Terex has announced net income for the third quarter of 2008 of $93.8 million, at $0.96 per share, compared to net income of $151.5 million, or $1.45 per share, for the third quarter of 2007, a decrease in earnings per share of 33.8 percent.
These results include a $10.1 million after-tax, or $0.10 per share, charge related to a crane repair program, and charges associated with reductions in headcount of $2.2 million after-tax, or $0.02 per share. All per share amounts are on a fully diluted basis.
Third quarter net sales of 2008 grew 14.5 percent, to $2,514.6 million, versus the comparable period in 2007. The increase in net sales versus the prior year period was favorably impacted by acquisitions and by the translation effect of foreign currency exchange rate changes. Excluding these effects, net sales increased 6 percent in the third quarter of 2008 versus the prior year period, driven mainly by strong performance in the Cranes and Materials Processing & Mining (MPM) segments.
In the third quarter, Terex AWP reduced its global workforce by 6 percent compared to June 2008. This does not include the elimination of the AWP temporary agency workers in July 2008. In the fourth quarter, Terex AWP expect a further 18 percent workforce reduction, to better align cost structure with expected customer demand.
Terex Construction in the third quarter adjusted production lines to short-time work weeks and reducing 141 team members to match current market demand. Further reductions are expected to occur over the next three to six months, a 17 percent workforce reduction is expected for Terex Construction worldwide operations.
Terex Materials Processing cut production levels by 25 percent of the first half of 2008, as a result, independent contract manufacturing staffing levels were cut. During the fourth quarter of 2008, production levels are projected to be reduced to roughly 50 percent of the first half 2008 levels, through the use of an extended winter shutdown, a shortened work week and further independent contractor reductions and an expected reduction of 160 team members.
Terex Roadbuilding in the third quarter reduced the workforce by 98 team members to adjust production levels and resources to meet expected demand.
In addition to the mentioned actions, facility plans are being reviewed to improve the use of facilities through consolidation, transfer or sale. Terex expects that these changes will take place in 2009.
