Terex Cranes is bullish with strong results

For the full year 2018, Terex reported net sales of $5.1 billion, an increase of 18% over the $4.4 billion achieved for 2017. Meanwhile Terex has also announced it plans to to sell its Demag Mobile Cranes business to the Japanese firm 7102 Tadano. In addition, Terex Cranes will exit the mobile crane product lines manufactured at its Oklahoma City facility.

The Demag Mobile Cranes business sale is subject to government regulatory approvals and is expected to close in mid-2019. However, Terex says that it will continue to manufacture and support several specialised crane products including Terex rough terrain cranes for the global market in Crespellano, Italy, Terex tower cranes in Fontanafredda, Italy, and Terex pick and carry cranes in Brisbane, Australia. Terex will continue to manufacture Terex Utilities products at its Watertown, South Dakota facilities and the Oklahoma City facility will continue to be a major Terex manufacturing centre, focusing on telehandlers, aerial re-manufacturing, and various products for Materials Processing. Both Terex Utilities and the Oklahoma facility will become part of the Terex AWP business segment.

“Overall, our global team executed well in the fourth quarter, completing a strong year for Terex,” remarked John L Garrison, Terex chairman and CEO.  “We will continue to support all of our customers, including those affected by the changes in our Cranes segment, as we execute our strategy to be a high performing, customer-focused company.”   

Sales for the Terex Cranes segment grew 12% compared to 2017 to $365 million. For the full year, the Cranes segment achieved net sales of $1.3 billion, growing 10% versus last year.  The business made improvements in materials management and operational performance, resulting in a return to profitability in Q4.  

Steve Filipov, president of Terex Cranes commented, “In Q4 the Cranes segment succeeded in overcoming the material supply challenges that impacted our performance earlier in 2018.  The sale of the Demag Mobile Cranes business to Tadano. is based on strong industrial logic.

Terex Corporation is selling its Demag Mobile Cranes business to Tadano for $215 million.  The Demag Mobile Cranes business manufactures and sells all terrain cranes and large crawler cranes. Included in the transaction are the manufacturing facilities in Zweibrucken, Germany and sales and service locations.  

Commenting on the rationale of the deal, Koichi Tadano, Tadano president and CEO said: “This is a strategic acquisition that offers Tadano considerable scope for growth. The addition of the well-respected Demag brand of all terrain cranes and large crawler cranes range extends our product lines and options for customers. The addition of the Demag branded mobile crane product lines will enhance our global position in this segment. We believe that the Zweibrucken facilities and its global team members, as well as the current distribution partners, are valuable to the future success of the business.”