Terex Corp. posted net sales of $1.822 billion in the third quarter, compared with $1.803 billion the previous year, a 1-percent increase. For the nine months ended Sept. 30, the revenue total was $5.653 billion compared with $4.548 billion, a 24.2-percent hike. Excluding the impact of the acquisition of Demag Cranes AG, net sales decreased about 8 percent compared to the previous third quarter, of which 5.4 percent stemmed from foreign currency fluctuations.
“Our earnings this quarter are in-line with our expectations, and reflect our continued focus on price discipline and cost containment,” said Terex chairman and CEO Ron DeFeo. “The mix of performance was varied, with our Cranes, Aerial Work Platforms and Material Handling & Port Solutions segments achieving favorable results, while the results of our Construction and Materials Processing segments showed some softening. Overall, we remain optimistic that the end markets for many of our products will continue to improve.
“The continuing strength in many of our markets, combined with our persistent focus on margin improvement, cash generation and the integration of our MHPS segment, provide us with continued confidence for favorable long-term growth and profitability. However, macro events have created some near-term softening of demand and uncertainty for our Construction and MP segments. In addition, order timing and seasonal order patterns have impacted our AWP segment on a near-term basis. This is apparent in the backlog for these segments.”
DeFeo said Terex expects full-year sales of about $7.5 billion, with earnings per share of $1.95 to $2.05 based on an average share count of about 114 million shares and excluding the impact of debt repayments, restructuring and unusual items.
“We do not view this near-term uncertainty as evidence of a protracted slowdown,” DeFeo added. “We will remain focused in 2013 on margin improvement and cash generation, as well as the integration of MHPS into our global team. When combined with approximately $44 million in reduced interest expense associated with recent debt repayments and re-pricing, we expect 2013 to be a year of moderate top-line growth along with meaningful improvement in earnings per share and return on invested capital.”
Net sales for the AWP segment for the third quarter of 2012 increased $77.4 million or 17.2 percent to $526.1 million compared to the third quarter of 2011. Continued replacement demand in the North American rental channel combined with some evidence of fleet growth for aerial work platforms drove this increase, the company said. Net sales from an acquired business and moderate growth in European and Latin American markets contributed to the increase as well. Income from operations in the third quarter was $59.3 million, compared to $27 million during Q311, more than double. Terex recently announced an average price increase of 3.4 percent effective for deliveries beginning in January of 2013.
Net sales for the Construction segment decreased 26.6 percent or $105 million year over year to $290.4 million. End markets for many of the segment’s products softened, particularly in Western Europe. The global demand for material handlers was soft and demand for trucks and compact construction equipment also softened.
Net sales for the Cranes segment in the third quarter also decreased $22.7 million of 5.4 percent to $394.6 million, although net sales increased 2 percent adjusting for the effects of currency changes. Demand was strong in North America, Australia, South America and the Middle East.