Terex AWP sales up 24.7% in second quarter

Terex AWP reported a 24.7% increase in sales to US$605.7 million for the second quarter of the year with operating profits tripling to US$83.2 million, fuelled by North American rental buying and a strong Australian market.

Terex said profits were driven by higher prices and improved manufacturing efficiency because of higher volumes, which partly offset higher input costs.

The division's backlog of US$511 million was 14% higher than a year ago but down 24% from the end of the first quarter, reflecting heavier order patterns at the start of the year in the rental sector.

Overall, Terex Corp saw sales increase by 35.2% to $2.01 billion, although this increase reduces to 11% when the acquisition of Demag Cranes AG is excluded. Profits from continuing operations were $83.6 million for the quarter compared to $0.9 million in the second quarter of 2011.

Ron DeFeo Terex chairman and CEO, said; "Our Aerial Work Platforms (AWP) and Cranes segments had strong performances and are well positioned for continued improvement in the second half of the year...Overall, we believe the strength in our AWP and Cranes segments, as well as in North America and select other markets like Australia, will offset the weakness we expect to experience in certain markets during the second half of the year."

The company is forecasting full-year sales of between $7.5 and 7.8 billion, with profits of between $222 and $234 million.