Terex sees +21% sales rise

24 July 2008

Terex posted sales of US$ 5.29 billion for the first six months of 2008 - a record, and a +21% increase on the same period in 2007. In line with these positive sales figures, operating profit also jumped +38% from US$ 288 million in first half results of 2007 to US$ 399 million for six months in 2008.

“Our product and geographic diversity is illustrated in these results,” said Ron DeFeo, Terex Chairman and CEO. “The cranes and materials processing and mining (MPM) segments grew dramatically and through the development of global infrastructure we continue to see significant growth in developing markets too.”

On the basis of these first half results Terex expects overall 2008 performance to remain within previously announced figures, with predicted net sales of between US$10.5 billion and US$ 10.9 billion.

On a sector-by-sector basis, net sales in the Aerial Work Platforms (AWP) Division increased +5.1% in the second quarter despite difficult trading conditions in Western Europe and an “as expected” US performance. Markets in the Middle East, Eastern Europe, Russia and Brasil continued to expand in response to ongoing construction and infrastructure spending, along with a tightening of safety standards for work at height.

The construction sector showed even stronger growth in the past 3 months with a +23.6% increase in net sales over the same period in 2007 to US$ 621 million. Reflecting the AWP trend of strength in the Middle East, Eastern Europe, Russia and Brasil and tough trading in the US and Western Europe, demand remained high for rigid frame dump trucks and material handlers, whilst compact construction equipment sales slowed.

Terex Cranes earned a +48.7% increase in net sales in the second quarter, over the same period last year, to hit US$ 810 million. The growth in global infrastructure and energy demand drove crane sales, particularly the larger capacity lattice boom crawler, tower and rough terrain markets.

The MPM segment witnessed second quarter sales of US$ 681 million, a +32.2% increase on the same period last year, and with a +4% improved operating margin on the same period in 2007 the sector enjoyed strong growth in both the mining and materials processing fields.

The road building, utility products and other division (RBUO) enjoyed a +13.3% increase in the second quarter of 2008 over the same period in 2007 to post sales of US$ 191 million. Not helped by difficult trading conditions in the US road building sector, the division was strengthened by the utility products which demonstrated an upward trend.

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