03.02.2005

Terex issues outlook indications

Terex Corporation has responded to rumours regarding its outlook for 2005 and said that it expects a more normal year than 2004 as price increases and efficiency gains help cover last years raw material inflation.

Year end revenues for 2004 have not yet been released but should come in around $4.6 billion dollars, if not closer to five billion. In its statement today the company estimated 2005 revenues in the $5.4 to $5.6 billion range an increase on 2004 of around 20 percent.

Ronald M. DeFeo, Chairman and Chief Executive Officer, commented, "As previously reported, many of our businesses are experiencing increased demand and we expect that demand to continue in 2005. But as I have also previously stated, the challenges of supplier issues, particularly steel pricing, continue to have an effect on our business. However, we expect to see the positive impact of some of the already announced price increases in the near term, and between increased prices and better purchasing, we anticipate that 2005 will be a more normal year where volume leverage can be turned into margin improvements."

This statement is virtually identical to what he said back in October when third quarter results were announced.(see News Archive October 29th 2004) Terex third Qtr but it seems that rumours have been circulating that the management was becoming more negative on the possiblities of margin improvements fro 2005.

As a result the share price dropped from a high of around $46 in January to under $40 this morning, touching a low of 39.63. Since the statement was issued, the price has started to recover moving up over $40 again this afternoon.