Terex Corp. (TEX), the maker of cranes, trucks and lifts, plunged the most in two years after reducing its 2013 earnings forecast on a “softer” market for its equipment used at construction sites and ports.
Terex fell 14 percent to $27.30 at 9:40 a.m. in New York. The shares earlier dropped 16 percent, the most intraday since May 6, 2010.
Full-year earnings excluding some items will be $1.90 and $2.10 a share, down from previous guidance of $2.40 to $2.70, the Westport, Connecticut-based company said today in a statement. Terex also said second-quarter earnings will be 50 cents to 60 cents a share. The average of 18 analysts’ estimates surveyed by Bloomberg was for second-quarter earnings of 82 cents a share, and profit of $2.55 for the full year.
Positive replacement demand for aerial work platform products and “solid performance” for materials processing won’t offset softer demand for construction and material handling and port solutions, Terex Chairman and Chief Executive Officer Ron DeFeo said in the statement.
“The level of sales growth has softened overall for Terex when compared with the increases we originally anticipated for 2013,” DeFeo said. “Fundamentally, North America continues to improve, but now at a slower pace, while Europe remains challenging overall, and the markets in the rest of the world are mixed.”
To contact the reporter on this story: Shruti Date Singh in Chicago at email@example.com
To contact the editor responsible for this story: Simon Casey at firstname.lastname@example.org