Terex AWP sales rise 11.7% in second quarter

22 July 2010

Ron DeFeo, Chairman and CEO at Terex

Sales at Terex's AWP division, primarily Genie branded aerial platforms and telehandlers, increased by 11.7% to US$232.4 million compared to the second quarter of 2009.

Terex said rental customers in North America and Europe continued to age their aerial fleets and defer new purchases, but that "selective buying patterns have begun to emerge." It said that de-fleeting of inventory at rental locations had appeared to slow.

The company added that developing markets remained "a strong growth component for the AWP segment as demand for large booms, light towers and telehandlers continues to steadily improve in markets like South America and South East Asia." The division made an operating loss of $2.3 million in the second quarter.

Overall, Terex made a net loss of $40.3 million in the second quarter of the year, compared to a loss of $77.6 million for the same period last year. The company's revenues were up 14% to $1.08 billion for the quarter.

Terex's Construction segment sales - including compact equipment and off-highway trucks - saw a 45.5% increase to $279.0 million versus the second quarter of 2009. Terex said this reflected a broad-based recovery from "trough levels in 2009 in almost every product category and across most regions."

Terex said compact construction equipment continued to experience good order demand, including increased demand for the compact track loader product in North America.

Terex's most profitable segment in absolute terms was the cranes division, which made a $17 million profit on sales of $449 million over the three-month period. However, Terex's mineral processing business made a higher margin ( 6.8%) with operating profits of $9.2 million on sales of $136 million.

Terex chairman and chief executive officer, Ron DeFeo, said, "We are cautious but positive about our prospects for continued improvement. Backlog in three or four segments indicate slightly improved near-term prospects. Our factories have returned to more regular work schedules and production output."