OshKosh (OSK) reported to investors that instead of earning 1.40-1.50 per share, it would actually be losing about 1.22-1.32 per share. This loss was due to 175 Million dollar non cash charge related to it's subsidiary Geesink. In response to the OshKosh news, nearly the entire heavy machinery sector was negatively effected.
Investors concerned over a slowing US economy were releaved by Terex's 2007 annual earnings. The equipment manufacturer beat the street as international demand (70% of revenue) remained strong. Cranes, mining equipment, and aerial work platforms (outside the US) showed the greatest improvements. Terex's backlog for 2008 increased to $4.2 billion.
Analysts at BMO Capital Markets sees the international trend for mining, construction, and lifting equipment continuing. Terex has profited from the boom in these segments. The analyst calls for 2008 revenue of $10.2 billion and 2009 of $11.4 billion.
Terex, along with other heavy equipment manufacturers, saw share prices fall as fears hightened that the U.S. would slip into a recession. A recession causes demand for construction equipment to fall and would hurt the domestic sales of company's competiting within this industry. Global sales would decline if international economies followed the U.S. into recession.
