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

By Zacks Investment Research,

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In the third quarter of 2014, Terex Corporation's adjusted earnings per share (EPS) declined 19% year over year to $0.59. Terex will continue to benefit from its restructuring programs, debt reduction and share repurchases. However, Terex lowered its adjusted EPS guidance to the range of $2.35-$2.50 for 2014 and reiterated net sales range of $7.3 $7.5 billion. The prospects of decline in AWP operating profits, coupled with weakness in the crane segment and weakening backlog creates significant uncertainty regarding 2015 earnings. Moreover, adverse currency fluctuations, commodity price volatility and competition remain headwinds in the near term. Considering the positive and negative factors, we are upgrading our recommendation from underperform to neutral with a target price of $29.


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 32% of total 3Q14 revenue) This segment designs, manufactures, and markets aerial work platform equipment, telehandlers, power equipment, construction trailers and utility equipment.

Materials Handling & Port Solutions (MHPS) (25%): 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 (23%): 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 Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: EPS , TEX , AWP

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