Terex Reports 19-Percent Increase in Sales for 2007
February 22, 2008 • Terex Corporation,
For the full year 2007, the company reported income from continuing operations of $613.9 million, or $5.85 per share, compared to income from continuing operations of $396.5 million, or $3.85 per share, for the full year 2006. Net sales for Terex totaled $9.1 billion in 2007, an increase of 19.5 percent from $7.6 billion in 2006.
"For Terex, 2007 was a very strong year in terms of financial performance, with our best sales quarter of the year coming in the fourth quarter,” said Ron DeFeo, Terex chairman and CEO. “This was a transformational year for our company, as it demonstrated that the changes made as part of the journey we embarked on a few years back are taking hold and working."
DeFeo said net sales grew 19.5 percent when compared to 2006, even as certain product lines face challenging market conditions in their particular niche. “We have benefited from strong global markets, as well as a relatively small exposure to the U.S. housing market; in fact non-U.S. net sales represented 70 percent of our total net sales for the full year 2007,” he said.
"Reflecting on where we are today with respect to our objective of $12 billion in sales and a 12 percent operating margin by 2010, we feel we are ahead of our original timeline,” DeFeo said. “And while news headlines continue to broadcast slowing economic conditions in North America and Western Europe, we remain optimistic about prospects for our businesses in both of these markets and continue to see very healthy indicators for continued economic expansion from the developing markets, notably in Asia, Eastern Europe and the Middle East."
Net sales reached more than $2.5 billion in the fourth quarter of 2007, an increase of $556.8 million, or 27.4 percent, from the fourth quarter of 2006. Global infrastructure spending continues to drive increased demand in most of the company's product categories, particularly cranes, mining, and materials processing equipment, as well as the continued strength of the aerial work platforms product category in
Net sales for the Terex Aerial Work Platforms (AWP) segment for the fourth quarter of 2007 increased $71.9 million, or 14 percent, to $585.9 million versus the fourth quarter of 2006. Excluding the translation effect of foreign currency exchange rate changes, net sales increased approximately 9 percent. Strong international demand continues to drive higher sales volume. Demand for scissor and boom lifts has increased in
Net sales for the Terex Cranes segment for the fourth quarter of 2007 increased $161.2 million, or 32.1 percent, to $663 million versus the fourth quarter of 2006. Excluding the translation effect of foreign currency exchange rate changes, net sales increased approximately 22 percent. Strong global demand for large crawler cranes and mobile telescopic cranes continues at unprecedented levels, the company reported. In the North American market, rough-terrain cranes continue to be in high demand, while sales of boom trucks and smaller truck cranes were down as compared to the fourth quarter of 2006. Supplier constraints, particularly in
"We are poised to have another record financial performance in 2008," said DeFeo. "We expect generally strong global markets to continue to drive demand for our equipment. Add to that our expectation that we will have the ability to produce at greater volumes and with improved productivity, and 2008 looks to be a significant step forward towards our corporate 2010 objective. It is our expectation that Terex's total revenue for 2008 will be between $10 and $10.5 billion, and earnings per share in the range of $6.65 to $7.15 per share.”
