Terex access equipment sales fall 64%

24 April 2009

Terex reported that net sales in the first quarter of 2009 for its Aerial Work Platforms (AWP) segment were $228.5 million (€172.3 million), a fall of $436.2 million (€328.9), or 65.6%, from the same period in 2008. Excluding the effects of foreign currency exchange rate changes, the net sales decrease was approximately 64%.

AWP had an operating loss of $41.0 million (€30.9 million) during the quarter, compared to a profit of $108.7 million (€82.0 million) earned during the first quarter of 2008.

The company said demand is stable for large booms and ‘runabouts', but sales of core rental customer products -- mid-size booms (12 to 18 m), scissor lifts and telehandlers -- remain weak. Its order backlog fell 81.3% from 31 March 2008 and 13.5% from 31 December 2008.

Terex said that during the last twelve months demand has dropped up to 70% in certain Western European countries. It said end market demand has begun to indicate some stability, although at a low level.

AWP is continuing to reduce headcount, which is already down more than 40% worldwide, consolidating its manufacturing "footprint", slowing its China expansion, and growing the refurbishment business.

Ron DeFeo, Terex chairman and chief executive officer, said, "We are aggressively reducing costs, with manufacturing spending in the first quarter of 2009 down 39% from the peak spending level in the second quarter of 2008...The short-term goal is to focus on the loss-making businesses to achieve a breakeven or profitable level, while being cash flow positive for the overall company, even at these trough levels."

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