) dropped around as much as 16% after the company lowered its
2013 earnings guidance. Terex slashed its full-year earnings
(excluding items) guidance to $1.90 to $2.10 a share from $2.40
to $2.70 as its sales growth has been weaker than anticipated.
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Terex also forecasts second quarter earnings per share in a range
of 50 cents to 60 cents. The company anticipates improved results
in the second half of 2013 based on the slow recovery in the
North American market. The Aerial Work Platform segment continues
to benefit from North American rental channel demand.
Markets for construction, Material Handling & Port Solutions
(MHPS) and cranes are disappointing due to weakness in global
mining and construction. Demand for Terex's other product lines,
which include Aerial Work Platform and Materials Processing, has
held up. It is not however strong enough to offset the weakness
in other business lines.
While the company remains on track with cost reduction measures
in its MHPS and cranes business along with divestiture of the
poorly performing businesses in the construction segment,
softness in the European market remains a concern.
Owing to weaker demand for mining equipment, industry leader
) also plans to lay off about 260 production employees at its
South Milwaukee plant. Caterpillar recorded a 45% slump in first
quarter 2013 earnings. Full-year sales and profit expectation
were also lowered by Caterpillar due to the weakness in mining
Terex, which belongs to construction and machinery industry along
Astec Industries, Inc.
H&E Equipment Services Inc.
), reported tepid first-quarter 2013 results. Adjusted earnings
declined 21% year over year to 23 cents per share. It fell
short of the Zacks Consensus Estimate of 28 cents as well.
Revenues in most of its segments dropped significantly.
Westport, CT-based 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
Terex currently retains a short-term Zacks Rank #3 (Hold).