Terex Revenue Rises 23.3 Percent in First Quarter
Terex Corp. posted $1,235.7 million in revenue in the first quarter of 2023 compared to $1,002.5 million in the first quarter of 2022, a 23.3-percent increase. The increase was primarily driven by higher volumes and demand and improved price realization necessary to mitigate rising costs across all segments. The boost was partially offset by a $42 million negative impact from changes to foreign exchange rates. Net income was $12.1 million compared to $11.7 million in the year-ago quarter. Income from operations was $148 million, up 98 percent year over year.
“We entered 2023 with significant momentum as we continued to successfully execute against our growth strategy amidst elevated macroeconomic volatility and lingering supply chain constraints,” said Terex chairman and CEO John Garrison Jr. “I would like to thank our team members for their dedication to our Zero Harm safety culture and their efforts in serving our customers and dealers. We delivered strong first quarter results, with sales growing 23 percent, operating margin expansion of 460 basis points, and EPS more than doubling over the prior year. We are raising our full-year EPS outlook as a result of this impressive performance, strong demand for our products and a healthy backlog of $4.1 billion.
“We also continued to invest in new technologies and products across our business, and are proud of our recent innovations that support sustainability and help reduce GHG emissions with electric and hybrid options for our customers. During the quarter we showcased our expanded portfolio of products and solutions at various trade shows, highlighting how we help our customers operate their equipment safely and profitably, while also supporting their sustainability goals and lowering their total cost of ownership.”
Income from continuing operations was $109.9 million, or $1.50 per share, compared to $52.3 million, or $0.74 per share, a year ago. EPS was up 116.2 percent year over year.
Aerial Work Platforms
Net sales of AWPs were $685.9 million, a 24.4-percent increase from the first quarter of 2022, driven by higher demand for fleet replacement, end-market growth and price realization necessary to mitigate rising costs. Excluding the impact of foreign exchange rates of approximately $15 million, net sales jumped 27.1 percent year over year.
Income from operations increased to $83.1 million or 12.1 percent of net sales, compared to $32.5 million, or 5.9 percent of net sales a year ago.
Materials Processing
The Materials Processing division reported net sales of $553.8 million, a 22.3-percent increase. Income from operations increased to $85.3 million or 15.4 percent of net sales, compared to $64.5 million, or 14.2 percent of net sales a year ago.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.