Terex Cranes Q3 rises on rates
By Alex Dahm25 October 2012
While net sales at Terex Cranes were down 5.4%, to US$ 394.6 million, in the third quarter of 2012, exchange rate gains translated that into a 2% increase over the same period a year earlier. Strong demand from North America, Australia, South America and the Middle East drove the increase, Terex said.
Income from operations in the third quarter of 2012 was $47.6 million, or 12.1% of net sales, compared with $25.1 million, or 6.0% of net sales, during the third quarter of 2011.
Strong growth in the Terex Material Handling & Port Solutions segment bodes well for Terex Cranes with the inclusion of Demag Cranes, (including Gottwald) acquired last year. Net sales in MHPS for the third quarter increased $85.6 million, or 22.2%, to $470.8 million over Q3 2011. Demag Cranes results were included for the full quarter in 2012 but only for half of the same quarter a year earlier as the acquisition was made in August 2011.
For Terex Corporation, net sales were $1.822 billion, a 1% increase from $1.804 billion in the third quarter of 2011. Excluding the impact of the Demag Cranes acquisition, net sales decreased 8%, of which 5.4% relates to foreign currency fluctuations, from the comparable prior year period, Terex said.
“The mix of performance was varied, with our Cranes, Aerial Work Platforms (AWP) and Material Handling & Port Solutions (MHPS) segments achieving favourable results, while the results of our Construction and Materials Processing (MP) segments showed some softening. Overall, we remain optimistic that the end markets for many of our products will continue to improve,” said Ron DeFeo Terex chairman and CEO.
“We now expect full year 2012 sales of approximately $7.5 billion and hold constant our full year earnings per share outlook for 2012 of $1.95 – $2.05 based on an average share count of approximately 114 million shares and excluding the impact of debt repayments, restructuring and unusual items.” DeFeo continued.