Terex Lifting is to use its growing market position to put further pressure on suppliers in a bid to cut costs further.
“Over the past five years we have grown our revenues tenfold and we are leveraging that position with our suppliers to obtain significant cost reductions over the next 12 to 18 months,” president Fil Filipov said.
Notice to suppliers came as first quarter figures showed Filipov to be on course to beat his stated goal of hitting $1bn in sales next year. Net sales for the first quarter of 1999 reached $241.1m, up 32% on the first quarter of 1998. The increase was due partly to acquisitions and partly to continued demand. Operating profit was up 33% to $24.5m, but operating margin remained flat at 10.1%. That figure can only be improved by raising prices or reducing costs, and Terex is committed to an aggressive pricing policy.
Group net sales for Terex Corporation rose 62% to $423m and net income rose 81% to $26m.
