Q1 sales at Terex AWP down 4.7%

By Maria Hadlow26 April 2010

Tom Riordan, president and COO of Terex

Tom Riordan, president and COO of Terex

First quarter sales at Terex AWP (aerial work platforms) fell 4.7%, to $215.7 million compared to the first quarter of 2009. Excluding the translation effect of foreign currency exchange rate changes, net sales decreased approximately 9%.

Terex said, "Rental customers in the North American and European markets continued to age and reduce their aerial fleets, deferring the purchase of new products. Developing market demand for large booms, light towers and telehandlers has continued to steadily improve, as markets such as Brazil are building equipment fleets to support strong infrastructure growth under way."

Tom Riordan, Terex president and chief operating officer, said, "Overall, order activity in most of our product categories increased during the first quarter of 2010 compared with the previous quarter and previous year periods. ... Our Aerial Work Platforms business continues to reflect soft demand from the rental channel, although increased production schedules and a fuller factory workload should improve operating profit performance in the coming months. ... Overall, we see continued non-residential end-market softness in North America and Europe and strength in developing markets for the remainder of the year. We are pursuing initiatives to grow our market share and we have several new product launches planned for this fall."

AWP segment backlog increased 35% compared to March 31, 2009, and increased 28% as compared to December 31, 2009, reflecting a modest degree of ordering that occurred during the first quarter of 2010. Terex said that demand generally remained soft, as customers were waiting until equipment was needed before ordering and the rental channel, the primary customer for AWP products, was focused on purchasing other types of equipment, namely compact construction equipment.

As a whole the Terex Corporation announced a net income for the first quarter of $539.9 million, or $4.98 per share, compared to a net loss of $74.9 million, or $0.79 per share, for the first quarter of 2009. The income from the disposal of the Mining business for $620.4 million accounted for much of this as net sales for continuing operations decreased 3.1%: from $965.8 million in the first quarter of 2009 to $935.9 million in 2010. Net sales decreased approximately 17% from the comparable prior year period when adjusting for the translation effect of foreign currency exchange rate changes and excluding the Port Equipment business, which was acquired in the third quarter of 2009.

Ron DeFeo, Terex chairman and chief executive officer said, "First quarter results were in line with our expectations. Clearly, we had significant gains from the sale of the Mining business, but we also had a stable, but low, level of operating performance from continuing operations. We see tangible signs of an improving environment, with moderately positive order activity in many of our early cycle product categories versus year ago levels. While we believe end markets will not provide much sales volume benefit in 2010, current trends have increased our confidence in a more robust 2011 operating environment. We remain confident in the long-term outlook for our business and are focused on achieving positive earnings per share (EPS) performance exiting 2010, as we have previously indicated."

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, Access, Lift & Handlers Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Featured Training From Easybook
NYC SST Online Training

The clock is ticking… Construction workers in New York City – have you fulfilled your required Site Safety Training (SST)? Get your SST card online now

Latest Events
Last chance to register for the virtual ALH Conference
The ALH Conference is set to kick off (virtually) at 9 a.m. CST on Tuesday, Sept. 14. This is your last chance to register for the live event
ALH Conference shifts to virtual format
The ALH Conference, set for September 14, will be held online, ALH and KHL Group have announced. Registration is now open
ARA Show: Rental-ready
The ARA Show will return to Las Vegas this October for the first time in eight years. ALH provides a preview to the all-things-rental event.
Off-Highway Research

The gold standard in market research

Off-Highway Research offers a library of more than 200 regularly updated reports, providing forensic detail on key aspects of the construction equipment industry.

Our detailed insights and expert analyses are used by over 500 of the world’s largest and most successful suppliers, manufacturers and distributers, to inform their strategic plans and deliver profitable growth.

Click here to visit our website

CONNECT WITH THE TEAM
Lindsey Anderson Editor, Access, Lift & Handlers Tel: +1 312 929 4409 E-mail: lindsey.anderson@khl.com
Tony Radke Sales Manager Tel: +1 480 478 6302 E-mail: tony.radke@khl.com
CONNECT WITH SOCIAL MEDIA