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24.02.2009

Terex may exit construction

Terex chief executive Ron Defeo has said that it is reviewing its construction and road building divisions with a view of possible selling them and exiting the sector as it focuses on generating cash and positioning itself in preparation for the upturn.

Defeo was speaking at the Reuters Manufacturing Summit in Chicago and is quoted "my job over the next nine months is to fix, merge or sell” in referring to the two business units.”

He also said that it is still hard to determine what 2009 will be like, but was optimistic that the company’s negotiations with lenders to suspend or modify covenants would be "resolved reasonably quickly."

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