Terex Q2 revenues up +10%

Terex’s sales for the second quarter of the year were US$ 2.06 billion, a +10.4% rise on the same period in 2013. The company made a net profit of US$ 140 million in the three-month period, compared to just US$ 21 million a year ago.

Terex Chairman & CEO, Ron DeFeo said, “Our results for the second quarter and first six months of the year were mixed both from a business and geographical perspective. Our Aerial Work Platforms (AWP) segment had a strong quarter but margins were slightly lower than a year ago due to product mix and planned investments in new product development and manufacturing footprint.

“Our Cranes segment is making progress, as bookings were roughly equal to net sales during the quarter and the order entry run rate was 12% above the prior year level on a year to date basis.

“Our Construction and Material Handling & Port Solutions (MHPS) segments both delivered quarters roughly in-line with our expectations, while the Materials Processing (MP) segment had a more challenging quarter from a sales perspective than originally anticipated.

“From a geographical perspective, Western Europe and North America were the growth drivers with increases of 35% and 15% respectively, with the rest of world somewhat offsetting these strengths.”

The AWP business, which markets products under the Genie brand, was the largest of Terex’s divisions over the quarter, with sales of US$ 718 million, a +18% increase on a year ago. This was followed by the US$ 504 million cranes division, which was down -3% on last year, and the US$ 431 million (+17%) MHPS business.

The Terex construction division had sales of US$ 227 million – almost unchanged on a year ago, while the materials processing divisions revenues of US$ 183 million represented a +4% increase.

Commenting on the outlook for the company, Mr DeFeo said, “We expect continued strength from our AWP segment and improvement from our Cranes and MHPS segments to drive improved performance for the second half of 2014 compared with the first six months. While we see a slightly weaker end-market than we originally anticipated, from an EPS perspective, the impact on operating earnings is expected to be somewhat offset by both a lower effective tax rate and a lower anticipated share count. We reiterate our annual outlook for earnings per share of between $2.50 and $2.80, excluding restructuring and other unusual items, although now on net sales of between $7.3 billion and $7.5 billion.”