Although overall sales for Terex were up 38 percent in the third quarter of this year compared to the same period last year, Terex chairman and chief executive Ronald DeFeo said steel cost increases negatively affected the company’s operating results by $31 million in the third quarter. Two Terex groups recently announced they are raising prices as a result of higher steel costs. Terex Aerial Work Platforms announced its intention to increase prices 6 percent for all products in its portfolio shipped on or after Jan. 1. Bob Wilkerson, Terex executive vice president and president of the aerial work platforms group, said the industry as a whole is dealing with margin pressure as a result of sharp increases in steel prices, and he expects the company’s relative pricing position to remain about the same. The aerial work platform group has honored pricing agreements with it customers for 2004 – prices that were negotiated in the fall of 2003, he added. Terex Cranes increased prices 4 percent to 6 percent – depending on make and model – across all product lines worldwide Nov. 1. Steve Filipov, president of Terex Cranes, said the move was necessary to offset pressure from vendor pricing on items such as steel and tires. The group also added a surcharge for certain components such as unusual counterweights, for which it says its vendors have increased prices 50 percent or more.
Two Terex groups raise prices in response to steel costs
Nov 15, 2004