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Terex Announces Second Quarter 2012 Results

Stocks in this article: TEX

Terex Cranes : Net sales for the Cranes segment for the second quarter of 2012 increased $20.1 million, or 4.3%, to $484.2 million versus the second quarter of 2011. Adjusting for the translation effect of foreign currency exchange rates, net sales increased approximately 12% from the comparable prior year period. Strong demand for rough terrain cranes and improving demand for all terrain cranes continued in North America, the Middle East and Latin America, as well as general strength in Australia.

Income from operations in the second quarter of 2012 was $43.5 million, or 9.0% of net sales, as compared with a loss from operations of $34.0 million, or 7.3% of net sales, during the second quarter of 2011. Operating results benefited from improved price realization and cost reduction actions implemented in the prior year. The 2011 results included charges of approximately $36 million in restructuring and related charges.

Effective July 1, 2012, the port equipment business currently reported as part of the Cranes segment will be consolidated within the MHPS segment. Excluding the port equipment business results, the operating margin for the Cranes segment would have been approximately 11% in the second quarter of 2012.

Terex Material Handling & Port Solutions: Net sales for the MHPS segment for the second quarter of 2012 were $361.0 million. Net sales are generally on track for port equipment and services, but are somewhat behind expectations in the industrial cranes business. Net sales generated by the segment’s service component was particularly strong in North America.

Income from operations was $11.8 million in the second quarter of 2012. Operating results improved by $8.9 million compared to the first quarter of 2012 primarily due to product mix and reduced spending levels.

Terex Materials Processing: Net sales for the MP segment for the second quarter of 2012 increased $1.6 million, or 0.8%, to $190.3 million versus the second quarter of 2011. Adjusting for the translation effect of foreign currency exchange rates, net sales increased approximately 4% from the comparable prior year period. Continued strength in North America and Australia were the primary sales drivers, partially offset by softening demand in Western European markets, particularly for mobile crushing and screening equipment.

Income from operations in the second quarter of 2012 was $28.6 million, or 15.0% of net sales, compared to income from operations of $21.1 million, or 11.2% of net sales, during the second quarter of 2011. Operating performance improved primarily due to pricing, cost savings and the reimplementation of manufacturing at the Coalville location, allowing the business to release a restructuring reserve of $2.4 million.

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