Terex AWP sales rise 41.2% in 3rd quarter
By Murray Pollok22 October 2010
Terex Corp's AWP division reported a 41.2% increase in sales to US$280.9 million for the third quarter of 2010 and the division made an operating profit of $14.3 million, reversing the $49.5 million loss made in the same quarter a year ago.
The company said it had started limited production of aerial platforms at its new facility in China.
Terex said the North American market had begun to recover from historic lows, and South America and Australia continued to show good growth trends.
Tom Riordan, Terex president and chief operating officer, said; "Stable demand and fleet age issues are leading rental and utility customers to address equipment requirements as evidenced by recent orders.
"Furthermore, we have successfully captured additional market share in some developing markets and, while the impact is not yet material, we have begun limited production in China. Recent customer meetings have reinforced our confidence in an improved 2011 for AWP."
At the company's Construction division, sales increased by 38.5% to $286.0 million in the quarter, driven by increased demand for material handlers and trucks and for compact equipment in some products and regions. The division made an operating loss of $8.1 million, which is lower than the $50.9 million loss in the same quarter in 2009.
Mr Riordan said the division had completed the "hard work of undertaking a huge restructuring and, while we still have a few challenges ahead, next year looks like the turning point we expected."
Total Terex sales were $1056 million, an increase of 15.2% on the 2009 quarter. The improvements in the AWP and Construction divisions were augmented by a similarly improved result from the Materials Processing, where sales rose by 47.6%. However, these results were offset by a 15.4% fall in revenue at the cranes division, which is Terex's largest.
Group operating profit was $3.0 million in the third quarter, an increase of $103.3 million over the operating loss of $100.3 million in the third quarter of 2009.
Ron DeFeo, Terex chairman and chief executive officer, said; "Our third quarter operating results were mostly in line with our expectations, but with greater than anticipated Cranes weakness. Our Aerial Work Platforms (AWP) and Materials Processing (MP) results were solid, with positive order and backlog trends.
He said Terex expected the fourth quarter "to reflect continued strengthening trends in AWP, Construction and MP, with a weaker Cranes business than we had previously anticipated."