Belfast Telegraph

Terex profits hit £387m despite challenges

by margaret canning

Co Tyrone manufacturing giant Terex enjoyed a 2.4% increase in turnover during 2015, reaching £387m, according to its latest accounts.

Sales soared by nearly 60% in the UK and Ireland, going from £72.5m in 2014 to £114m.

Terex GB, which is owned by a US company, had a pre-tax profit of £23.4m, up 2.6% from £22.8m. And it was also able to pay £6.6m in cash to acquire JMF Ltd during the year.

Terex is based in Dungannon and was formed when homegrown manufacturer Powerscreen was sold to the US company in 1999.

In a strategic report filed with the company's accounts, Terex said: "There continue to be competitive pressures in a global manufacturing market for all of the company's products."

The firm makes and distributes equipment for the screening, crushing, recycling, materials handling and construction industries.

The strategic report noted that Terex GB bought over JMF Ltd in Northern Ireland in May last year and revealed that it paid some£6.6m in cash for the Ballymoney company, which employed 172 people.

Employment at Terex grew from 1,638 to 1,778 over the year.

Terex GB stressed that it faced risks in its business from competitors and from the fact that competitors tend to use the same suppliers.

"When volumes in this market drop, the impact on the suppliers is amplified and they are at risk of failing," a spokesman said. "The company manages this risk by using a variety of suppliers."

While Terex GB sales to the UK and Ireland surged, sales to other parts of Europe were down 23% to £107m, from £140m last year. Sales to the rest of the world, however, were static at around £165m.

Powerscreen, which marked its fiftieth anniversary earlier this year, laid the foundations for Mid-Ulster's reputation for recycling and materials-handling companies.

Earlier this year, a takeover of the entire US company by the Chinese firm Zoomlion looked likely, however the Chinese company subsequently withdrew from the purchase.

In 2014, US firm Astec bought material handler Telestack, in Omagh, for £22m.

Belfast Telegraph