Cranes lift Terex to record Q2

25 April 2008

Terex Corporation reported record revenue of US$2.1 billion for the second quarter of 2006.

Net sales in the Terex Cranes segment for the period increased $104.4 million to $440.6 million from $336.2 million in the second quarter of 2005. The acquisition of Chinese truck crane manufacturer Sichuan Changjiang Engineering Crane Co, Ltd was attributed with about 10% of the growth in net sales in the second quarter.

“The Terex Cranes segment had an excellent quarter, with strong revenue growth of over 30% versus the prior year's results,” said Steve Filipov, president of Terex Cranes. “The performance improvement was in revenue and, more importantly, in operating profit, where we improved approximately 125% over the prior year's results, which is a tremendous accomplishment. Best of all, the positive performance was broad based, with all product lines contributing significantly to this quarter's improvements.”

Filipov added, “It would be easy to step back and enjoy our recent successes; however, the crane market has only recently begun to recover in terms of new equipment demand, and there still exists a supply and demand imbalance in many product ranges.

“We are working to improve our production rates by improving our supplier base to ensure that our products are the timely, reliable and cost- effective equipment our customers expect. There are stories published every day regarding the massive infrastructure expansion being undertaken globally that will require cranes, among other pieces of equipment.

“This demand, from China to the Middle East, as well as Europe and a newly recovered North America, is unlikely to soften in the near future, and adds to our confidence that Terex Cranes can achieve a 10% operating margin in the foreseeable future.”

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