DOW JONES NEWSWIRES
Terex Corp. (TEX) swung to a second-quarter loss on slumping
sales as the construction-machinery maker's results were short of
analysts' expectations.
The company also cut its 2009 revenue forecast again; it now
anticipates a 50% drop, not the 40% to 45% reduction seen in
April.
Shares fell 7.7% after-hours to $12.53. Through Wednesday's
close, the stock was down 73% from a year earlier.
"The turmoil from the ongoing recession continues to deeply
impact sales for our industry," said Chairman and Chief Executive
Ron DeFeo. "Certain markets have stabilized, but at low levels,"
while some, such as mining, "have begun to weaken, but at less
dramatic rates. We are responding by aggressively reducing
costs."
President Tom Riordan said more cuts will be needed to eliminate
Terex's operating losses by 2010 in its most-suffering operations.
That includes the so-called aerial works platform business, where
Riordan said profitability may be a year off yet. That business is
separate from Terex's crane operations.
Efforts so far have cut expenses at a $246 million quarterly-run
rate and the company is still targeting $300 million by year's
end.
Terex reported a loss of $77.6 million, or 78 cents a share,
compared with year-earlier earnings of $236.2 million, or $2.32 a
share. The latest results included 40 cents in restructuring and
other charges.
Revenue crumbled 55% to $1.32 billion.
The mean estimates of analysts surveyed by Thomson Reuters was a
28-cent loss on revenue of $1.5 billion.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com