Net sales for Terex in the fourth quarter of 2023 totaled $1,222.6 million, compared to $1,217.6 million in the fourth quarter of 2022. While the fourth quarter increase is a relatively small 4.1 percent, the full year increase for Terex was significantly higher. The company’s total 2023 net sales totaled $5,151.5 million compared to $4.417.7 million in 2022, a 16.6-percent increase.
The full-year increase was primarily driven by strong demand for Terex’s products across multiple businesses and all major geographies and price realization necessary to mitigate rising costs, across all segments.
Income from continuing operations was $127.9 million, or $1.88 per share in the fourth quarter, compared to $92 million or $1.34 per share in the fourth quarter of 2022. Income from operations of $636.5 million, or 12.4 percent of net sales in the full-year 2023, increased from $420 million or 9.5 percent of net sales in 2022. The increase was primarily driven by incremental profit achieved on higher sales volume, improved manufacturing efficiencies and price realization, partially offset by cost increases. Excluding net one-time expenses of $15.2 million, operating margins were 12.7 percent.
Income from continuing operations for the full year of 2023 was $516.7 million, or $7.56 per share, compared to $300.2 million, or $4.32 per share in 2022. Return on invested capital of 28.5 percent significantly exceeded Terex’s total cost of capital as the company continued to invest in the business and return cash to shareholders through dividends and share repurchases.
“We are pleased by our strong 2023 performance and believe Terex is well-positioned to continue to deliver value to its customers and shareholders, with strong demand for its products and favorable megatrends for the long term,” said president and CEO Simon Meester. “Our annual results demonstrate significant improvement over the prior year and highlight our ability to successfully manage cost inflation and supply chain challenges. As we begin the new year, we again expect to deliver strong results across our diverse product portfolio, driven by our differentiated offerings, continued focus on efficiency and favorable end markets. We do anticipate some headwinds from European markets as well as lingering, yet slowly improving supply chain disruptions. As such, Terex plans to deliver sales between $5.1 and $5.3 billion and earnings per share between $6.85 and $7.25 and with that, continue to stay ahead of our December 2022 Investor Day targets.”
Aerial work platforms (Genie) division
The Aerial Work Platforms or Genie division posted net sales of $659.9 million for the fourth quarter of 2023, down slightly from the fourth quarter of 2022 as deliveries returned to a more normal seasonal pattern, income from operations increased 13 percent to $61.0 million for the fourth quarter of 2023, or 9.2 percent of net sales, compared to $54 million or 8 percent of net sales in the previous year. The increase was driven by price realization and cost reduction initiatives, partially offset by costs associated with the ramp-up of Terex’s Monterrey, Mexico, facility and severance charges.
For the full year of 2023, net sales totaled $2.9 billion for the full year of 2023, a 17.6 percent increase year over year. Income from operations jumped 89.2 percent to $371.3 million for the full year 2023, or 12.7 percent of net sales, compared to $196.2 million or 7.9 percent of net sales in 2022 as Genie reached its goal of price/cost neutrality for the year.
Materials processing
Net sales for Terex’s Materials Processing division totaled $554.7 million in the fourth quarter of 2023, a 0.8 percent year-over-year increase, primarily driven by healthy demand across multiple businesses. Income from operations decreased 3.7 percent to $83.8 million for the quarter or 15.1 percent of net sales, compared to $87 million or 15.8 percent of net sales in Q4ww. For the fully year of 2023, net sales were $2.2 billion, a 14.7-percent year-over-year increase. Income from operations for the full year increased 20.4 percent to $358.6 million compared to $297.8 million in 2022.
