Terex to Cut Almost 400 Jobs in Germany as Part of RestructuringShruti Date Singh
Terex Corp., the maker of cranes and lifts, expects to cut about 1.8 percent of its workers this year as it restructures construction and port-equipment units.
The company is restructuring its compact construction operations in Germany and expects to sell or close several businesses, which will cost $11.7 million and result in the reduction of 368 workers in 2013, Terex said in a filing today. The Westport, Connecticut-based company is also cutting about 26 jobs in its material-handling and ports segment.
“We plan to exit a number of compact construction component manufacturing businesses in Germany,” Ron DeFeo, Terex’s chairman and chief executive officer, said in the company’s earnings statement on Feb. 19. “Many of these businesses were generating poor returns and we expect these actions to improve operating results as the year progresses.”
Terex’s lastest steps follow its 2011 restructuring of manufacturing operations in North America and Britain and are part of an effort to focus its businesses and nearly double earnings to $5 a share on sales of $10 billion by 2015. The company on Feb. 19 forecast earnings of $2.40 to $2.70 a share on revenue of $7.9 billion to $8.3 billion this year.
Terex is also restructuring its material handling and port solutions segment, closing a production site in Spain. The unit, which includes some cranes and port equipment, had been “under-performing,” Tom Gelston, a spokesman, said in an interview today.
The manufacturer employed about 21,300 people worldwide on Dec. 31.