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Terex's CEO Discusses Q4 2011 Results - Earnings Call Transcript

Stocks in this article: TEX

In 2011, we recaptured growth in our core businesses with organic growth of 27% for the full year and overall net sales growth of 48% inclusive of acquisitions. However, for Terex in 2012 emphasis is clearly on margin improvement, cash generation and the integration of Demag Cranes AG is much less of our growth.

Now, I'd like to discuss the market environment by segment on Page 4. The Aerial Work Platform business continues to recover with North America leading the way. Business with the largest rental companies is strong and we're now seeing independent and smaller regional players buying again. Our European AWP business has been a little bit better than we expected. In general we've been successful implementing a 4.5% price increase effective with shipments in January. The overall backlog remains strong, double last year's level.

The construction products market outlook is generally positive, but North American housing and road building markets will remain weak in 2012. We expect continued solid demand for our material handlers mainly for the scrap steel market. The demand outlook for our Artic and rigid truck business is expected to improve and the compact business is slowly getting better.

In general, a solid market where we can concentrate on margin and cash generation. The global crane market will be stable to positive. China is hard to predict right now, North America will be up strongly and Europe is a mixed picture by country. Australia remains very positive and is the specialty market. Latin America will continue to be strong in 2012.

The port equipment business that is captured underneath our crane category these products are strengthening although as you know, the sales gestation period for these products is quite long. We're happy to highlight that after starting 2011 off quite poorly in Terex Port equipment, we did exit the year with a profitable quarter as we had promised.

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