23.07.2014

Terex Cranes makes progress

Terex Cranes has continued to see revenue declines, but reported a stronger second quarter with higher profits.

Total revenues for the first six months were $897.1 million, almost 10 percent lower than at this point last year. Operating income for the same period dropped 47 percent to $29.5 million but the order book at the end of the period increased by almost 14 percent to $661.4 million.

The second quarter was more positive with revenues declining just 3.5 percent to $503.5 million, while operating income for the period increased 27 percent to $29.7 million.

The group's port and overhead crane business posted first half revenues of $799 million, an increase of almost 13 percent, while posting an operating loss of $3.06 million dramatically lower than the loss of $86.3 million last year.

Chief executive Ron Defeo said: “Our results for the second quarter and first six months of the year were mixed both from a business and geographical perspective. Our Aerial Work Platforms segment had a strong quarter but margins were slightly lower than a year ago due to product mix and planned investments in new product development and manufacturing footprint. Our Cranes segment is making progress, as bookings were roughly equal to net sales during the quarter and the order entry run rate was 12 percent above the prior year level on a year to date basis. Our Material Handling & Port Solutions segment delivered quarters roughly in-line with our expectations. From a geographical perspective, Western Europe and North America were the growth drivers with increases of 35 and 15 percent respectively, with the rest of world somewhat offsetting these strengths.”

“The company’s overall outlook for 2014 remains unchanged. We expect continued strength from our AWP segment and improvement from our Cranes and MHPS segments to drive improved performance for the second half of 2014 compared with the first six months. While we see a slightly weaker end-market than we originally anticipated, from an EPS perspective, the impact on operating earnings is expected to be somewhat offset by both a lower effective tax rate and a lower anticipated share count. We reiterate our annual outlook for earnings per share of between $2.50 and $2.80, excluding restructuring and other unusual items, although now on net sales of between $7.3 billion and $7.5 billion.”

Terex as a whole reported half year revenues of $3.7 billion up six percent on 2013, while pre-tax profits more than doubled to $171.4 million.