Soft market hits Terex Cranes in Q3

Net sales at Terex Cranes for the third quarter of 2013 were US$ 453 million, down $63 million or just over 12 %, from the $516 million in the same quarter of 2012.

Better was the MHPS segment that includes port cranes. Net sales there were $ 461 million in Q3 2013, up 3.5 % from $445 million in the same quarter of 2012.

Ron DeFeo, Terex chairman and chief executive officer, “Our Cranes segment continues to experience soft market conditions. Geographically, the global economy is best described as lacking a clear direction. North America remains the most stable market overall. Europe has seen slight improvements in certain products, mostly in our AWP segment, and the Middle East continues to provide growth. However, overall weakness in Europe and Australia have offset the growth we have experienced in other markets.”

DeFeo continued, “Our operating margins have remained consistent. However, we expected 2013 to be a year of significant sales growth, and this has not occurred. Our businesses that have a significant portion of products dependent on non-residential construction have not recovered as quickly as we had expected. Businesses that are less dependent on non-residential construction, such as our Port Solutions and AWP businesses, are seeing improving business conditions.”

Net sales for the whole of Terex Corporation were $1,811 million in the third quarter of 2013, down 0.6 % from $1,822 million in the same period a year earlier. Income from operations was $140.9 million in the third quarter of 2013, an increase of $9.0 million on the $131.9 million for Q3 a year before.

“Our third quarter operating results were as we expected but with a better tax rate,” DeFeo continued, “The current environment is mixed overall and remains challenging to predict.”