Sales and backlog leaps at Terex

By Euan Youdale30 April 2008

Terex Cranes reported strong growth in the first quarter of 2008 with a 26% increase in sales over the same period last year. That amounts to a US$131.4 million growth to $632.2 million.

Excluding the translation effect of foreign currency exchange rate changes, net sales increased by about 15.4%, said the company.

“Very strong global demand, particularly for large crawler cranes and mobile telescopic cranes, continued to drive robust sales and order activity. Growth in rough terrain crane sales in the quarter reflected North American and Middle East market strength, particularly from the energy sector. Sales of boom trucks and smaller truck cranes in North America remained under pressure,” added Terex.

Operating margin increased to 13.6%, $85.8 million, up from the 10.6% reported in the first quarter of 2007. This is partly thanks to more streamlined manufacturing, said Terex. However, supply constraints, particularly in Europe, and capacity limitations in terms of welding and assembly space, extended delivery lead times.

As of 31 March 2008, the whole Terex group’s order backlog for the next 12 months was $4.8 billion. This is an increase of about 41.1% on the first quarter of 2007, and a rise of 15.2% against the 31 December 2007 level.

“The increase versus the prior year’s first quarter was aided substantially by the continued strength of crane orders, which are outpacing the company’s ability to manufacture and deliver products to its customers,” explained Terex.

Gross profit for the 2008 quarter was $140.3 million in the crane segment, a 22.2% increase over the same 2007 period.

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