Terex Q3 2012 results feel EU crunch29 October 2012
Terex reported in its Q3 results that net income fell to $30.2m in this quarter, a 18.16% decline from $36.9m in the same quarter last year.
Terex's net sales for the third quarter were $1.82bn, up a marginal 1% from $1.80bn in the third quarter of 2012.
Quarterly sales were buoyed by a positive performance from its segments with highest sales in the third quarter, Aerial Work Platforms (AWP) and Material Handling & Port Solutions (MHPS) while Cranes sales were also favourable.
Not counting the financial impact of the September 2011 acquisition of Demag Cranes AG, net sales decreased approximately 8% from the comparable year-on-year period, the company said.
Backlog for all segments declined year-on-year, however, to $1,717.6m at September 30, 2012, a 20% decrease from the backlog in September 30, 2011.
The company noted the crane backlog declined owing to decreased spending among European governments during the Eurozone financial crisis.
The company noted that the impact was felt most for crawlers and all terrains.
"While quoting activity for mobile cranes has been stable, the Cranes segment backlog has been negatively impacted by certain European macro-economic factors including capital markets tightening and declining government spending, affecting crawler and all-terrain cranes specifically," it said.
Strong crane markets offsetting a tightened crane market in Europe were in North and South America, Australia and the Middle East, said Terex.
Net Crane segment sales were $394.6m in the third quarter, down -5.4% from $417.3m in the same quarter in 2011.
Our earnings this quarter are in-line with our expectations, and reflect our continued focus on price discipline and cost containment," said Ron DeFeo Terex Chairman and CEO.
"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 (MP) segments showed some softening.
"Overall, we remain optimistic that the end markets for many of our products will continue to improve."