The market is slowing, according to Terex, which has reported a 7% drop in global sales to US$1 billion in the third quarter of 2019, compared to the same period last year.
Income from continuing operations was also down, from $69.2 million in the third quarter of 2018 to $52.4 million in the third quarter of this year.
John Garrison, Terex’s Chairman and CEO, said, “As we enter a more challenging macro environment for industrial equipment we are intensely focused on generating cash and maintaining a strong liquidity profile.
“We are well positioned, entering the fourth quarter with approximately $1.1 billion in available liquidity.”
The company achieved free cash flow of $104 million in the third quarter, which was a “significant improvement” on last year’s levels, according to Garrison.
Demand has declined for aerial work platforms (AWPs) in Terex’s major markets, putting pressure on sales.
“We reduced AWP production in the third quarter and have made further reductions in the fourth quarter to align with the market, which is impacting margins,” said Garrison.
For the full year, net sales are expected to come to approximately $4.4 billion, and free cash flow guidance has been adjusted to approximately $110 million.
Garrison said, “Looking ahead to 2020, we are operationally planning for sales to be approximately 10% lower than 2019 due to the softening macro environment for industrial equipment.”