QUOTE AND NEWS
StreetInsider.com  1 hr ago  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Terex+%28TEX%29+Announces+Joint+Venture+with+Manitex+International/9953850.html for the full story.
Market Intelligence Center  Oct 17  Comment 
After Thursday’s trading in Terex Corp (TEX) MarketIntelligenceCenter.com's patented algorithms uncovered a trade that offers a 8.97% return or 17.99% on an annualized basis (for comparison purposes only), while providing 14.05% downside...
Cranes Today  Oct 14  Comment 
Three press components each weighing at least 200t have been lifted out of a factory in Germany using a 650t Terex Superlift 3800 lattice boom crawler crane.
Forbes  Sep 23  Comment 
Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that...
Market Intelligence Center  Sep 23  Comment 
For a hedged play on Terex Corp (TEX), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Nov. '14 $32.00 covered call for a net debit in the $30.55 area. That is also the break-even stock price for the covered call....
Market Intelligence Center  Sep 18  Comment 
Terex Corp (TEX) is an excellent choice for either a diagonal spread or a covered call expiring in Jan. '15 at the $32.00 level according to MarketIntelligenceCenter.com’s patented algorithms. A covered call on Terex for a net debit of about...
SeekingAlpha  Sep 17  Comment 
By The Value Investor: Terex (NYSE:TEX) continues to disappoint its investors as a profit warning send shares sharply lower at the start of the trading week. A weak order intake and performance of the crane business is this time the reason behind...
TheStreet.com  Sep 16  Comment 
NEW YORK (TheStreet) -- Shares of Terex Corp.a are gaining 0.89% to $32.76 in pre-market trading after the equipment manufacturing company was upgraded to "buy" from "hold" with a $40 price target at Stifel Financial Corp . Analysts at the...
Benzinga  Sep 16  Comment 
In a report published Tuesday, Morgan Stanley analyst Nicole DeBlase reiterated an Overweight rating on Terex Corporation (NYSE: TEX), but lowered the price target from $51.00 to $44.00. In the report, Morgan Stanley noted, “We still see a...
Benzinga  Sep 16  Comment 
Analysts at Stifel Nicolaus upgraded Terex (NYSE: TEX) from Hold to Buy. The target price for Terex is set to $40. Terex shares have dropped 1.81% over the past 52 weeks, while the S&P 500 index has gained 16.88% in the same...
Benzinga  Sep 16  Comment 




 

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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