Sales for the Terex Cranes segment in the final quarter of 2018 grew 12 per cent compared to the same quarter in 2017, to US$365 million.
A 10 % increase was posted for crane sales over the full year, with net sales of $1.3 billion. Terex said the crane segment returned to profit in the fourth quarter of 2018 as a result of improvements in materials management and operational performance.
The news comes at the same time as the announcement of Japanese manufacturer Tadano’s acquisition of the Demag crane brand from Terex. Tadano will pay $215 million and the deal is due to close in mid-2019.
Steve Filipov, Terex Cranes president, commented, “In Q4 the cranes segment succeeded in overcoming the material supply challenges that impacted our performance earlier in 2018 – I’m proud of the team for meeting our commitments to better fulfill customer demand and return to profitability. The sale of the Demag Mobile Cranes business to Tadano Ltd. is based on strong industrial logic. Bringing these two complementary businesses together will combine Tadano’s 100 years of experience with Demag Mobile Cranes’ nearly two centuries to create a lifting company capable of bringing new leadership to the industry and continuing to create innovative lifting solutions. I also want to assure our customers that our parts and services team remains firmly in place and committed to providing them with world class support for all of their Terex cranes, and will support their Demag cranes through the transition to the new owners.”