Terex AWP sales increase 66.3 percent in fourth quarter

10 February 2011

Terex Corp.'s AWP division reported increased net sales for the fourth quarter of 2010 by $135.8 million, or 66.3 percent, to $340.6 million versus the fourth quarter of 2009.

The company said the North American market continued its recovery with increased capital expenditures from rental companies, and the US is showing a specific rebound in demand for aerial work platform equipment.

Latin American markets are driving boom and telehandler sales for Terex Corp., with Brazil more than doubling the AWP segment's revenue in the region on a sequential basis. Also contributing to the increased net sales in the quarter was the sale of a portion of the segment's utility rental fleet in the US.

"The foundation of a business recovery has become visible to us, although we are in the early stages," said Ron DeFeo, Terex chairman and chief executive officer. "As anticipated, we see improved demand in our early cycle product categories of Aerial Work Platforms (AWP) and Materials Processing (MP). Our Construction segment is seeing positive demand from certain markets, such as Central Europe and Brazil... We continue to restructure this business and expect it to return to profitability in 2012."

Operating profit in the fourth quarter was $11.7 million, or 3.4 percent of net sales, as compared to an operating loss of $32.6 million, or 15.9 percent of net sales, incurred during the fourth quarter of 2009. Operating results benefited mainly from increased sales and manufacturing cost absorption from increased production levels, as well as better pricing on used equipment. These improvements were slightly offset by increased material costs.

"For Terex, 2010 was clearly a transitional year as we rebounded from the trough levels of 2009 and completed the sale of our Mining business," DeFeo said. "We have seen order rates accelerate throughout 2010 for most of our businesses... Markets in Latin America, India and China are driving large crane and off-highway truck equipment demand. Markets such as the Americas and Western Europe have shown a marked rebound in demand for smaller equipment, namely aerial work platforms in the United States and compact construction equipment in Germany, central European countries and Latin America."

As a whole the Terex Corp. for 2010 reported a loss of $215.5 million on net sales of $4.42 billion, about half the $407.5 million loss on net sales of $3.86 billion for the full year 2009.

"Our current outlook for net sales in 2011 is $5.0 billion to $5.4 billion, an increase of roughly 13-22 percent from 2010," DeFeo said. "Our expectation for income from operations is a profit of $220 million to $250 million."

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