Terex Corporation income up, sales down
By Alex Dahm02 August 2016
At Terex Corporation net sales in the second quarter of 2016 were US$ 1,297.7 million, down 10 % from the $ 1,442.9 million in the second quarter of 2015. Income from continuing operations was posted as $109.6 million, up 44 % from the $75.9 million on net sales of $1.4 billion in the second quarter a year ago.
Net sales for Terex Cranes in the second quarter of 2016 were $ 357.4 million, down 16 % from the $427.7 million of the same period a year earlier. For the first six months of 2016 sales declined almost 15 % to $664.7 million from $781 million in the first half of 2015.
For the first half of 2016 Terex Corporation total sales were $2,412 million, down 7 % from $ 2,599 million in H1 2015. For the first half of 2016 it posted a loss of $6.4 million against a net income of $87.5 million in H1 2015.
Commenting on the results, John Garrison, Terex Corporation president and CEO, said, “Our second quarter results reflect a company in transition. With the pending sale of our Material Handling & Port Solutions (MHPS) business and parts of our construction portfolio, we made several structural changes in the quarter. MHPS is now accounted for as a discontinued operation. Going forward, we will be a more focused company, centred around three segments: Aerial Work Platforms (AWP), Cranes, and Materials Processing (MP).”
Garrison added, “We continued to face challenging markets in the second quarter. The North American market for many of our AWP and Cranes products was lower than last year, as expected, which was reflected in both our sales and orders in the quarter. We grew AWP sales in Europe and parts of Asia, but not enough to offset the softness in North America. Our Materials Processing (MP) segment executed well and improved upon last year’s performance.
The Materials handling and Port Solutions segment is no longer included in Terex accounts and it is shown as a discontinued operation following its recent sale to Finnish crane maker Konecranes.