Newly upgraded Genie GTH-5519 compact telehandler

Terex Corp plans some production increases in its aerial work platform and crane segments, the Westport-based company says in its report for the third quarter ended 30 September.

Aerial work platforms worth USD533.3 million represented 29% of total Terex sales, with the segment showing signs of a positive near-term market demand, according to Ronald M DeFeo, chairman and chief executive officer.

Replacement demand in the North American rental channels was a principal driver. The segment's offerings include Genie-brand boom lifts, scissor lifts, vertical mast lifts and telehandlers in addition to aerial work platforms.

"For the big North American rental companies, late third quarter or fourth quarter is when negotiations generally happen for the following year," says Phillip C Widman, senior vice president and chief financial officer. "In 2011, large recurring fleet orders were received in quarter three. In 2012, these similar fleet orders did not start being received until the fourth quarter of 2012. If we backed out the timing impact of these orders, backlog is essentially flat year over year, and the seasonal trend between Q2 and Q3 of 2011 and Q2 and Q3 of 2012 was consistent. Overall, we remain confident in our outlook for this business."

Terex plans a 3.4% increase in its pricing for aerial work platforms. "Our competition has actually announced 5% to 8%," DeFeo reports.

North American business represented 69% of the segment's sales. The large accounts with national footprints represented about one-third.

"We've seen a shift from the second quarter," says Tim Ford, segment president. "The number of independents has substantially increased. . . . We knew that the first half would be strong national accounts, second half would be stronger independent and that's exactly the way the year is playing out."

Companywide, Terex reports profit from continuing operations of USD89.3 million on sales of USD1.81 billion for the third quarter ended 30 September versus profit of USD28.3 million on sales of USD1.82 billion for the comparable year-earlier period. In the recent quarter, North America represented 35% of the diversified sales base, western Europe 27%, Asia 18%, Latin America 7% and the balance of the world 13%.

"We continue to grow in North America, and our EU sales actually grew 6% year-to-date, excluding the positive effect of the Demag Cranes AG acquisition," DeFeo says.