Terex sales more than halve

Terex Corporation reported second quarter sales of US$ 1.3 billion, down -55% on the US$ 2.9 billion recorded for the same period last year. Alongside reduced sales, Terex recorded a second quarter operating loss of -US$ 77 million, down from a US$ 236 million operating profit 12 months ago.

"The turmoil from the ongoing recession continues to deeply impact sales for our industry," said Ron DeFeo, chairman and CEO.

With aerial work platform sales down -72%, and construction equipment sales down -68%, the best performing division of Terex was cranes. However, even their sales dropped -41% from US$ 833 million for the second quarter of 2008 to US$ 491 million for the same quarter this year.

Mr DeFeo said, "Certain markets such as aerial work platforms and materials processing have now stabilised, but at low levels, but other markets such as mining and large capacity cranes have begun to weaken."

Despite the tough climate, Mr DeFeo believes Terex is well positioned to, "weather the current economic storm.

"Our capital markets activity, plus cash generated from operations resulted in an improved cash position of US$ 939 million with a further US$ 486 million available through borrowings," said Mr DeFeo. "This means we are increasingly well positioned despite the market environment."

Outlook

Terex expects full year 2009 sales to decline by -50% on 2008 to approximately US$ 4.9 billion, down a further -5% on what the company previously gave as guidance. "The anticipated further decline in sales reflects weak global markets combined with continued constrained credit availability worldwide," said Mr DeFeo.