Net sales in the Terex Cranes group for the second quarter of 2005 increased to $341.5 million from $276.9m in the same period a year earlier. The company said this reflected improvement in all businesses, particularly in tower cranes.
Income from operations increased to $15.7m for the second quarter of 2005 from $12.3m a year earlier.
“The Terex Cranes group continued its improvement over last year’s performance,” commented Steve Filipov, president – Terex Cranes. “As in the first quarter of 2005, our business experienced an increase in sales due to generally improving market conditions. Our Italian, French, American, and Australian operations all posted substantially increased net sales when compared with their 2004 results. In North America, the growth was mainly attributed to recovering rough terrain and boom truck crane markets. Also positively impacting our business were the price increases we put in place late in 2004, which were intended to recover margin erosion over the past twelve months due to increased input costs.”
Filipov continued, “Much of the North American business struggled to meet our profitability expectations. We are actively pursuing sourcing initiatives to reduce the cost of components, with Terex’s Acuna, Mexico facility playing a vital role in this effort. Additionally, since March 2005, we have increased our direct workforce at our Waverly, Iowa location by over 40%, and as of June 27, 2005, we have started production at Waverly on a second shift. These actions should allow us to better absorb our overhead costs, begin to deliver some of our higher priced backlog, and position our business for the anticipated marketplace recovery.”
Terex Corporation’s net income for the second quarter of 2005 was $78.8 million, compared with $59.1m for the same period a year earlier. Net sales increased to $1,763.8m in the second quarter of 2005, an increase of 32% from $1,336.4m in the second quarter of 2004. Net debt at June 30, 2005 decreased by $139m from March 31, 2005 levels.
Ronald DeFeo, Terex’s chairman and chief executive officer, said: “We continue to make progress on our financial restatement process. While I am not able to provide closure to the process at this point, I believe I can state that resolution of this matter is a short time away. We again would like to stress that, although this has been a prolonged process, the expected impact on our stockholders’ equity at December 2003 will not be material.”
