QUOTE AND NEWS
TheStreet.com  Jul 24  Comment 
NEW YORK (TheStreet) -- Terex was falling -6.6% to $37.80 Thursday after missing analysts' estimates for earnings and revenue in the second quarter. For the second quarter Terex reported earnings of 76 cents a share, missing the Capital IQ...
newratings.com  Jul 23  Comment 
WASHINGTON (dpa-AFX) - Terex Corp. (TEX) reported second-quarter income from continuing operations of $87.8 million, or $0.76 per share, compared to $20.4 million, or $0.17 per share, last year. Excluding the impact of certain items totaling $54.4...
Forbes  Jul 21  Comment 
Shareholders of Terex Corp. (NYSE: TEX) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the January 2016 covered call at the $50 strike and collect the premium based on the $2.70 bid, which annualizes to an...
DailyFinance  Jul 14  Comment 
Terex Corporation (NYSE:TEX) will release its second quarter 2014 financial results on Wednesday, July 23, 2014 after market close. The Company will host a one-hour conference call to review the financial results on Thursday,...
Cranes Today  Jul 14  Comment 
The company has ordered five 40t Terex T 340-1 cranes from Terex distributor Scott-Macon Equipment to help it access confined job sites in northern Texas while achieving high lift capacities. The order represents an upgrade of Davis Crane's fleet...
Forbes  Jul 11  Comment 
In trading on Friday, shares of Terex Corp. (NYSE: TEX) crossed below their 200 day moving average of $39.52, changing hands as low as $39.40 per share. Terex Corp. shares are currently trading down about 0.6% on the day. The chart below shows the...
Cranes Today  Jul 8  Comment 
The company said the booster kit was ideal for heavy lifting applications with long-boom configurations, such as wind turbine erection and power plant installation, as well as on petrochemical projects. Terex said the Boom Booster, available with...
Benzinga  Jun 19  Comment 
Analysts at BTIG Research initiated coverage on shares of Dr Pepper Snapple Group (NYSE: DPS) with a “sell” rating. The target price for Dr Pepper Snapple is set to $50. Dr Pepper Snapple's shares closed at $60.22 yesterday. Goldman Sachs...
Market Intelligence Center  Jun 6  Comment 
The option-trade picking algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center have selected a covered-call trade on Terex Corp (TEX) that includes 8.16% downside protection. Sell one contract of the Oct. '14 $40.00 call...
Market Intelligence Center  Jun 4  Comment 
Terex Corp (TEX) is a good candidate for a covered call at the $39.00 level. The Oct. '14 call at that price should fetch a credit of about $3.20, which means the entire position has a net debit of about $36.06. This trade has 5.25% downside...




 

Terex (NYSE: TEX) manufactures equipment for the construction and mining industries. Construction firms such as Fluor (FLR) and Foster Wheeler (FWLT) buy Terex's cranes, backhoes, excavators, and other related equipment to use in residential and commercial development. Terex also manufactures drilling and crushing equipment, as well as high capacity hauling trucks for use by mining companies like Freeport-McMoRan Copper & Gold (FCX) and Southern Peru Copper (PCU).

Demand for Terex's products depends largely on Commodities Prices and global economic growth. When commodities prices increase, Terex benefits from increased demand for its products from the companies that produce commodities. Similarly, when the global economy is expanding, Terex earns more contracts for infrastructure development.

In addition to private sector demand, governments also impact Terex's sales. As countries industrialize, improve transit systems, and build public facilities, the need for construction equipment rises.

Terex's competitors, such as Bucyrus International (BUCY) and Deere & Company (DE), have also reaped rewards from oversea operations. Another competitor,Caterpillar (CAT), began construction on a 350,000 square foot manufacturing site in Shanghai, and other rivals such Liebherr Group and Manitowoc Company (MTW) also increased output capabilities.[1]. If fears of a global recession are realized, Terex and its competitors will suffer from a supply glut that does not match decreased demand for construction equipment.

Business Overview

Terex had a difficult year financially in 2009. It's net sales fell 52% in 2009, and it swung from an operating profit of $174.5 million in 2008 to a $459.9 million loss in 2009.[2] The company focused on cash generation and cost reduction in an effort to take advantage of our strengthened core businesses as Terex plans for the future. As a result, Terex generated $538 million in cash from inventory reductions in 2009.

Business Segments

Terex's business is divided into four segments. The include: i) Aerial Work Platforms, ii) Construction, ii) Cranes and, iv) Materials Processing and Mining.

Aerial Work Platforms (21% of 2009 Revenues)

Net sales for the AWP segment had an extremely tough year in 2009. Net sales for this segment decreased $1.5 billion to $838 million in 2009 when compared to 2008.[3] The company attributed this decline largely to its North American, Europe, and Asia/Pacific markets declining by $1.5 billion, as many rental customers decided to age their fleets rather than buy new ones.[3]

Construction (24% of 2009 Revenues)

The Construction segment had its net sales decrease by $1.2 billion for 2009 when compared to 2008. Terex attributed this to lower machine sales volumes of approximately $935 million.[4] Demand for both compact and heavy construction products was extremely weak in 2009 due to the slowing construction activity.

Cranes (49% of 2009 Revenues)

The Cranes segment had its net sales decline by $1 billion in 2009, compared to 2008. Lower net sales volume, particularly for tower cranes and rough-terrain cranes, decreased net sales by approximately $1.1 billion, as global commercial construction projects continued to slow and oil related energy demand for rough-terrain cranes remained soft. This decrease was partially offset by approximately $200 million of increased sales volume of higher priced crawler and all-terrain cranes.[4]

Materials Processing and Mining (9% of 2009 Revenues)

In 2009, the Materials Processing and Mining segment earned net revenues of $364 million, a $634 million decline when compared to the previous year. The company attributed $578 million of the decline to weakened sales across all product lines, with the remaining $44 million due to foreign exchange rate changes.[5]


Key Trends and Forces

Global spending on infrastructure will impact Terex's sales growth

Rapid growth of building new infrastructures in Emerging Markets has supported demand for cranes. Merrill Lynch sees countries, especially China, mobilizing their vast savings into infrastructure projects in the future[6]. All of Terex's business segments stand to benefit from the international growth if infrastructure spending remains strong. More mature markets, such as the United States and countries in Western Europe, are more focused on rebuilding and maintaining their infrastructures, but represent a significant amount of spending. In 2007, the United States passed a bill to spend $284 billion over the next six years for highway, energy, and mass transit infrastructure[7].

Commodities Prices influence demand for the mining equipment that Terex sells

The Material Processing and Mining division represents a major component of Terex's business. Demand for this segment's products is largely based on mining output. When Commodities Prices rise, production follows. These mining companies need new equipment and replacement products to maintain and expand operations. Customers use Terex's product line for surface mining, which includes extraction of metals, such as copper and iron ore, which is used in steel production. Rising steel prices also impact Terex in a negative way. Terex's manufactured equipment has steel components. As the price of this cost input rises and Terex cannot pass the prices to customers, then profit margins decrease.

I can't help but note the similarity beweten using encrypted memory to stop people sticking your RAM in an esky and TCPA's approach to hardware security. It's a huge logistical issue in itself how long before someone's wearing the Intel decryption key on a T-shirt?Really, the simplest way would be a box over the RAM with a few switches or even a sensitive accelerometer that will cut power and/or purge the RAM (using a small backup battery if necessary) as soon as it is tampered with. Sure, it sounds complicated but I daresay it's going to be easier than an encrypted mechanism.Regardless, it's something of a minority case where somebody gets physical access to a locked down computer and wants to steal data from its memory. As you point out, the people who have the resources to do that sort of thing probably have other methods in their toolbox such as sniffing the bus.Cool hack though.

Competition

Terex's wide range of products (makes equipment for mining extraction and commercial, residential, infrastructure construction) leads it to compete with a variety of firms. While no one company competes against Terex in all sectors, it faces competition from larger corporations such as Caterpillar (CAT), Deere & Company (DE), and international giants, Volvo and Komatsu. In addition to other diversified manufacturers, each division of Terex faces competition from niche firms that focus on a particular part of the market. For instance, Terex Material Processing and Mining Unit shares a market with companies like Joy Global (JOYG) and Bucyrus International (BUCY) that only manufacture mining equipment.

In order to compete better, Terex seeks to improve customer responsiveness, and has hired more professionals to sales and marketing to address this issue[8].

References

  1. [http://www.siteselection.com/features/2006/nov/machinery/ Site Selection Magazine Online
  2. TEX 10-K 2009 Item 7 Pg. 34
  3. 3.0 3.1 TEX 10-K 2009 Item 7 Pg. 38
  4. 4.0 4.1 TEX 10-K 2009 Item 7 Pg. 39
  5. TEX 10-K 2009 Item 7 Pg. 40
  6. Stanford University Research Site
  7. Manitowoc's Fact Sheet
  8. Terex (NYSE: TEX) Form 10-K, FY 2007, "Business Strategy" Page 4-10
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