sales will be $4.1 to $4.3 billion. We are confident that Terex is well positioned to drive innovation and growth in 2022.”
Julie Beck, senior vice president and CFO, said the company was able to generate $125 million of free cash flow in 2021. “Our strong balance sheet and expected 2022 free cash flow generation of $175 to $225 million allows us to fund growth investments, such as our new Genie Mexico facility and digitalisation initiatives.”