Terex Quarterly Report Shows Crane Sales, Order Backlog Still High
October 26, 2007 • Strong global product demands, the foreign currency exchange, and the component shortage had an impact on Westport, Conn.-based Terex Corp.'s third quarter 2007 financial results. The company reported this week that income from continuing operations grew to $151.5 million from $105.6 for the third quarter of 2006. Net sales rose to $2.19 billion in the quarter, a 15.4 percent increase over the third quarter last year. Income from operations also rose 23.7 percent to $236.3 million in the third quarter of 2007 from $191.1 million in the third quarter of 2006.
According to Terex, global infrastructure spending continues to drive increased demand in many of our product categories, including cranes. The company's increase in net sales versus the prior year period was favorably impacted by approximately $83 million due to the effect of foreign currency exchange movement, primarily the strength of the Euro and the British Pound relative to the U.S. Dollar.
Net sales for the Terex Aerial Work Platforms segment, which includes Genie aerials and telehandlers, increased $25.7 million for the third quarter of 2007, or 4.8 percent, to $563.9 million. Excluding the impact of foreign currency exchange movement, net sales increased approximately 2 percent. Strong international demand, particularly an increase of approximately 46 percent in European net sales versus the prior year, drove the increase. North American market demand in the third quarter remained substantially similar to 2006 levels for aerial lift products with the exception of the telehandler product line, which decreased sharply as a result of continued weakness in the domestic residential market.
Net sales for the Terex Cranes segment for the third quarter of 2007 increased $97.6 million, or 22.8 percent, to $526.6 million versus the third quarter of 2006. Excluding the impact of foreign currency exchange movement, net sales increased approximately 16 percent. Global demand for the large crawler and mobile telescopic crane products remained at record levels, while the North American market was strong in the rough-terrain and larger truck crane product categories. Sales of boom trucks and smaller truck cranes were down compared to the prior year due to softer North American demand for these smaller cranes. However, Terex reports this has freed up capacity at the Waverly,
A backlog of orders deliverable during the next 12 months was reportedly $4 billion on Sept. 30, 2007, an increase of 73 percent versus the Q3 2006. The increase mainly reflected the continued increase in crane orders, which are outpacing Terex's ability to manufacture and deliver products to its customers. The aerial work platform backlog at Sept. 30 consisted largely of international orders.
