Terex Corporation reported a strong finish to the year, with Q4 net sales of nearly $1.1 billion, +9.1% versus 2016 thanks to improving market demand and successful implementation of the company's transformation strategy.
For the full year, Terex reported net sales of $4.4 billion – down 1.8% from 2016 due to the sale of non-core businesses and softness in its mobile cranes business. The positive year-end momentum is poised to continue with the company reporting backlog up by 56% at year end.
The Cranes business segment benefitted from significant restructuring activity during 2017. In the fourth quarter, net sales for the segment were essentially flat versus 2016, while the business was profitable for the most recent three quarters. The focus on simplifying the business to be more responsive to customer needs coupled with the introduction of new products across the Demag® and Terex® brands are paying off. Customer interest in an exciting line up of new products is evident with backlog up +70%.
"The fourth quarter marked an excellent finish to an important year for Terex with profitability increasing significantly," remarked John L. Garrison, Terex President and CEO. "We continued to simplify the company to enhance efficiency and make it easier for our customers to do business with us. We reduced administrative expenses while increasing investment in innovation, strategic sourcing, and commercial excellence."
Steve Filipov, President Terex Cranes commented, "We will be launching innovative new products throughout the year. The global crane markets have stabilized, and we see pockets of growth. We plan to improve productivity on higher volumes and better operational execution in 2018."