Terex Corp. announced it is lowering its full-year 2013 guidance and from the previous expectation of earnings between $2.40 and $2.70 per share to earnings per share in the range of $1.90 to $2.10 because of softness in its Construction, Material Handling and Port Solutions and Cranes businesses. Terex is also providing second quarter earnings-per-share guidance of $0.50 to $0.60 per share.
“The level of sales growth has softened overall for Terex when compared with the increases we originally anticipated for 2013,” said Ron DeFeo, Terex chairman and CEO. “More specifically, we are experiencing a softer marketplace for our Construction, Material Handling & Port Solutions, and, to a lesser degree, our Cranes operations. We do continue to experience positive replacement demand for Aerial Work Platform products and solid performance for Materials Processing. However, strength from these businesses will not offset the revenue variances of the balance of our business.
“Fundamentally, North America continues to improve, but now at a slower pace, while Europe remains challenging overall, and the markets in the rest of the world are mixed. We remain generally on track with the operating changes underway, including the cost reduction initiatives in our MHPS and Cranes businesses, as well as the divestiture of underperforming businesses in our Construction segment. We continue to expect that the second half of 2013 will show improved results when compared with 2012.”
DeFeo said Terex will provide a segment-specific outlook for the remainder of 2013 when the company reports second quarter results in late July. “We do not view this near term softening as evidence of a protracted slowdown,” DeFeo added.
Terex is based in Westport, Conn.