17.06.2013

Terex lowers profit forecasts

Terex has lowered its full year 2013 earnings projections by around 20 percent, due to a softer market for some of its business sectors, principally Construction and Material Handling & Port Solutions. Aerial Lifts and Materials Processing remain strong, while Cranes fall between the two.

Earnings per share guidance has been lowered from $2.4 - $2.7 a share, to between $1.90 and $2.10, but the company still expects to post an improvement over 2012, and says that this change does not reflect any long term slowdown in its business.

Chief executive Ron Defeo said: “The level of sales growth has softened overall for Terex when compared with the increases we originally anticipated for 2013. More specifically, we are experiencing a softer marketplace for our Construction, Material Handling & Port Solutions and, to a lesser degree, our Cranes operations.”

“We do continue to experience positive replacement demand for Aerial Work Platform products and solid performance for Materials Processing. However, strength from these businesses will not offset the revenue variances of the balance of our business.”

“Fundamentally, North America continues to improve, but now at a slower pace, while Europe remains challenging overall, and the markets in the rest of the world are mixed. We remain generally on track with the operating changes underway, including the cost reduction initiatives in our MHPS and Cranes businesses, as well as the divestiture of under performing businesses in our Construction segment. We continue to expect that the second half of 2013 will show improved results when compared with 2012.”

“We expect to provide a segment specific outlook for the remainder of 2013 when we report second quarter results in late July. We do not view this near term softening as evidence of a protracted slowdown.”