Ronald M DeFeo

First quarter sales in the Terex Corp aerial work platform (AWP) segment decreased 65.6% to USD228.5 million from USD664.7 million. The decrease for the period ended 31 March was about 64%, excluding the impact of changes in foreign currency exchange rates.

AWP backlog dropped 81.3% to USD148.9 million from USD794.5 million, and the business segment reported an operating loss of USD41.0 million versus a profit of USD108.7 million last year.

In a conference call with security analysts, Terex acknowledged that the AWP segment was "hit first and the hardest" among the Terex businesses.

Terex said AWP has taken "aggressive global headcount reductions of more than 40% since June 2008" and projects completion of further "headcount alignment" by June 30.

Terex says it is "not seeing price deterioration" in the AWP market and that AWP business managers have "done a nice job of being disciplined with the customer base".

The company says the AWP segment was slowing its "China expansion to preserve cash" and continuing use of temporary plant shutdowns and short weeks.

Companywide, "the downturn in order activity has been severe though parts of our business continue to perform adequately," says Ronald M DeFeo, Terex chairman and chief executive officer. The adequacy reference was to the Terex segments for cranes and material handling and mining.

For the quarter, Westport-based Terex lost USD74.9 million on sales of USD1.30 billion, down 44.9% from USD2.36 billion in the comparable 2008 period.