Terex to Exit Excavator Business?

Staff | September 28, 2010

"We've never really demonstrated an ability to be meaningfully profitable and successful in this [construction equipment] business," Ron DeFeo, chairman and CEO of Terex, admitted to a J.P. Morgan investor conference on Sept. 16. "This segment of our business reached nearly $2 billion [in revenue] in 2007 and 2008 and only produced a modest operating profit."

With the goal of becoming "the most profitable construction equipment manufacturer in the world," DeFeo pledges to analyze Terex construction machines by product type and pick some to sell by "early in 2010."

The painful comparison is with the Terex aerial-work-platform, crane, materials-processing, and mining product segments, which DeFeo says generate revenue similar to that of construction equipment but at much better profit margins.

More of DeFeo's comments, and some likely sale and buyer prospects can be found at https://www.constructionequipment.com/blog/1200000720/post/200049020.htm.