Another loss for Terex
22 October 2009
Terex made a net loss of US$ 103 million in the third quarter of the year, compared to a profit of US$ 94 million in the same period last year. Sales for the three-month period were down -51% to US$ 1.23 billion, compared to US$ 2.51 billion a year ago.
Terex Chairman and CEO Ron DeFeo said, "This was a disappointing quarter but we feel that we are turning the corner to better performance. We have built a company that is both geographically and product diverse, but virtually no part of our business has weathered these market conditions unscathed. Fortunately, we see signs that certain markets have stabilised and even a few signs that point to growth."
The biggest fall in revenues was seen in the company's Aerial Work Platform division, which operates the Genie brand. Here revenues were down -67% on the same period last year to US$ 201 million, and the division made an operating loss of US$ 50 million. Terex put this down to rental companies in North America and Europe allowing their fleets to age rather than buying new machines.
Terex's construction division also saw a sharp fall, with revenues of US$ 236 million for the quarter coming in some -56% lower than the same period last year. The division made an operating loss of US$ 60 million.
The company's Materials Processing & Mining segment also saw a steep fall in revenues - -49% to US$ 339 million for the quarter. However, it made a small operating profit of US$ 5.4 million.
Similarly, revenues were down -38% to US$ 455 million at Terex Cranes, but the division managed to generate an operating profit of US$ 12.1 million.
The crane segment continues to account for the bulk of Terex's order backlog. As of the end of September, the company held orders for cranes totalling US$ 1.02 billion - equivalent to 6.7 months' production at current levels. However, the company's total backlog was US$ 1.52 billion, meaning crane orders account for two thirds of the group total.
Year to date
Having made losses throughout the year, Terex's results for the first nine months of 2009 show a US$ 256 million net loss. Sales revenues to date stand at US$ 3.85 billion - down more than -50% on 2008.
