Terex revises downwards its 2008 full year guidance

By Murray Pollok03 February 2009

Terex Corp has revised downwards its full year guidance for 2008. In now expects earnings to be approximately 5% below the low end of its previous guidance of between US$5.69 and $5.79 per share. Terex's earnings per share in 2007 were $5.85.

Terex chairman and chief executive officer Ron DeFeo said the global economic downturn had a greater impact on its fourth quarter than it had anticipated and that it continued to see input cost pressure; "We continue to feel the negative effect that credit availability has on customer sentiment and demand for our products, particularly in our Construction, Materials Processing and Aerial Work Platforms businesses, as well as our smaller crane and tower crane product lines.

Mr DeFeo said Terex continued to take "aggressive" actions to reduce costs and inventory levels; "Our actions include reductions in force, significantly curtailed production schedules in affected businesses, including temporary and permanent factory shutdowns, facility consolidations, the rescheduling of incoming raw materials and reducing executive compensation costs."

Terex also said that it will record a non-cash impairment charge of approximately $600 million covering the company's goodwill and other assets mainly related to its Construction, Roadbuilding and Utilities businesses.

The company will report its fourth quarter and full year 2008 results on Wednesday 11 February after the close of markets.

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