Terex Cranes net sales up 23%

25 April 2008

Net sales at Terex Cranes for the first quarter of 2006 increased $69.9 million (23%) to $368.7 million from $298.8 million in the first quarter of 2005. Terex said the increase reflected improvement in all businesses, and particularly strength in the North American crane market and the tower crane business.

Income from operations increased $20.8 million to $26.0 million, or 7.1% of sales, for Q1 2006, from $5.2 million, or 1.7% of sales, for the first quarter of 2005. Order backlog, at $634.2 million was more than double that in the same period 2005 of $307 million.

“The Terex Cranes segment continued to show strong revenue growth from its recent cyclical lows,” said Steve Filipov, president Terex Cranes. “Our first quarter net sales for the North American business, which has been struggling for the past few years, were approximately 90% higher than the same quarter the prior year, which was partially impacted by a strike at our Waverly, Iowa location. The tower crane business continues to operate well in a strong demand market, posting stronger than anticipated net sales increases versus the prior year. The international crane business, led mainly by our German business, as well as our Australian operations, had modest revenue growth, but improved profitability through better sourcing of components and pricing actions.”

Filipov continued, “Similar to 2005, we continue to see strong results from our tower crane business and our French operation, where we have a strong backlog. The North American business, specifically rough terrain cranes and boom trucks, have rebounded sharply in terms of demand compared with this time last year, and the backlog for our German large crawler cranes has increased, in response to large infrastructure projects being approved in Asia, the Middle East and Africa. Unlike last year, where orders from customers were scarce, we are now faced with the challenge of increasing production and component constraints as a limiting factor on net sales and profitability. Our management team has put together a plan that addresses the concern on the supply side, and the Waverly, Iowa facility is primed for an even stronger second quarter.”

For the whole Terex Corporation revenue was a record $1.75 billion, an increase of 21% over the same period 2005. Net income for the first quarter of 2006 was $80.6 million compared to $29.9 million for the first quarter of 2005.

Ronald DeFeo, Terex chairman and CEO, commented, “As announced last week, we are very pleased with the strong performance of our overall business, especially the fact that the recovery is becoming broad-based in terms of our contributing businesses.”

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