North American materials handling equipment makers Terex and Oshkosh have both reported an increase in sales in the second quarter.
On the back of their strong financial results, both companies increased their full year outlooks.
Terex posted sales of USD1.4 billion in the second quarter, a 30% increase on the same period a year earlier.
The company, which makes Genie telehandlers and ZenRobotics picking and sorting robots, said the increase in net sales was primarily driven by healthy demand for its products across multiple businesses and all major geographies, as well prices rises to mitigate rising costs.
Terex chief executive officer John L. Garrison, Jr. said: “The Terex team delivered another quarter of outstanding performance.
“We successfully overcame supply chain challenges to deliver a 30% increase in sales over the prior year.”
Garrison increased the company’s sales outlook for the full year to USD5.1 billion, up from the previous estimate of between USD4.8 billion and USD5 billion.
He noted that Terex was seeing “growing evidence of onshoring in North America manufacturing and an increased focus by global players to achieve their sustainability goals”.
Oshkosh Corporation attributed a 16.8% increase in sales to USD2.41 billion in the second quarter to higher sales volume, primarily in the Access segment, and improved pricing.
The company, which makes JLG and Skytrack telehandlers, reported net income of USD175 million in the second quarter, up from USD32.1 million in the same period a year earlier.
Oshkosh president and chief executive John Pfeifer the company’s Access and Vocational segments both delivered double-digit operating margins as supply chains improved but not to historical norms.
“Our results demonstrate that our actions over the past several quarters to redesign, resource and dual source components as well as implement numerous operational improvements are enhancing our resiliency in a constrained supply chain environment,” Pfeifer said.
“Demand remains strong across the board for our industry-leading products and services, highlighted by robust orders in the quarter. We ended the quarter with a consolidated backlog of USD15 billion, which provides solid visibility well into 2024.”
Pfeifer said the acquisition of AeroTech business from JBT Corporation was completed in the second quarter, which was expected to drive growth in airport services in its Oshkosh’s Vocational segment.
“As a result of our strong second quarter performance and ongoing improvements in our operations and supply chains as well as our positive outlook for the remainder of 2023, we are increasing our expectations for 2023 earnings per share to be in a range of USD7.65 and 2023 adjusted earnings per share to be in a range of USD8.00,” Pfeifer said.
“We look forward to continuing our momentum through the rest of the year and believe we are well positioned for 2024 and beyond, given our strong backlog, leading technologies, positive market sentiment and the strength of our people.”