After stating that the third quarter just completed was one of the most difficult he had experienced in his 17 years with Terex, chairman and CEO Ron DeFeo told listeners to the company’s conference call that Terex has “turned the corner.”
“Certainly the feeling of positive momentum is not yet seen in our results, and many of our customers continue to suffer from a lack of work and for our dealers and rental companies, a lack of financing,” said DeFeo. “Furthermore, we continue to face the challenges of pricing pressure, bad debt, inventory write downs and idle equipment. However, the corner we think is being turned and there is a sense that in places away from the United States that business is clearly returning. This is the case in India, China and in South America.”
While acknowledging that those markets cannot offset the steep declines in Europe and the United States, DeFeo said, “We do see some positive signs in Europe and as conditions remain stable, we would expect to be growing again in the United States in 2010.”
DeFeo added that Terex set the stage to be able to benefit by setting a course to manage for cash and not focused on earnings. “Survival of the enterprise was primary, knowing the strong franchises that we have will come back to life as the flood tides ebb,” he added. “I expect this is what we will experience in 2010, and we will see a blossoming of our business in 2011.”
