Genie, the Terex AWP brand, has reported a 3% operating margin in its third quarter results for the year, which the company says is a sign of gradual improvement in the market even though net sales were down for the quarter.
Net sales of aerial work platforms at Genie were reported at $445m for Q3 2020, 29% lower year-on-year over the $628.2m recorded last year. Total sales for the first nine months of 2020 were also down 37.5% over 2019 at $1.37bn. Utilisation levels of equipment, however, rose in Q3 this year.
John L. Garrison, Terex Corp. chairman and CEO, said: “Aerial Work Platforms improved its operating performance delivering 3% operating margin, reflecting the gradual sequential improvement in business activity. In addition, both Genie and Terex Utilities are seeing improved utilisation levels of their equipment.”
As a group, Terex reported revenues of $2.29bn for the first nine months of the year, 34% lower year-on-year than for the same period last year.
“Our ability to execute and safely serve customers during this uncertain time drove sequentially stronger financial performance. Our results demonstrate the progress we are making to align our cost structure with the current customer demand environment. We are strategically reducing spending and consolidating our company wide footprint. These actions will enable us to maintain a competitive cost structure and position us for growth,” Garrison said.
Terex Corp. said, consistent with historical cash flow patterns, the fourth quarter of 2020 is expected to be the company’s strongest free cash flow quarter of the year, with net working capital continuing to be a source of cash.
“I am very proud with how our global team is managing through this challenging year. We are on the path to enter 2021 as an even stronger company,” said Garrison.