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SEC Filings, Earing Reports, Press Releases
Terex Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: April 30, 2010 12:16PM
Terex Corp. (TEX) filed Quarterly Report for the period ended 2010-03-31.
Highlight of Business Operations:
While we believe end-markets will not provide much overall sales volume benefit in 2010, current trends have increased our confidence in a more robust 2011 operating environment. We remain positive about the long-term outlook of our business and we are focused on achieving positive earnings per share performance exiting 2010. As we look to the full 2010 year, our expectation is that net sales will be less than $5 billion and losses will be approximately $1 per share, excluding the impact of restructuring and unusual items. What we hear and see in our marketplace is encouraging for the future. We expect 2011 through 2013 to be strong growth years for our industry and, in particular, our products.
Net sales for the three months ended March 31, 2010 decreased $29.9 million when compared to the same period in 2009. Excluding approximately $52 million from the favorable impact of foreign currency exchange rate changes and net sales of approximately $78 million from the Port Equipment business, net sales decreased approximately 17%. Each of the Company s segments, with the exception of MP experienced slightly lower net sales compared to the first quarter of 2009 due to continued economic uncertainty that has caused customers to remain cautious in their capital equipment spending.
Gross profit for the three months ended March 31, 2010 increased $31.4 million when compared to the same period in 2009. Improved utilization in our factories affected gross profit favorably by approximately $19 million. Lower restructuring charges and capacity variances improved gross profit by approximately $13 million. Additionally, lower inventory charges improved gross profit by approximately $8 million. Lower net sales, combined with other operational influences such as product mix and pricing, negatively affected gross profit by approximately $13 million.
Net sales for the AWP segment for the three months ended March 31, 2010 decreased $10.6 million when compared to the same period in 2009. Lower net sales volume of approximately $18 million, primarily in the North American and European markets, drove the net sales decrease. Rental customers in the North American and European markets continued to age and reduce their aerial fleets, deferring the purchase of new products. Developing market demand for large booms, light towers and telehandlers has continued to steadily improve, as markets such as Brazil are building equipment fleets to support strong infrastructure growth under way. We also experienced a slight increase in utility product net sales. The decrease in net sales was partially offset by the favorable translation effect of foreign currency exchange rate changes of approximately $10 million.