Overall, income from continuing operations for the third quarter of 2007 was $151.5m, or $1.45 per share, compared to income from continuing operations of $105.6m, or $1.02 per share, for the third quarter of 2006.
Terex chairman and CEO Ron DeFeo said, “We are committed to achieving our previously stated objective of $12bn in sales and a 12% operating margin by 2010. We anticipate that acquisitions will be a part of this growth strategy, and with the recent volatility in financial markets, we are uniquely positioned to take advantage of opportunities as they arise, as well as continuing to invest in expanding our infrastructure in developing economies.”
Net sales reached $2,196.5m in the third quarter of 2007, an increase of $292.8m, or 15.4%, from $1,903.7m in the third quarter of 2006. The company said the increase in net sales versus the prior year period was favourably impacted by approximately $83m due to the effect of foreign currency exchange movement, primarily the strength of the Euro and the British Pound relative to the U.S. Dollar.
Discounting currency exchange movement, net sales in the crane segment increased approximately 16% year on year. Global demand for the large crawler and mobile telescopic crane products remained at record levels, while the North American market was strong in the rough terrain and larger truck crane product categories, the company said.
Sales of boom trucks and smaller truck cranes were down as compared to the prior year as a result of softer North American demand for these smaller cranes. This has freed up capacity at the Waverly, Iowa facility to increase production of higher capacity, higher margin rough terrain cranes which remain in high demand. The production issues of a stressed supply chain and capacity limitations in terms of welding and assembly space continued to extend lead times for deliveries and temper net sales growth.
