Terex net Q2 sales dropped to $690.5 million, compared to $1.3 billion for the same quarter in 2019—a decrease of 47 percent.
“While the COVID-19 pandemic continues, global economic activity has gradually recovered but remains below pre-COVID-19 levels,” says John L. Garrison, Jr., Terex chairman and CEO. “In response to lower customer demand, we are closely aligning our production plans.”
Terex says its Aerial Work Platforms segment rapidly reduced production in response to lower customer bookings in North America and Europe, but saw commercial demand return in China.
“In addition, the utilities team has moved into its new, state-of-the-art facility, which will improve production efficiency and enable future growth,” Garrison says.
Terex’s Materials Processing segment delivered “high single digit operating margin despite significantly lower demand in commercial end markets,” Garrison says and adds the division is positioning for future growth by expanding into new geographies and new products.
Terex says based on its current expectations for the remainder of 2020, it anticipates sales in the second half of 2020 to be similar to the first half of the year, which saw net sales of $1.5 billion, compared with 2019 first-half sales of $2.4 billion.
“While the economic outlook remains uncertain,” says Garrison, “by producing in-line with customer demand and aggressively managing costs, Terex is confident it will successfully navigate these challenging times.”