Chairman and chief executive officer Ron DeFeo said, “The cranes and mining businesses continue to grow, in particular in developing markets, where we expect current positive trends to continue.”
In a statement, the company said: “Global demand continues to be oriented towards higher margin, larger capacity cranes. Supplier constraints in Europe for select components, such as hydraulics and gear boxes, have improved, as have welding and assembly capacity constraints. Demand is expected to remain strong for the foreseeable future for larger capacity cranes, but due to the uncertain outlook for the global economy, capacity expansion plans are being carefully reviewed.”
Terex reported that net sales for the cranes segment for the June to September 2008 period increased 36.2% versus the third quarter of 2007, to USD 717.4 million. Excluding the translation effect of foreign currency exchange rate changes, net sales increased approximately 26%. Demand remains strong for larger capacity cranes, particularly larger capacity lattice boom crawler cranes, tower cranes and rough terrain cranes, driven by global infrastructure and energy projects. The market in North America continues to remain strong for large capacity cranes, but sales of smaller capacity cranes, including boom trucks and lower capacity truck cranes, remain soft.
It also said that operating results for the third quarter of 2008 include a charge for a crane repair program of $15 million.
Terex’s total net sales in the June to September period reached $2,514m, up 14.5% over the third quarter of 2007. It said that continued strong demand in the cranes and materials, processing and mining segments were the primary drivers of the increase, partially offset by a decline in the aerial work platform segment.
