Terex Corp. reported $1,120.5 million in third quarter 2022 net sales compared to $993.8 million in the third quarter of 2021, a 12.8-percent year over year increase, primarily the result of improved price realization necessary to mitigate rising costs across all segments and healthy demand for Terex products. The increase was partially offset by a 7.9 percent negative impact from changes in foreign exchange rates.
Total backlog grew 33 percent year over year to $3.9 million. Income from operations was $120.8 million compared to $74.2 million a year ago, a 62.8-percent increase. Return on invested capital of 19.0 percent significantly exceeded Terex’s cost of capital as it continued to invest in the business and return cash to shareholders through dividends and share repurchases.
"We are pleased with our strong financial performance in the quarter as a result of continued progress on our strategy and the relentless focus of our team members to deliver our products and solutions to customers and dealers," said Terex chairman and CEO John Garrison Jr. "We grew sales 21 percent when adjusting for FX rates and ended the quarter with total backlog of $3.9 billion, an increase of 33 percent year-over-year and a clear indication of the strength of demand from our customers.
"We remain focused on executing our multi-year growth plan and continue to invest in new technologies and products across our businesses. In our Materials Processing segment, we expanded the capabilities of our growing environmental business with the recent acquisition of ZenRobotics, allowing us to deploy robot technologies that pick, sort and recycle waste material. In addition, our Genie team continued to execute their product electrification plans with the introduction of a new lithium-ion battery option for the line of GS E-Drive slab scissor lifts. We are proud of our execution this quarter despite continued global supply chain disruptions, significant inflationary pressures and foreign exchange rate volatility. Following the strong performance in the third quarter, we are raising our full year EPS outlook to a range of $4.00 to $4.20. Our globally recognized brands, industry-leading and innovative new products, backlog, and strong balance sheet position us well to successfully navigate the near-term macro challenges and deliver long-term value."
Segments are up
In the Materials Processing segment, net sales were $457.9 million for the third quarter of 2022, up 9.4 percent or $39.2 million year over year, primarily because of price realization necessary to mitigate rising costs and healthy product demand. Excluding the impact of foreign exchange rates of about $43 million, net sales increased 19.6 percent year over year.
In the Aerial Work Platforms segment, net sales for Genie products totaled $662.6 million for the third quarter of 2022, a 15.7 percent or $90.1 million year-over-year jump. Excluding the $35 million impact of foreign exchange rates, net sales increased 21.9 percent, primarily because of price realization necessary to mitigate rising costs and higher demand driven by fleet replacement and end-market growth for aerial equipment. Utility product growth was strong in North America.
For the first nine months of 2022, Terex posted net sales of $3,200.1 million compared to $2,896.7 million in the first nine months of 2021, a 10.5-percent year-over-year leap.
Terex Corp. is headquartered in Westport, Conn.