Terex Corporation (TEX): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
Terex Corporation reported second-quarter 2014 adjusted earnings of $0.76 per share, which increased 18.8% year over year. However, the company lowered its 2014 earnings guidance to a range of $2.35-$2.50 per share on weaker-than-expected Crane demand. Terex's estimates have undergone negative revisions following the guidance cut. At the end of the quarter, Terex's Book-to-bill was 0.92, while its backlog declined 7% sequentially to $2.2 billion, mainly dragged down by the AWP segment. Moreover, Terex's revenues in developing markets and Australia continue to remain relatively weak. Hence, we are downgrading our recommendation from neutral to underperform with a target price of $27.

Overview:

Terex Corporation (TEX) is a global equipment manufacturer catering to the construction, infrastructure, and surface mining industries. The company's manufacturing facilities are located in the U.S., Canada, Europe, Australia, Asia and South America. Terex sells its products through a worldwide distribution network. The company has five reporting segments.

Aerial Work Platforms (AWP) (Approximately 35% of total 2Q14 revenue) This segment designs, manufactures, and markets aerial work platform equipment, telehandlers, power equipment, construction trailers and utility equipment.

Materials Handling & Port Solutions (MHPS) (21%): This segment is involved in the design, manufacturing and marketing of industrial cranes, including standard cranes, process cranes, rope and chain hoists, electric motors, light crane systems and crane components and port equipment.


Cranes (24%): This segment designs, manufactures and markets mobile telescopic cranes, tower cranes, lattice boom crawler cranes, truck-mounted cranes and telegraphic container stackers, as well as related components and replacement parts.

Construction (11%): This segment designs and builds heavy and compact construction equipment, Road building equipment including asphalt and concrete equipment, landfill compactors and bridge inspection equipment.

Material Processing (MP) (9%): This segment designs and manufactures materials processing equipment, including crushers, washing systems, screens, apron feeders, chippers and related components and replacement parts.

Terex also offers a complete line of financial products and services to assist in the acquisition of equipment through Terex Financial Services.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: AWP , TEX

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As of 12/29/2014, 09:30 AM


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