raised its first-quarter and full-year profit estimates, saying recent results have been encouraging from most of its businesses, notably its aerial-work platforms group.
The company, a maker of construction and mining equipment, now expects to report first-quarter earnings, excluding items, of $1.55 to $1.60 a share, assuming a tax rate of 35%. Terex said its sales would be about $1.75 billion.
For the full year, Terex is now projecting earnings of $6.40 to $6.80 a share, before items, up from its earlier guidance of $5.85 to $6.35. About 52% of its earnings will be collected in the first half of the year, the Westport, Conn., company said Friday.
On average, analysts are calling for a profit of $1.19 a share in the first quarter and $6.16 a share for this year, according to Thomson Financial.
Additionally, Terex said it received a waiver from its senior bank lending group that gives the company until May 15 to provide them with its financial information for the year ended Dec. 31. Terex believes it will complete its 2005 audited financial statements and submit last year's quarterly and annual filings to the
Securities and Exchange Commission
Shares of Terex were lately up $3.21, or 3.9%, to $86.66. Earlier in the session, the stock went as high as $88.98.
"Our construction businesses had disappointing results in the quarter, due to reduction in demand for the scrap-handling product, as well as shortfalls in product throughput in certain other businesses," Ronald DeFeo, Terex's chairman and chief executive, said in a statement. "However, while not apparent in this quarter, these businesses are improving, with a strong order book, and an exciting product launch for many next generation pieces of equipment scheduled for the remainder of the year."
DeFeo's statement added that Terex has had a strong start to 2006, and the company thinks that "global economic factors will continue to have a positive effect for the next few years."