Terex Cranes profits rise in 2012

Terex Cranes has reported its full year numbers for 2012, showing substantially higher profits on lower revenues.

The company reported revenues three percent lower at $1.49 billion, while operating profits surged more than five-fold to $143.4 million. The backlog/order book at the end of December was nine percent lower than at the end of 2011 at $482.2 million and five percent down on the quarter.

Looking at the fourth quarter sales were down nine percent on the same period last year at $394.9 million, with reduced demand in Western Europe, partially offset by strong demand in North America, Australia and the Middle East. Sales in the Middle East more than doubled in Turkey and Saudi Arabia. Operating profit during the quarter more than tripled to $45.7 million, due to higher prices, lower costs and more service revenue.

Terex Material Handling & Port Solutions saw revenues jump 71 percent to $1.84 billion, while turning last year’s loss of $64.7 million into a profit in 2012 of $134 million. However at this stage comparisons are not particularly meaningful. In the fourth quarter revenues slipped by almost 16 percent to $439.6 million, while the operating loss was slightly higher at $21.9 million, due to higher material costs, as well as $16 million in restructuring charges.

The Terex group as a whole saw full year revenues rise 12.5 percent to $7.3 billion, while pre-tax profits jumped almost 85 percent to $155.6 million.

Terex chief executive Ron Defeo said: “We made significant progress in
2012. Our primary goals were margin improvement, cash generation and the integration of Demag Cranes. We made excellent advancement in these areas and more during the year. We were impacted in the second half of the year by challenging end markets in Europe and Asia but we still meaningfully improved our profitability, generated approximately $554 million of free cash flow, restructured and reduced our debt, and began to realize integration savings as planned.”