Terex Cranes’ sales rose 7% in 2004, compared with 2003, thanks to exchange rates and strong demand for tower cranes. The underlying trend, however, excluding the impact of foreign exchange movements, was flat.
There were signs of an upturn in the fourth quarter, though, when crane revenue was up 23% on fourth quarter revenue of 2003. By the end of the year the order backlog was $249m.
Parent company Terex Corporation saw its total revenue reach approximately $5bn, up more than 28% on the $3.9bn group sales of 2003. The company forecasts revenue in the region of $5.5bn for 2005, on course for its $6bn target for 2006. (‘Six in 06’ is an internal company slogan.)
‘Overall, 2004 was a very good year for Terex, reflecting generally strengthening end markets, although some of our businesses have yet to recover,’ said chairman and CEO Ron DeFeo. ‘For the first time in Terex’s history, we recorded revenue of approximately $5bn, and we continue to see an operating environment that is poised to produce another year of significant growth as evidenced by our backlog of approximately $989m at the end of 2004. We have continued to focus on our balance sheet, having reduced net debt by $122m [down to $772m] since the end of 2003.’
Terex’s full financial results for 2004 will not be published until an internal review of accounting procedures has been completed. This review was initiated in Octoebr 2004 after discovering that its financial statements for 2001, 2002 and 2003 needed to be restated because of the way that intercompany transactions had been treated. The company has since discovered that its 2000 results also need restating.
‘We feel that the company is taking the proper steps to correct its financial control procedures and practices to ensure the integrity of our financial statements,’ DeFeo said.
