Terex AWP sales fall 45% and makes more job cuts

Terex AWP sales, including Genie Industries, fell by 45% in the final quarter of 2008 with Europe the worst performer, down 60% compared to the same quarter in 2007.

The company is expecting a 35-45% fall in sales for 2009 for the aerial work platform division and announced further cost cutting measures, with an additional 7% reduction of the division's workforce at the start of February. Terex AWP had already lost around 34% of its staff since June 2008.

Terex's aerial platform manufacturing facilities are operating on shortened working-weeks and with temporary shutdowns, which will continue "as necessary", said the company's financial statement for the final quarter. The division made an operating loss of US$6.8 million during the quarter.

Ron DeFeo, Terex chairman and chief executive officer, said; "This past year has been like no other - the first half of the year exhibited robust growth and expansion, while the second half of the year was severely impacted by the global credit crisis and economic deterioration, which drove significant declines in customer demand in our businesses."

Mr. DeFeo said it was difficult to predict levels of demand for 2009 given current market conditions; "However, we are planning for continued softness in demand. We are experiencing increasing levels of cancellations in our backlog for crane and mining products, as well as delays in acceptance of deliveries, as our customers in these areas are not immune to the effects of the global economic downturn.

"Based on what we know today, we expect our net sales for 2009 to decline by 30% to 35% from 2008... we will continue to take aggressive actions to reduce operating costs and improve our cash flow."

For the full year 2008, Terex reported net profits of $71.9 million compared to $613.9 million in 2007.