22.04.2009

Terex cranes down 29%

Terex Cranes has first reported quarter revenues down 29 percent to $461 million, while operating profits slumped 70 percent to $25.4 million. If currency factors are excluded the fall in revenues would have been just 19 percent.

Rough terrain and tower crane sales fell by largest levels, while demand for high capacity crawler and All Terrain cranes remained strong.

Crane backlog decreased 41 percent compared to the end of March 2008 and down by 32.6 percent since the end of December.

The company says “Existing orders continue to be re-affirmed and a financing program for cranes through Terex Financial Services was recently launched and has helped solidify backlog.”

Operating margins decreased to 5.5 percent, compared to 12.9 percent in the first quarter of 2008. Lower net sales compared to the prior year period combined with higher input costs to negatively impact profitability by approximately $58 million. These decreases were partially offset by increased price realisation of approximately $14 million.


Terex Group

Terex as a whole reported revenues down by 45 percent for the first quarter to $1.3 billion while posting a pre-tax loss of $98 million, compared to a profit of $238 million last year.

Ron DeFeo, Terex chairman and chief executive said: “The turmoil from the global credit crisis and economic slowdown has quickly and deeply impacted sales for our industry, with certain sectors down almost 75 percent from year ago levels. In response, we are aggressively reducing costs, with manufacturing spending in the first quarter of 2009 down 39 percent from the peak spending level in the second quarter of 2008 and down 16 percent sequentially, and selling, general and administrative spending both excluding restructuring, down 26 percent and 14 percent, respectively, for the same periods.”

“Combined, this results in a $208 million quarterly spending reduction, and we expect to exceed a $300 million per quarter spending reduction by year end. We continue to operate at reduced production levels, in many instances at levels well below our current demand, with a primary objective to reduce inventory where we saw progress in the quarter with a solid reduction in raw material deliveries. The short term goal is to focus on the loss making businesses to achieve a breakeven or profitable level, while being cash flow positive for the overall Company, even at these trough levels.”