Backlogs persist at material handlers Terex, Manitowoc

Order backlog rose at material handling companies Terex and Manitowoc in the first quarter, as demand for equipment continues to outpace supply.  

Both companies reported a steady backlog in the first quarter of 2024, driven by strong demand for material handling equipment in North America despite softening in European markets.  

Norwalk, Conn.-based Terex is “prudently planning for the continued softness in Europe over the balance of the year,” President and Chief Executive Simon Meester said in the company’s April 25 earnings report. “Overall, customer demand remains strong for Terex’s differentiated products as evidenced by our robust backlog.”  

Milwaukee-based Manitowoc also reported May 7 that its backlog grew on a quarterly basis, continuing the trend from last year. The company reported a slight decrease in annual backlog compared to Q1 2023, which it attributed to more shipments as a result of easing supply chains.  

BY THE NUMBERS 

Terex 

• Order backlog in Q1 was $3.1 billion, twice the historical average. 
• Materials processing accounted for $712 million of the backlog;  
• Most of the backlog in the quarter came from demand for the company’s aerial works platforms (AWP) division, which received $2.43 billion in orders in Q1; 
• Net sales in Terex’s AWP division were $772.7 million, up 12.7% year over year; and  
• Net materials processing sales were down 6.1%, or $33.8 million, YoY in Q1. 

Manitowoc  

• Q1 orders were $554.1 million, up 5.6% YoY from $524.8 million in Q1 2023.  
• Backlog was $971.3 million, down 9.7% compared with $1.07 billion in Q1 2023.  
• Net sales were $495.1 million, down 2.6% from $508.3 million in Q1 2023.  

European slowdown expected 

Both Terex and Manitowoc said in their earnings reports that demand in North American markets could make up for an expected downturn in demand for materials handling and processing equipment in Europe in the next several quarters.  

“We anticipate the European tower crane market to remain challenging, which is reflected in our full-year outlook,” Manitowoc President and CEO Aaron Ravenscroft said in a statement.  

Terex retails its equipment in Australia, Asia, North America and Europe. The company said that a “significant housing shortage” in Europe is leading to lower demand for equipment, a trend Senior Vice President and Chief Financial Officer Julie Beck warned of in the company’s Q4 2023 earnings report.  

Terex said in its Q1 earnings report that it expects net sales in 2024 to increase to $5.4 billion. The materials processing sector is expected to generate up to $2.3 million, while aerial work platforms are estimated to add up to $3.1 million.  

“I view the medium- and long-term outlook in the U.S. favorably,” Ravenscroft said during Manitowoc’s first quarter earnings call. But, “turning to Europe, the tower crane market remains very challenging. Our data suggests that the tower crane market is operating at 2009 levels.  

“In spite of this difficult environment for machine orders, our aftermarket sales have held up relatively steady,” Ravenscroft said.  

Ravenscroft referenced a recent report by the Committee for European Construction Equipment that indicated “the overall European construction market will stabilize in 2024 and start to recover in 2025, driven by government investment in renewable energies and industrial infrastructure.”