Cargotec has reported falling sales in its latest financial statements for 2008, with both demand and sales dropping in the second half because of the global financial crisis.
The Kalmar and MacGregor divisions both grew throughout 2008; but poor sales for Hiab in the second half held back the group's growth.
However, group sales grew 13% over the full year and continued to rise in the last quarter to EUR924 million (USD1.1 billion) from EUR868 million (USD1.1 billion).
The company says its financial results reflect a year of two distinct halves: "The first half was characterised by soaring demand, which then plummeted due to the global financial crisis and slowing markets, especially in Hiab."
Meanwhile, in the United States, Terex has revised its earnings guidance because it expects earnings to fall around 5% due to the economic decline in the final quarter of 2008.
 Ron DeFeo, CEO of Terex |
Ron DeFeo, CEO and chairman of Terex, says smaller cranes and tower cranes were among the products hit by the downturn.
The company had predicted earnings per fully diluted share of between USD5.69 and USD5.79; but is now flagging USD5.40 per share.
DeFeo says the fourth quarter 2008 results were affected by the rapid change in global economic conditions as well as continued input cost pressure.
"We continue to feel the negative effect that credit availability has on customer sentiment and demand for our products, particularly in our construction, materials processing and aerial work platforms businesses, as well as our smaller crane and tower crane product lines," he says.
Terex is taking aggressive actions to reduce costs and inventories in all of its businesses.
In similar vein, Manitowoc Cranes will lay off around one in five of its workforce – up to 22% - because of a drop in demand.
Eric Etchart, president of Manitowoc Cranes, told analysts that 2008 was the company’s "best year ever" in the crane segment, with very strong demand in the first half of the year. However, this was followed by an accelerated decline in demand during the second half.
He says the worst markets are in western and southern Europe where cancellations have directly affected Manitowoc’s lines of self-erecting, top slewing tower cranes and mobile hydraulic product line. "Our total crane backlog in Europe has declined by almost 80% compared to the same period last year. This reduction in backlog has left us with the need to ‘right-size’ our employment levels."
Layoffs will occur in France, Portugal, China, India and Manitowoc’s Shady Grove facility in Pennsylvania.
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