Terex Corp.’s Net Sales Declines 6 Percent in Third Quarter, While Aerial Division Rises 2.4 Percent
Terex Corp. posted $1.212 billion in net sales in the third quarter of 2024 compared to $1.290 billion in the third quarter of 2023, a 6 percent decrease, as a result of declines in Material Processing, partially offset by modest growth in sales of Aerial Work Platforms. Income from operations was $122 million or 10.1 percent of net sales compared to $163 million or 12.6 percent of net sales during the third quarter of 2023. Income from continuing operations was $88 million, or $1.31 per share, compared to $119 million or $1.75 per share in the year-ago period.
Return on invested capital of 23.7 percent exceeded the cost of capital, the company said.
Net sales of $444 million in the Materials Processing division were down $97 million year over year, resulting from channel adjustments and lower end-market demand in some areas. Income from operations was $56 million, or 12.6 percent of net sales, compared to $92 million, or 17 percent of net sales a year ago. Adjusted income from operations was $59 million or 13.3 percent of net sales for the third quarter of 2024. The change was primarily the result of lower sales volume and unfavorable product and geographic mix.
In the Aerial Work Platforms division, net sales were $769 million, a 2.4 percent increase. During the third quarter, customers adjusted delivery schedules to align with fleet productivity and shorter equipment lead times. Income from operations was $83 million, or 10.8 percent of net sales, compared to $93 million or 12.4 percent of net sales a year ago. Adjusted income from operations was $85 million, or 11.1 percent of net sales in the third quarter as a result of higher freight costs and an unfavorable product mix. Genie is continuing to execute cost reductions and align production plans with market requirements.
"The Terex team adapted quickly to in-quarter industry channel adjustments and executed at a high level throughout the third quarter," said Simon Meester, Terex president and CEO. "In early October, we completed the acquisition of Environmental Solutions Group, strengthening our portfolio and leveraging our operating system to drive sustainable, accelerated long-term growth. ESG adds a non-cyclical, financially accretive, and market-leading business to Terex's portfolio with tangible synergies in the fast-growing waste and recycling end market."
For the full first nine months of 2024, Terex posted $3.886 billion in net sales, compared to $3.929 billion for the first months of 2023, a 1.1-percent decrease.
"Our Q3 results reflect lower than expected volume in the quarter. We continue to take action to reduce costs and align production with demand," added Julie Beck, senior vice president and chief financial officer. "I am very pleased that our future financial results will enjoy the accretive addition of ESG, reducing our cyclicality going forward. I am also pleased with the results of our ESG acquisition-related funding actions. We maintain a strong and agile balance sheet that will continue to enable us to fund strategic growth initiatives and return capital to shareholders."
