Slower market hits Genie sales
07 February 2025
Net sales were 13.2% down in the fourth quarter at Terex鈥檚 Aerial Work Platform (AWP) division, which includes Genie and Terex Utilities, as the company faces slower market conditions in North America.
Sales reached $573 million for the final quarter of Terex AWP鈥檚 2024 financial, representing a drop of $87 million compared to the same period last year.
Income from operations stood at $18 million in the fourth quarter, compared to $61 million, or 9.2% of net sales in the prior year
The all electric Genie S-85 XC E made its debut at the ARA Show. (Photo: Genie).
The softening of the market towards the end of the year is reflected in Terex AWP鈥檚 full year results, which shows a 2.5% rise in net sales to $3 billion overall. Although income from operations was down year-on-year from $371 million in the company鈥檚 2023 financial year to $342 million in 2024.
Terex President and CEO Simon Meester, said, 鈥淥ur legacy businesses adapted quickly to industry-wide channel adjustments in the second half of the year, reducing costs and stepping down production levels to align with demand.鈥�
The company added that margins at Genie have been impacted by aggressive production cuts, product moves, and unfavourable mix in aerials.
Production strategy
In response Genie is continuing to adapt its manufacturing footprint and drive operational efficiency, which has included optimising the company鈥檚 locations in Mexico, Italy and China, as well as aimed at maximizing return on investment.
The Utilities segment saw a more positive figure, said the company. 鈥淲e expect the industry-wide channel dynamics that impacted our Aerials and MP (Material Processing) businesses in the back half of 2024 to carry into the first half of 2025. We also expect ESG (Environmental Solutions Group) and Terex Utilities to carry strong momentum into 2025 and continue to grow,鈥� added Meester.
ESG made a strong contribution in the fourth quarter, following the Terex鈥檚 2024 acquisition of the company in the fourth quarter.
Julie Beck, Senior Vice President and Chief Financial Officer of Terex, added, 鈥淥ur Q4 results were largely in line with our expectations as channel adjustments impacted our legacy businesses and ESG was immediately accretive following the completion of the acquisition early in the quarter. We continue to maintain a flexible balance sheet, and will focus on deleveraging, investing in our businesses and returning capital to shareholders in 2025.鈥�
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