Terex targets 24% growth in 2010 with aerials recovery lagging
18 February 2010
Terex Corp made a net loss of US$114.8 million in the fourth quarter of the year with its AWP and Construction divisions being the worst performers, making operating losses of $32.6 million and $89.6 million, respectively.
The company said it expects 2010 to remain challenging, with any recovery likely to take place in the second half of 2010 and with the aerial work platform division unlikely to see a pick-up before early 2011.
Total group sales for the quarter were down 36% to $1058 million and sales for the full year were $4.04 billion, a decrease of 51.8% from $8.39 billion in 2008 (excluding the Mining business that was sold late in 2009). The company recorded a net loss of $450.7 million for the year.
Sales for the AWP segment for the fourth quarter fell 48.1% to $204.8 million and revenues for the full year were 65% down at $838.1 million. Sales for the Construction segment in the fourth quarter decreased 41.0% to $234.1 million.
Ron DeFeo, Terex chairman and chief executive officer, said the company had weathered "one of the most challenging years ever for our industry and our Company" and that he expected 2010 to remain challenging for the company, with the expectation of continued losses in the first half of 2010 before returning to profitability in the second half of the year.
Terex forcecast a 24% increase in sales to approximately $5.0 billion in 2010. It expects the Materials Processing division to see improvement first with compact construction following, starting in North America. The Aerial Work Platforms division is likely to remain at current levels for most of the year and pick up in early 2011, said Terex.
"We have begun the process of changing our focus from cash management to growth. We see relative stability in our end markets and believe we need to capture market share in order to grow", said Mr DeFeo, "To do this, we will introduce several new products across a range of our businesses and complete new factories in India and China that will support our business later in 2010 and beyond."