Terex makes third quarter loss
Terex sees growth but crane business will bottom out in 2011
Terex has announced that it has made a net loss of $89.2 million in the third quarter, however net sales for the company were $1.07 billion in the third quarter of 2010, an increase of 15.2% from $933.9 million in the third quarter of 2009.
The manufacturer was also positive about its near-term prospects, predicting sequential profit growth of 10-15 percent, to a range of $1.19 billion to $1.24 billion. The bad news is that while its losses narrowed as revenue and margins increased, its cranes business continued to worsen.
The company provided aerial work platforms (AWP) and materials processing, but cranes remain Terex’ biggest segment and sales and earnings fell 15 percent and 22 percent respectively.
“Our AWP and MP results were solid, with positive order and backlog trends. Construction had near breakeven operating profit, excluding unusual items, but the European cranes business fell faster than anticipated,” commented Ron DeFeo, Terex Chairman and Chief Executive Officer.
“We expect the fourth quarter to reflect continued strengthening trends in AWP, Construction and MP, with a weaker cranes business than we had previously anticipated.”
Phil Widman, CFO, added: "We continue to invest in developing markets. We are building a new facility in Brazil and recently started production in our new Chinese AWP facility. Developing markets now make up approximately one-third of Terex overall sales."