Terex AWP targets almost trebling of sales by 2015
By Murray Pollok07 October 2011
Terex Corp said it wants its AWP division to almost treble its sales by 2015, with ambitious sales targets of US$2.5 billion by 2013 and $3.0 billion by 2015.
Terex AWPs highest historical sales were $1.9 billion in 2007 and it had revenues of $1.1 billion last year.
The targets, contained in its published presentation for the Deutsche Bank Securities Inc Leveraged Finance Conference on 13 October, rely on a combination of increased sales to developing markets and on a recovery of its existing markets in North America and western Europe.
Terex forecasts that 63% of the additional $1.9 billion in revenues in 2015 - equivalent to $1.2 billion - will come from established markets; 25% ($475 million) from developing areas, and 5% ($95 million) from new products.
The company said its analysis of business indicators indicated that a sustained recovery was under way and that its rental customers were seeing improvements in pricing and utilisation.
Terex will be basing its growth projections also on the scale of fleet investment that will be required to replace the large numbers of machines bought between 2005 and 2008.
Increased sales to developing markets are also a significant component of the projected growth. Terex AWP's sales to markets outside of Western Europe and North America were $286 million in 2010, although that includes mature access markets such as Japan and Australia.
Taking that into account, and given the target of increasing sales in developing areas to $475 million by 2015, it would suggest that Terex is hoping for sales to developing markets to treble to around $700 million.