Terex’ crane business is only worth 80% of what is was in 2007, while it makes 10% profit on its materials handling products.
During the company’s latest investor conference call, Thomas Gelston, VP – Investor Relations told analysts that while Terex’ crane arm is faltering, the aerial work platforms segment is the strongest division for growth in the second half of 2011.
“Material handlers is the best product within the construction equipment segment today in terms of both their trajectory of their sales and their operating profit, which today sits over already 10%,” he revealed. “And then the roadbuilding business, which is about 80% in North America and it’s been as struggling business for some time.
“Brazil would be principally the other 20%. It’s traditionally or historically have been a very good business though government funding of projects took a brief pause this year for various reasons one of which we hear is corruption, but for the most part, we’re getting a sense of that in mostly over and the money is beginning to flow again. So we’re encouraged by that.”
Looking at other emerging markets, he said Terex was benefiting from exposure in the Australian mining market and that its Russian business was coming on “reasonably strong”. The Middle East business is also benefiting from “oil and gas exploration”.
