Terex posted net sales of $1.2 billion in the fourth quarter of 2022 compared to $1.0 billion in the fourth quarter of 2021, a 23-percent increase. The increase was primarily driven by increased demand for its products and improved price realization necessary to mitigate rising costs across all segments, which was partially offset by an 8.3-percent negative impact from changes in foreign exchange rates.
Income from operations of $120.8 million, or 9.9 percent of net sales in the fourth quarter of 2022, improved from $69.8 million, or 7 percent of net sales in Q421. The year-over-year increase of $51 million was driven by incremental margin achieved on higher sales volume, favorable mix, and price realization, which more than offset cost increases and the negative impact of foreign exchange rates during the quarter.
For the full year, net sales were $4.4 billion for 2022, compared to $3.9 billion in 2021, a 13.7-percent jump. The increase was from healthy demand for the company’s products across multiple businesses and price realization, necessary to mitigate rising costs, and partially offset by a 6.3-percent negative impact from changes in foreign exchange rates.
"The fourth quarter marked an excellent finish to a strong year for Terex,” said Terex chairman and CEO John Garrison Jr. “We successfully navigated complex global macro dynamics to deliver significant revenue and earnings growth. I would like to thank the Terex team members for their hard work, dedication, and resilience in managing through this environment. Our 2022 results showcase the strength of our portfolio of diverse market-leading businesses and our continued leadership in attractive growth markets.
"We were able to achieve price cost neutrality for the full year, despite global supply chain disruptions and considerable inflationary pressures. Our team remains focused on executing our multi-year growth plan as highlighted at our December Investor Day. We entered 2023 with backlog of $4.1 billion, an increase of 22 percent year over year, clearly showing strong demand from our customers. Our globally recognized brands, industry-leading and innovative new products, robust backlog, and balance sheet position us well to manage our business amidst continued macroeconomic volatility. We expect 2023 sales to be between $4.6 and $4.8 billion and earnings per share to be between $4.60 and $5.00 as we capitalize on favorable megatrends and continue to deliver profitable growth."
Aerial Work Platforms
In Terex’s Aerial Work Platform segment (Genie), net sales in the fourth quarter of 2022 were $671.8 million, a 25.7-percent year-over-year increase. Excluding the impact of foreign exchange rates, net sales jumped 32.2 percent. For the full year, net sales totaled $2.5 billion, a 14-percent year-over-year hike.
In Terex’s Materials Processing segment, net sales were $550.3 million for the fourth quarter of 2022, a 21.2-percent increase compared to the fourth quarter of 2021. For the full year, net sales were $1.9 billion for 2022, a 14.8-percent year-over-year hike, and a 22.9-percent jump in not for the impact of foreign exchange rates.
