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Cranes dampen Terex’s rising sales

21 Jul 11 A doubling in sales at its Genie aerial work platform division helped Terex to a 38% increase in net sales in the second quarter of 2011. But cranes made a loss.

Scale models of the AC1000 are now shipping, but still not the real thing yet
Scale models of the AC1000 are now shipping, but still not the real thing yet

Net sales from continuing operations across the group were $1,488.2m in the second quarter, up from $1,079.9m in the second quarter of 2010.

Star performer was Genie, where sales increased more than $250m to $484.1m – helped by a 4.5% price increase late in the quarter. Hot spots were North American and Brazil, while demand in western European has also strengthened. Operating profit for the division of $28.2m, or 5.8% of net sales, was not as good as the company had hoped for.

The crane division, on the other hand, continues to suffer from soft demand in Europe and $33m was spent in the quarter on restructuring, pushing it into an operating loss of $34m.

Net sales for the cranes segment for the second quarter of 2011 increased 3.3% to $464.1m, but when adjusted for the impact of exchange rate movements, net sales decreased 5%. While rough terrain and truck cranes are recovery from the depths of recession, sales of all terrains are down on a year ago. The German AT crane factory has been hit by order cancellations and delays in shipping the new 1,000 tonne telescopic crane.

Net sales for the construction segment rose 29% year-on-year to $361.3m, driven by demand for material handlers and trucks, especially in developing markets like Russia and Latin America.

Across the group the backlog for orders deliverable during the next 12 months was $1,761m at 30 June 2011, up 57% on 30 June 2010 but down 2% from 31 March 2011.

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