Terex Cranes Q4 up 44%, profit up 102%

Net sales in the Terex Cranes segment for the fourth quarter of 2006 increased US$153.9 million to $501.8 million from $347.9 million in the fourth quarter of 2005. The growth reflected improvement in all crane product categories and expansion in Asian markets, Terex said. Terex's acquisition of a controlling 50% interest in Chinese crane manufacturer ChangJiang in April 2006 accounted for about 18% of the growth in net sales in the fourth quarter. Gross margin for the quarter was 19.0%, compared to 16.4% in the same period of 2005.

“The Terex Cranes segment had a terrific quarter, achieving an operating margin in excess of 10% for the first time in many years. Additionally, revenue growth continued to be robust, increasing over 44% versus the comparable period in the prior year, highlighting the continued increasing global demand for our products and our improving ability to meet this demand,” commented Steve Filipov, president, Terex Cranes. “More importantly, operating profit for the quarter grew approximately 102% versus the prior year's results.”

Filipov continued, “Our backlog, besides highlighting the strong business environment in which we operate, also illustrates issues that we continue to face as we increase our production schedule. Our customers need our products right away, and we continue to struggle with the limited supply of certain components. We are working diligently to eliminate the production bottlenecks at our various locations and to better utilize the space we have and implement lean principles in order to improve overall production rates.”