) has launched a new division called Terex Port Solutions to be
incorporated within its Terex Material Handling and Port Solutions
segment. Under this new division, Terex will unite its port
solution products with the products of Gottwald Port Technology
which will be marketed as Terex Gottwald.
Based in Dusseldorf, Germany, Gottwald Port Technology is a
subsidiary of Demag Cranes AG. In 2011, Terex acquired
approximately 82% stake in Demag Cranes and formed the Material
Handling and Port Solutions segment.
The product lines of Terex Port Solutions will include Noell,
Fantuzzi, PPM and Reggiane brands, which will be merged with
Gottwald's wide product range. The new division will offer
hip-to-shore and mobile harbor cranes, straddle and sprinter
carriers, automated guided vehicles and stacking cranes, rubber
tired and rail mounted gantry cranes among others.
The synergy benefits Terex in augmenting its portfolio in the
lines of port solutions. In addition, it will enable Terex to offer
innovative product range to meet the growing demand of its
increasing customer base.
During the first-quarter 2012, Material Handling and Port
Solutions Segment delivered revenues of $367.5 million, riding on
strong demand for industrial cranes, primarily process cranes and
handling technology and mobile harbor cranes.
Backlog in the segment was $492 million, a roughly 5% sequential
increase. Demand for mobile harbor cranes soared, driven by strong
port capacity and container traffic.
Recently, Terex successfully manufactured and delivered
indigenous rough terrain cranes in Brazil. The company intends to
expand in the lines of crane product support along with aftermarket
coverage catering to the needs of a wide customer base.
However, Terex was not the only company to introduce rough
terrain cranes in Brazil. One of its competitors,
Manitowoc Company, Inc.
) has also opened a facility in Brazil to supply rough terrain
cranes in Latin America.
Terex also faces tough competition from companies like
Deere & Company
). Therefore, it must make an earnest effort to expand its product
portfolio, serving its customers better to offset the growing
threats from its competitors that can take away its potential
Terex currently retains a short-term Zacks #3 Rank (Hold). We
have a long-term Neutral recommendation on the stock.
CATERPILLAR INC (CAT): Free Stock Analysis
DEERE & CO (DE): Free Stock Analysis Report
MANITOWOC INC (MTW): Free Stock Analysis Report
TEREX CORP (TEX): Free Stock Analysis Report
To read this article on Zacks.com click here.