Terex is a "T-Rex" when it comes to making a variety of cranes, aerial platforms, and construction and materials processing equipment. Its construction business makes compaction equipment, such as compact track loaders and excavators, as well as off-highway trucks and road building products. Another arm makes aerial lifts, from articulating to telescopic booms, used in industrial and construction overhead jobs. Terex products are sold in more than 100 countries around the globe to the construction, forestry, and recycling, shipping, and utility industries, under brands Terex, Genie, and Powerscreen. In North America it sells and rents equipment via its own distribution chain.
Terex sells its machinery products through around 15 owned and leased facilities spanning the states of Indiana, Iowa, Michigan, Minnesota, Mississippi, Ohio, Oklahoma, South Carolina, South Dakota, and Washington. Internationally it owns and leases almost 50 facilities in Brazil, Europe, India, Northern Island, Scotland, South Africa, the UK, and the Asia/Pacific.
Terex makes and sells its construction and materials processing equipment across five operating segments. Its Cranes segment is its most lucrative (31% of total sales), while Aerial Work Platforms generates about 27% of total revenue. Construction earns 23%, and Materials Processing brings in 10%. Finally, the company's newest segment, Material Handling & Port Solutions (MHPS), accounts for the remaining total sales. MHPS makes industrial cranes and industrial crane components under the Demag and Gottwald brand names.
The company's fiscal 2011 was a transitional year as it made investments and improvements to support the recovery of its business since a difficult earnings year in 2008. From 2010 to 2011 Terex's revenue exploded, increasing 47% from $4.4 billion to $6.5 billion. About 10% of this additional revenue was the result of its significant mid-2011 acquisition of Demag Cranes, a leading European industrial crane maker. Solid growth in North America and opportunities in emerging markets offset weakness Terex experienced in parts of Europe.
Each of Terex's segments also experienced increases in revenue due largely to recoveries made in the construction sector and increased efficiencies it implemented to its new operating structure. However, its profits nosedived by almost 88%, plummeting from $359 million in 2010 to $45 million in 2011. This decline was mainly due to higher transactional foreign currency expenses as well as an increase in its cost of sales.
Terex's growth plan involves targeting developing markets with a slew of specialty machinery and industrial equipment using acquisitions and joint ventures. In 2012 it established a joint venture in Russia, partnering with Russian Machines, a seller of road construction machinery operating in 14 regions throughout the country. Terex also has a 65% stake in Jinan, China-based boom crawler-maker Shandong Topower Heavy Machinery. Other forays into China include launching the Terex Port Equipment facility in Xiamen and the Aerial Work Platforms (Genie brand) factory in Changzhou.
In 2011 the company acquired shares in Germany-based Demag Cranes, giving it a majority 82% stake in the industrial crane manufacturer. Demag Cranes, with a portfolio of industrial cranes, hoists, and port technology, now operates within MHPS, Terex's newest business segment. The noteworthy purchase included about 20 Demag subsidiaries working throughout Europe and the Middle East.
As part of a long-term effort to reposition its business into a more diverse maker of machinery, Terex in 2010 divested its powertrain pumps business and gears business. Additionally, Terex offloaded its lackluster heavy construction equipment business (Terex Atlas), and it sold its mining unit to Bucyrus International and used a portion of the $1.5 billion in cash and stock from Bucyrus to retire some of its debt. – less