), a global equipment manufacturer, has embarked on a
restructuring plan, according to Bloomberg. The company is
planning to either close or sell several of its businesses which
will result in job cuts.
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The company is expected to eliminate 386 workers as part of the
restructuring of its German compact construction operations,
which will cost it $11.7 million. It will also cut about 26 jobs
in the material-handling and ports segments.
Terex Corporation, which is among the top players in the
machinery construction and mining industry along with
Astec Ind Inc
H&E Equipment Services Inc
Caterpillar Inc Del
), will close the units which were generating poor returns. The
1.8% reduction of staff will improve the company's operating
results in 2013.
Terex also intends to restructure its material handling and port
solutions segment. The move entails closing of a production site
in Spain, which has some under-performing cranes and port
Terex 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. It also
offers a complete line of financial products and services to
assist in the acquisition of equipment through Terex Financial
The company has restructured its business portfolio, transforming
from a mining and construction equipment company to a more
diverse manufacturer of capital goods machinery with strong
market positions in specialty areas.
Terex aims at improving margins and earnings and generating cash
flow to help reduce its debt level. Its Aerial Work Platforms
segment continues to benefit from North American rental channel
demand. Crane segment's performance is expected to remain strong
in North America and in certain developing market regions in
Terex Corporation currently retains a short-term Zacks Rank #3