Terex Corp affected by pricing pressure in the marketplace. PHOTO: DREAMSTIME.COM

Materials handling giant Terex Corporation, currently in the throes of a merger with Konecranes, is feeling the impact of some tough markets, reporting slower performance in the last quarter.

Income from continuing operations for Q3 was USD44.8 million - down from USD58.7 million for the third quarter of 2014.

Net sales slipped 9.3% to USD1,641.3 million in the third quarter, falling from USD1,809.8 million in the same quarter of 2014. Excluding the impact of currency exchange rates, net sales decreased USD17.4 million or 1.0%. Income from operations was USD111.9 million (USD116.8 million in 2014) in the third quarter of 2015 and excluding certain items, income from operations as adjusted was USD126.8 million (USD$127.5 million last year).

"Our marketplace remains challenging," says Ron DeFeo, outgoing Terex chairman and chief executive officer. "We had another good performance in our aerial work platforms (AWP) business which delivered year over year improvement in profitability in the third quarter as increased productivity and lower material cost more than offset lower sales, mainly in the North American telehandler product category.

"The materials processing business also had a solid quarter, expanding operating margins on relatively flat sales.

"The cranes and construction businesses continue to experience relatively soft market conditions overall, with customers remaining cautious with their equipment purchasing patterns," he says, also noting declines in the materials handling and port solutions business "driven by a decrease in port automation sales".

DeFeo points to pricing pressure in the marketplace, which has mostly been offset by reductions in material input costs.

"We continue to execute very well against the cost saving initiatives that we have previously communicated. We also continue to make progress towards the completion of the merger with Konecranes Plc, which, when combined with the improvements already under way, creates a compelling financial improvement story in an otherwise flat market."

Looking ahead, DeFeo believes Terex will be "at or near the low end of (its) previously announced earnings guidance" for the full year.