Terex posted fourth quarter net sales of $1,233.1 million, compared to $1,063.6 million in the fourth quarter of 2017, a 15.9-percent increase year over year. For the full year, Terex sales were $5,125 million, compared to $4,363.4 million in 2017, a 17.5-percent hike.
Terex also announced on Friday Feb. 22 an agreement to sell its Demag Mobile Cranes business and a decision to exit its mobile crane product lines manufactured at its Oklahoma City facility. The Demag Mobile Cranes business sale, subject to government regulatory approvals and other customary closing conditions, is expected to close in mid-2019. Terex will continue to manufacture and support several specialized crane products.
As part of these changes, the Terex Utilities business group will join Terex AWP business segment. Both Genie and Terex Utilities focus on providing leading products and services to help their respective customers work safely at height. The Oklahoma City facility will also join Terex AWP and continue to be a major Terex manufacturing center, focusing on telehandlers, aerial re-manufacturing and various products for Materials Processing.
The Terex AWP business segment increased net sales by 19 percent to $536 million in the fourth quarter of 2018 and $2.6 billion for the full year 2018, a 24-percent increase compared to 2017. Terex AWP entered 2019 with a healthy backlog of $868 million, a 14-percent increase compared to the previous year, or $1.1 billion, a 21 percent increase including Terex Utilities.
“Overall, our global team executed well in the fouth quarter, completing a strong year for Terex,” said John Garrison, Terex chairman and CEO. “We continued to implement the Focus, Simplify and Execute to Win elements of our strategy and made significant progress in our Commercial Excellence, Lifecycle Solutions and Strategic Sourcing priority areas. We also continued investing to improve the experiences of our customers and grow our businesses. We will continue to support all of our customers, including those affected by the changes in our Cranes segment, as we execute our strategy to be a high-performing, customer-focused company.”
“Global markets for aerial work platforms are stable at healthy levels and our dedicated, passionate Terex AWP team will continue to meet the growing demand of our customers around the world,” said Matt Fearon, Genie president Terex AWP. “The Genie brand is synonymous with technological leadership and innovation. In 2019, we’re using the ANSI standard change as an opportunity to innovate and add customer value with the Genie XC family of booms that increases platform capacity allowing contractors to safely lift more workers, tools and equipment. These innovations are part of our long-term product development strategy that will drive growth. Our Utilities team will remain focused on delivering best-in-class customer experiences by implementing our manufacturing strategy and executing new product and service development plans.”
Terex’s Cranes division posted $364.5 million in net sales in the fourth quarter, compared to $324.4 million in the same period of 2017, a 12.4-percent increase. It jumped 10.1 percent for the full year from 41,194 million to $1,315 million.
The company’s Materials Processing division increased from $283 million in Q417 to $339.5 million in Q418, a 20-percent hike. For the full year, it totaled $1,256.8 million, compared to $1,072.5 in 2017, a 17.2-percent increase.
“In Q4, the Cranes segment succeeded in overcoming the material supply challenges that impacted our performance earlier in 2018,” said Steve Filipov, president of Terex Cranes. “The sale of the Demag Mobile Cranes business to Tadano Ltd. Is based on strong industrial logic. Bringing these two complementary businesses together will combine Tadano’s 100 years of experience with Demag Mobile Cranes’ nearly two centuries to create innovative lifting solutions. I also want to assure our customers that our parts and services team remains firmly in place and committed to providing them with world-class support for all of their Terex cranes, and will support their Demag cranes through the transition to the new owners.”