Terex Corp. announced that it is lowering its full year 2014 guidance, as well as providing quarterly guidance for the third quarter.
The primary driver of the guidance change is weakness in the Cranes segment. Despite a positive trend in book-to-bill ratios over the first half of 2014, the Cranes order rate has dropped significantly in July and August. Additionally, Cranes customers in developing markets are struggling to secure financing for orders scheduled for delivery in the second half of 2014.
Full year 2014 earnings per share is now expected to be between $2.35 and $2.50, as adjusted for certain non-recurring items. Previous full year 2014 guidance was an earnings per share of between $2.50 and $2.80. Due to the timing of this announcement, the company is also providing third quarter 2014 earnings per share guidance of $0.55 - $0.65 per share, excluding certain non-recurring items.