Construction and mining equipment manufacturer Terex Corp. (TEX) announced a net loss of $1.06 per share for the fourth quarter of 2009 as profits in the Cranes segment were more than offset by losses in the other three segments.
 
Net sales during the quarter declined 36.1% to $1,058 million from $1,656.1 million in the fourth quarter of 2008 due to weak sales at all of the company’s businesses, partially offset by favorable currency translation impact. Sales declined in double digits in all the four segments due to the impact of the global economic slowdown on target markets.
 
The Aerial Work Platforms division posted a 48.1% decline in sales on a year over year basis. Sales decline was due to lower volumes in North America and Europe, as customers continued to defer the purchase of new products.
 
The Construction segment reported a 41% decline in sales compared to the corresponding period of 2008 due to weak demand for both compact and heavy construction equipment as well as lack of financing availability for projects and capital equipment. Residential and commercial construction activity continued to remain low across the markets.
 
In the Cranes business, revenue declined 25.2% due to lower sales of rough terrain cranes, tower cranes and lower capacity all-terrain cranes as a result of delay/cancellation of commercial construction projects. The Materials Processing & Mining segment reported a revenue decline of 39.1% compared to the fourth quarter of 2008, due to lower sales materials processing equipment.
 
Terex expects the challenging market conditions to continue in 2010. However, the company sees some stability in its end markets and is focusing on increasing its market share. Based on the current market conditions, Terex expects revenue to grow by approximately 24% year over year to $5.0 billion in 2010. The revenue growth is expected to be primarily driven by favorable currency translation impact and the inclusion of the Port Equipment business for the full fiscal year. The company sees continued operating losses for the first half of 2010 and anticipates returning to profitability in the second half of the year.
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