Terex AWP still seeing “healthy” North American demand

Terex Corp’s aerial work platform division posted a 6.9% increase in second quarter revenues to US$882 million, driven by continued “healthy demand” in North America.

The Genie backlog reduced significantly in the quarter to $1.82 billion compared to $2.4 billion in the previous quarter and from $2.8 billion in the same period in 2023.

A Genie boom featuring its offroad TraX system. (Photo: Genie)

The backlog has fallen from the peaks of $2.8-$3.0 billion in 2022 and early 2023, but remains significantly higher than the pre-Covid levels of around $700 million.

Operating profit for the AWP division was $133.8 million, almost identical to the same quarter in 2023, although the profit margin was down from 16.2% to 15.2% of net sales, impacted by “start-up inefficiencies” relating to the new production facility in Monterrey, Mexico.

The rate of revenue growth in its North American business has slowed since the first quarter of the year. As a group - including the materials processing division - revenues for the first half of the year were up 10%, compared to the more modest 5% increase for the second quarter.

In contrast, the western European market remained soft, and saw a group-wide revenue decrease of 14% for the first half of the year and a 12% fall in the second quarter. There were also half-year falls of 11% for Asia Pacific and 6% for the rest of the world.

Terex said the AWP division continued to benefit from megatrends such as investment in data centres, electrification of power grids, and US federal investment under the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.

Terex has adjusted upwards its full year outlook for 2024, with AWP division revenues now expected to be in the $3.15-$3.25 billion range, up from the previous outlook of $3.0-3.1 billion.