Terex Corp. CEO Ron DeFeo last week said the latest Wall Street turmoil is driving up financing costs for customers who borrow to buy construction equipment, ultimately cutting into sales.
United States sales make up about a third of Terex’s annual sales of about $10 billion.
Terex recently lowered its forecast for 2008, announcing that it expects to earn about $6.35 to $6.65 per share on sales of $10.2 billion to $10.6 billion. It had previously forecast a profit of about $6.85 to $7.15 per share on sales of $10.5 billion to $10.9 billion.
However, DeFeo said he still expects Terex to make its ‘12 by 12 in 10’ goal — $12 billion in sales and 12 percent operating margins by 2010.