“We are at an inflection point in this business cycle and I believe it is now time to focus on growth while continuing to hold the line on costs,” said Ron DeFeo in a conference call this morning, commenting on the company’s 3rd quarter results, released yesterday.
While net sales for the quarter were down more than 51 percent from the third quarter of 2008, DeFeo says the company should be making money in some segments — particularly mining and material processing — by the second quarter of 2010. Still under question are portions of the company’s construction business, which Terex has indicated it will make keep/sell decisions on by next spring.
The company is still making product introductions in construction, including a new articulated truck that debuts this month and a skid steer by late 2010. “Compact equipment has been particularly challenged, but we think we have a strong lineup in that category,” said DeFeo.
Terex is says it has seen an increase in inquiries from rental companies in the past 60 days. “I think the shock has worn off and everyone is looking at getting back into the market,” said DeFeo. Rental fleets next year will focus any capital expenditures on replacement fleet, and keeping fleet age flat.
To view the 3rd quarter release, click here.