Terex profits hit £50m after surge in sales outside Europe
MATERIALS handling giant Terex recorded a pre-tax profit of £50 million last year, as the US-owned group substantially increased its exports to the rest of the world.
Now ranked among the north's most profitable businesses, Terex GB Ltd's UK operation is largely centred on its key manufacturing sites in Omagh and Dungannon.
However it also operates sites in Lurgan and Ballymoney. Last month Terex officially opened its new £12m manufacturing hub in Derry.
After posting a 19 per cent slump in its turnover for 2017, new accounts show Terex's revenues bounced back by 15 per cent to £368.1m in the 12 months to December 31 2018.
It contributed to an 8.5 per cent rise in pre-tax profits to £49.8m for 2018, 76 per cent higher than the company's 2016 performance.
The report, published by Companies House, revealed that the proportion of the group's turnover derived from Europe has declined for the past three years running.
The £80.5m figure for 2018 was £3.3m lower than 2017, representing just a 21.9 per cent share of all revenues, the lowest share in recent years.
By contrast, the group's revenues earned from the rest of the world surged by £51m to £216.1m, or 58.7 per cent of turnover.
It compares to two years ago, when the share was just 42.2 per cent.
UK sales marginally increased by one per cent to £71.4m last year.
The strategic report presented by the directors of Terex GB described a continued “competitive pressure” in the global manufacturing market for the products produced by the firm.
“The company competes with other manufacturers based on many factors, particularly price, performance and product reliability,” it stated.
The report also identified the “deterioration of the British pound” as a continued risk for Terex “as well as the impact of Brexit on commodity prices and trading tariffs”.
Despite the company report appearing to show a reduction in staff numbers last year, a Terex spokesperson said the figure represented the average over the year.
Terex said its workforce stood at 1,880 at the end of 2018, up from 1,794 at the end of 2017.
The performance of Terex GB broadly reflected the performance of the group.
Earlier this year, the corporation announced an 18 per cent rise in sales during 2018 to $5.1bn (£4bn). The group's materials processing division, which includes its Northern Ireland operations, saw sales rise 17 per cent to $1.3bn (£1.02bn).