Orders and backlog up at Terex Cranes
26 February 2008
Sales at Terex Cranes were US$ 527 million for the third quarter of the year – a $98 million, or 23% increase on the same period in 2006.
A statement from Terex said, “Global demand for the large crawler and mobile telescopic crane products remained at record levels, while the North American market was strong in the rough terrain and larger truck crane product categories.” Although it went on to say demand for smaller cranes had weakened in the US, this has allowed Terex to use the spare capacity to increase production of bigger units at its Waverly, Iowa factory.
Despite this, Terex Cranes' order backlog stood at $1.74 billion at the end of September – 71% higher than it was 12 months prior, and 23% higher than it was at the end of June this year. At current production levels this equates to just less than 10 months of manufacturing work for the division.
Terex acknowledges that increasing waiting times are a problem. Commenting on the last three months it said, “The production issues of a stressed supply chain and capacity limitations in terms of welding and assembly space continued to extend lead times for deliveries and temper net sales growth.”
Terex Corp as a whole saw its revenues hit $2.20 billion for the third quarter of the year – a 15% increase on the same period in 2006. Profits grew faster than sales, with the company making an operating profit of $228 million for the quarter – 29% higher than Q3 2006. Its profit per share for the quarter was $1.45, compared to $1.02 for Q3 2006 – a 42% improvement.
Terex says it expects its sales for the full year to be between $8.8 billion and $9.0 billion, with earnings per share between $5.50 and $ 5.70. Looking further ahead, the company sees a bright future for the next three years.
Chairman and CEO Ron DeFeo said, “We are a company that is poised for continued strong and profitable growth. We are committed to achieving our previously stated objective of $112 billion in sales and a 12% operating margin by 2012. We anticipate that acquisitions will be part of this growth strategy.”