Terex bounces back in first half
By Euan Youdale30 July 2021
Terex Corporation has announced a strong first half year with group sales up 50% in the second quarter, over the same period last year, and its Terex AWP and material Processing (MP) divisions showing significant recovery.
In the group’s latest financial results, covering the six months to 31 June, the Terex AWP segment, which includes Genie and Terex Utilities, demonstrated strong growth. Its second quarter sales rose by 44% to $595.2 million, up from $413.2 million in the same period last year. For the first half year, the division achieved sales of $1,071.0 million, representing a 15% increase from $925.6 million
The Materials Processing (MP) division saw impressive second quarter 2021 sales, gaining 67% over the first quarter in 2020, amounting to $440.8 million. In the full first half the division’s sales rose 41% to $819 million from $579.2 million in the same period last year.
“During the second quarter, our global team members’ relentless focus on safety and disciplined execution of our strategy led to robust bookings, revenue growth and margin expansion in both of our business segments,” said Terex chairman and CEO John L Garrison.
Terex AWP’s income from sales rose significantly in the second quarter to $65.2, up from a loss of $5million in the same period last year. The first half year also saw impressive gains of to $91.8 million, from -10.9% in the same quarter in 2020.
The MP segment experienced oustanding income growth of 208% in the second quarter at $72.1 and reported a first half income from operations of $91.8 million, up from a loss of -$10.9 million in the first of 2020.
In early July, MP completed a bolt-on acquisition with the purchase of MDS International (MDS), a manufacturer of heavy-duty aggregate and recycling trommels, apron feeders and conveyor systems. Kieran Hegarty, president of MP, commented, “The addition of MDS to our portfolio of businesses will bolster our growth and improve our product offerings. MDS is on an excellent growth trajectory, and its products complement our crushing and screening business.”
Across the group, sales were up 50% to $1,038.7 million, from $690.5 in the second quarter, compared to the corresponding period last year, with operating income in the period sitting at $122.5 million, up from $7.4 million in 2020.
Half year group sales were up 25% to $1,902.9 million, while income from operations stood at $184 million, up from just $0.3 million in the first half of 2020.
Based on the positive half year and significantly improved markets, Garrison said the group has raised its full year 2021 sales guidance to approximately $3.9 billion.
Garrison concluded, “We are well positioned as we enter the second half of 2021, with strong backlog and continued investment in the business, while maintaining cost discipline and generating sustained, positive free cash flow. These actions drive our disciplined capital allocation strategy and positions us to deliver strong shareholder returns.”