Terex Material Handling & Port Solutions: Net sales for the MHPS segment for the third quarter of 2012 increased $85.6 million, or 22.2%, to $470.8 million versus the third quarter of 2011. Net sales increased from the third quarter of 2011 due to the inclusion of Demag Cranes results for a full quarter in the current period and only half a quarter in the prior year period, as well as increased deliveries of standard and process cranes to customers in Western Europe, South Africa and the Middle East. Net sales generated by higher service activity also contributed to this increase.
Income from operations was $19.9 million, or 4.2% of net sales, as compared with a loss from operations of $1.8 million, or 0.5% of net sales, during the third quarter of 2011. Operating performance improved as the prior year period included approximately $19 million in charges related to the fair value adjustment of inventory. This was partially offset by a $6.9 million charge in the current period as the Material Handling business made changes to better align production with market demand. In addition, a management allocation in the current period was not present in the prior year period.
Terex Materials Processing: Net sales for the MP segment for the third quarter of 2012 decreased $21.2 million, or 12.4%, to $149.9 million versus the third quarter of 2011. Continued softness in Western Europe and India for mobile screening products was the main driver of weakness, offset partially by strength in North America and Australia. Latin America continued to be a positive sales contributor driven by demand for mobile equipment from small mines and quarry activity.
Income from operations in the third quarter of 2012 was $15.2 million, or 10.1% of net sales, compared to income from operations of $12.4 million, or 7.2% of net sales, during the third quarter of 2011. Operating performance improved primarily due to price realization and a favorable mix of products and geographies, as well as adjustments made in production and related production costs to mirror the softer demand environment.
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