Steve Filipov, president and ceo of Terex Cranes, said: “As in the first half of this year, our global presence continues to help balance our performance in the third quarter. The North American market, however, has shown signs of demand improvement. The backlog is strong, and the order book continues to grow. We now need to increase our production rate.
Filipov said that Terex Cranes was focusing on lean implementation, better purchasing, and customer service.
“Additionally, the Waverly, Iowa team initiated an additional price increase of roughly 5% to help offset cost pressures. We continue to see improvements in our other product ranges, including the tower crane business, and an improving all-terrain crane global market,” he added.
Filipov claimed that his company’s under-300t lattice boom crane relationship with IHI is a real success.
He said: “This month, Terex will be delivering the 300th crawler crane sold under this relationship. This product, combined with our 300t and up range out of Germany, has made Terex one of the market leaders in this category.”
Terex Corporation announced net income for the third quarter of 2005 of $54.4m ($1.06 per share) compared with $46m ($0.89 per share) for the third quarter of 2004. Excluding the impact of special items, net income for the third quarter of 2005 was $56.1m ($1.10 per share), compared with $47.8m ($0.93 per share) a year earlier. Special items for the third quarter of 2005 included charges for investigation costs associated with the company’s internal review, and the restatement of its financial statements for the fiscal years 2000, 2001, 2002, and 2003, and the first and second quarters of 2004.
“Overall, Terex had a strong third quarter,” said Ron DeFeo, Terex’s chairman and chief executive officer. “We are pleased with our operational and financial performance, which reflects continued positive end-market trends for many of our products and builds on the operational improvements we have undertaken to date. We are seeing more meaningful signs that the struggling businesses in our portfolio are in the early stages of recovery, while at the same time our stronger businesses continue to post even better results than originally anticipated.”
DeFeo continued: “We continue to operate in a challenging environment. We view these challenges as opportunities to deliver even stronger results in the future. Supplier issues, most notably, but not exclusively, steel and tires, resulted in cost pressures and shortages impacting several of our products. Couple these issues with the overtime needed to meet customer demand, and we have good but difficult problems to solve.”
DeFeo said Terex remained optimistic about our earnings outlook: “For 2005 we are forecasting the full year earnings per share to be in the range of $4.15 – $4.25, as compared to our prior guidance of $3.90 to $4.10, both before special items. Our revenue expectations for 2005 are towards the high end of the $6 to $6.2 billion range… We continue to believe that there are significantly better days ahead for Terex.”
