Heavy equipment maker sees profit drop under £23m mark
Pre-tax profits at heavy equipment manufacturer Terex in Co Tyrone have slumped by 46% to just under £23m, according to its latest accounts.
The firm, which is owned by US firm Terex Corporation, employs 1,638 people in making screening, crushing and recycling machinery.
Employee numbers grew by 621 during 2013. And the majority of the workforce — 1,308 people — were employed in manufacturing operations.
Turnover was up nearly 34% to £377.7m at the company, which took over homegrown firm Powerscreen in 1999.
Pre-tax profits were £22.8m, down from £42.5m — though profits after tax were down by just 14% to £27.4m. The firm has manufacturing and distribution hubs in Southern India, Michigan, Kentucky, Oklahoma, Malaysia and Australia.
Its average period of credit for paying its creditors was 45 days in the 12 months ending December 31, 2014, compared to 42 days in —2013.
The Northern Ireland base used to be known as Terex UK but has been absorbed into Terex GB, though the headquarters remain in Dungannon. The report said the transfer of Terex UK accounted for the increase in turnover.
Its raw materials and work in progress inventory was £39.2m — up 81% on 2013 — again down to the integration of Terex UK.
The strategic report said: “There continues to be pressure in a global manufacturing market for all the company’s products.
“The company competes with other manufacturers based on many factors, particularly price, performance and product reliability. The company manages the risk by attempting to provide added value services to its customers and maintaining strong relationships with customers.”
Sales in the UK and Ireland more than tripled to reach £72,482. Other European sales also more than doubled to reach £140,165. Sales to “rest of world” were down 16% to £165,064.
During the year the company bought the trade and assets of JMF Ltd, a Ballymoney-based subcontractor to the manufacturing industry, for £6m.
The directors’ report said the company faced challenges from foreign exchange movements on intercompany funding. Supply chains also brought risk, as there was “interdependency” between the firm’s supply base and that of other competitors.
The firm also has programmes for new product development.