Terex Corporation (TEX) is witnessing declining unit volumes across the board since the second half of 2008, due primarily to deterioration of the North American and European economies. The company expects 2009 net sales to decline by approximately 50% compared to 2008 due to weak global end-markets and constrained credit availability worldwide.
Despite its efforts to offset lower volumes by cutting costs and managing inventories, the company has posted losses in the last three quarters. With no substantial recovery expected in any of the company’s end-markets in the near-term, we believe it is impossible for the company to post profits in the next couple of quarters.
We are downgrading the rating on the stock from Neutral to Underperform.Zacks Investment Research
