Terex lowers profit forecast on softening demand
By Murray Pollok17 June 2013
Terex Corp has lowered its profit forecasts for the year following a softening in demand at its Construction, Material Handling & Port Solutions (MHPS) and, to a lesser extent, Cranes divisions.
Earnings per share are now expected to be in the US$1.90 - $2.10 range compared to the previous $2.40 - $2.70 guidance.
Terex said it did not see the softening as evidence of a protracted slowdown, and it reported continued positive replacement demand for Aerial Work Platform products and a solid performance for Materials Processing. The sales at these divisions will not offset the softening at the other businesses.
“The level of sales growth has softened overall for Terex when compared with the increases we originally anticipated for 2013,” said Ron DeFeo, Terex chairman and CEO.
“Fundamentally, North America continues to improve”, continued Mr DeFeo, “but now at a slower pace, while Europe remains challenging overall, and the markets in the rest of the world are mixed.
“We remain generally on track with the operating changes underway, including the cost reduction initiatives in our MHPS and Cranes businesses, as well as the divestiture of underperforming businesses in our Construction segment. We continue to expect that the second half of 2013 will show improved results when compared with 2012.”