Terex Cranes returns to profitability in Q2 2017, despite sales drop
John Garrison, president and CEO of Terex Cranes, points to rising bookings and backlog, greater global stability and recent Demag all-terrain orders in the Middle East
Terex Cranes generated $14.5m in profit in Q2 2017, compared to the $12.8m loss witnessed in Q2 2016, despite a 15% drop in the business’s sales revenue from $357.4m in the same period in the previous year to $303.8m in the second quarter.
The order backlog also grew by 29% year-on-year in Q2 2017, while bookings grew by 26%.
John Garrison, president and CEO of Terex Cranes, told Cranes Today: “In terms of sustainability of the backlog, we are pleased by the bookings and backlog. I would say that the cranes market remain challenging but it is clearly stabilising and we’re seeing that stabilisation across the globe.”
The comments also align with those of Joerg Mueller, senior manager for international sales at Terex Cranes, who recently projected that the crawler cranes market in Saudi Arabia would recover within 18 months.
Mueller noted: “In Saudi Arabia, our expectations are improving compared with 2016, and I expect that it will get better by the end of 2017, and definitely by 2018.”
Garrison pointed to the large number of Demag all-terrain crane sales in Middle East, as well as growth in orders for tower cranes in UK and North America.
These include the sale of 15 five-axle Demag AC-130-5 all-terrain cranes to Bahrain-based Sarens Nass Middle East, an order for 12 Demag cranes by Kuwait-based Integrated Logistics Company, an order for Demag and Terex all-terrain cranes by Bahrain’s Modern Mechanical, Electrical and Transporting, and an order for five Demag all-terrain cranes by Kuwait’s Jassim Transport & Stevedoring Company.
Across H1 2017, Terex Cranes’s sales revenue stands at $567.7m, or $97m less than in H1 2016.