Crane sales leap at Terex

Terex Cranes reported a net sales increase of 47.4%, or US$174.9 million, to $543.6 million compared to the same period in 2010.

Adjusting for the translation effect of foreign currency exchange rate changes, net sales increased about 32% from the third quarter in 2010.

The company said almost every crane category saw increased sales over the thrid quarter of 2010, with straddle carriers, rough terrain cranes and boom trucks being the largest contributors to the sales growth.

"Sales in the USA more than doubled and there was stronger demand in China, India and Germany. However, the truck cranes business in China experienced a significant decrease in demand," said a Terex spokesman.

Third quarter income from operations stood at $25.9 million, or 4.8% of net sales, compared with $3.9 million, or 1.1% of net sales, during the same period 2010.

"Operating results benefited from increased sales volumes, as well as the cost savings from restructuring activities previously initiated at the company's facilities to better match capacity with market demand," said the spokesman.

Net sales for the group's Material Handling & Port Solutions (MHPS) segment were $256 million and incorporate the results of Demag Cranes AG after Terex bought the company on 16 August 2011. Segment net sales were driven by strength in Europe, particularly Germany, said the company, increasing demand for industrial cranes, as well as mobile harbour cranes.

"This period is typically a strong sales period for the MHPS segment, as many industrial crane customers service their equipment when plants are shut down over the summer," explained the spokesman.

There was a loss of $2.6 million in the quarter, following the Demag buyout. This resulted from a $19.3 million revaluation of inventory at the acquisition date, among other costs.

While the effects of purchase accounting adversely impacted the third quarter performance of the new MHPS segment, the company said it was optimistic about the longer term opportunities for the business.

"We own approximately 82% of the outstanding shares of Demag Cranes AG and we have begun negotiations of a domination and profit and loss transfer agreement. While this is not expected to be completed until 2012, we have commenced an integration planning process involving the management teams of both businesses," said Ron DeFeo, Terex chairman and CEO.

Terex Corporation group net sales from continuing operations stood at $1.8 billion for the third quarter, an increase of 67.7% from $1.076 billion in the same period 2010. Excluding the impact of the acquisition of Demag Cranes AG, net sales increased about 44% from the comparable period last year.