05.05.2006

Terex Crane sales up 23%

Terex corp has announced its first quarter results, which show group revenues up by 21 percent on 2005 to €1.75 billion. Gross margins improved dramatically pushing gross profit up by 53 percent, while net income almost tripled from $29.9 million to $80.6 million.

The Crane business did marginally better than the group with sales increasing by 23 percent to $369 million, compared to $299 in the same period last year. Gross margins also recovered strongly, rising from 10 percent of sales to 15 percent. The crane divisions operating income were 500% up in 2005 at $26 million.

The order book for cranes more than doubled to $634 million, which equates to over five months in terms of average delivery times.

The company put much of the improvement down to strong sales of tower cranes, typically a high margin product, and an improving North American crane market.

"The Terex Cranes segment continued to show strong revenue growth from its recent cyclical lows," said Steve Filipov, president of Terex Cranes. "Our first quarter net sales for the North American business, which has been struggling for the past few years, were approximately 90 percent higher than the same quarter the prior year, which was partially impacted by a strike at our Waverly, Iowa location. The tower crane business continues to operate well in a strong demand market, posting stronger than anticipated net sales increases versus the prior year. The international crane business, led mainly by our German business, as well as our Australian operations, had modest revenue growth, but improved profitability through better sourcing of components and pricing actions."


"Similar to 2005, we continue to see strong results from our tower crane business and our French operation, where we have a strong backlog. The North American business, specifically rough terrain cranes and boom trucks, have rebounded sharply in terms of demand compared with this time last year, and the backlog for our German large crawler cranes has increased, in response to large infrastructure projects being approved in Asia, the Middle East and Africa. Unlike last year, where orders from customers were scarce, we are now faced with the challenge of increasing production and component constraints as a limiting factor on net sales and profitability. Our management team has put together a plan that addresses the concern on the supply side, and the Waverly, Iowa facility is primed for an even stronger second quarter." continued Filipov