John L. Garrison, Terex president and CEO, said: “We continued to face challenging markets in the second quarter. The North American market for many of our AWP and Cranes products was lower than last year, as expected, which was reflected in both our sales and orders in the quarter.”
The company said that the performance of tower cranes was steady, while turnaround is needed in mobile cranes. It also highlighted that production volume and mix has been impacting utilities margins.
Year-to-date net sales of cranes stood at $664.7m, down from $781m in the same period in 2015.
Overall, Terex reported a 10% fall in sales, which amounted to $1.3bn. The company announced the simplification of its manufacturing footprint and a reduction of its cost base.
Garrison said: “Our second quarter results reflect a company in transition.With the pending sale of our Material Handling & Port Solutions (MHPS) business and parts of our Construction portfolio, we made several structural changes in the quarter. MHPS is now accounted for as a discontinued operation. Going forward, we will be a more focused company, centered around three segments: Aerial Work Platforms (AWP), Cranes, and Materials Processing (MP).
“After the sale of MHPS, Terex will be a smaller company. We are committed to reducing our cost structure accordingly."
