Terex Corp. sales dropped 15.6 percent in the fourth quarter, compared to 2018 figures, and the AWP segment dropped 20.8 percent. AWP includes Genie and Terex Utilities.
For the year, the AWP segment was down 7.6 percent to $2.7 billion, with fourth-quarter sales of $500 million, on what the company called “challenging markets in North America and Europe.”
“The fourth quarter completed a year where we faced considerable market uncertainty after two years of robust demand,” said Matt Fearon, president, Terex AWP, in a prepared statement on Genie. “We are positioned well for 2020 and excited about our innovative new products, as well as our long-term growth prospects. Particularly, we are expanding our Changzhou, China, facility in 2020 to accommodate the market growth in China for aerial products.”
AWP's 2019 results reflected cautious customer sentiment in the segment's largest markets, North America and Europe. When combined with manufacturing production below retail demand to reduce inventories, operating margins were “challenged,” according to the company.
Corporate income for the fourth quarter was $18.5 million, or $0.26 per share on sales of $885 million. This was down from Q4 2018, when income was $19.6 million on net sales of $1.05 billion.
“Our fourth quarter operating results were generally in-line with our expectations on lower revenue and reflect continued challenging global market conditions for industrial equipment,” said chairman/CEO John L. Garrison, Jr. in a statement.
For the full year, 2019, Terex reported income from continuing operations of $209.7 million, or $2.92 per share, on net sales of $4.4 billion compared with income from continuing operations of $241.7 million, or $3.14 per share, on net sales of $4.5 billion for the full year 2018.
Source: Terex Corp.
