Return on Invested Capital (ROIC) was 7.7% for the trailing twelve months ended September 30, 2012, reflecting the improved income from operations during the trailing twelve month period partially offset by the increased average invested capital, primarily due to the acquisition of the Demag Cranes AG business.
Working Capital: Working Capital as a percent of Trailing Three Month Annualized Net Sales was 30.1% at September 30, 2012, as compared to 27.0% at June 30, 2012. The increase was largely due to seasonal decline and softening demand in some segments.
Backlog: Backlog for orders deliverable during the next twelve months was approximately $1,717.6 million at September 30, 2012, a decrease of approximately 20% from September 30, 2011 and approximately 17% from June 30, 2012. The underlying factors that drove the year-over-year and sequential declines were generally very similar.
While we continue to see a strong market for our AWP products, the timing of order placement by rental companies varied during the current and prior year periods, skewing both yearly and sequential comparisons. Large, recurring fleet orders that were booked in the third quarter of 2011 are anticipated to be booked in the fourth quarter, with some already received in the weeks after the close of the third quarter. Therefore, this timing of orders was a primary contributor to the backlog decline given that these orders were not included in the associated backlog figures for the third quarter of 2012.Also contributing to this decrease was a continued reduction in orders for the Company’s Construction segment products. Globally, truck and material handler orders remained weak, with compact construction equipment demand softening in Western Europe. This was partially offset by positive demand within the Roadbuilding business for concrete mixer trucks. Additionally, the current backlog does not reflect order activity related to the recently announced supply agreement with Takeuchi to supply eight new models of Takeuchi branded skid steer loaders.