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Strong third quarter revenues tempered by weaker outlook

Global minerals processing equipment manufacturers Terex and Metso have reported strong returns for the third quarter of 2019, as the sector braces for softening global demand.

Terex Materials Processing Systems (Terex MPS), one of two business streams under the Terex Corporation, generated $USD339 million ($AUD492m) in sales for the three-month period ending 30 September. This was an increase of 8 per cent versus the same quarter last year – or 12 per cent, excluding the impact of foreign exchange rates.

The Terex MPS business includes the brands Finlay, Powerscreen, CBI, Ecotec and Fuchs, as well as other concrete products, and washing and minerals processing systems.

According to the company, third quarter revenue was driven by global demand for its crushing and screening products, material handlers, cement mixer trucks and load and haul equipment. The company reported total backlog sales of $USD264 million ($AUD383m), while bookings in the quarter reached $USD236 million ($AUD342m).

“We had an excellent quarter in materials processing, thanks to strong operational execution across our businesses,” Terex MPS’s president Kieran Hegarty said.

“Looking ahead, our bookings and backlog levels are pointing to softening demand in our global end markets. Throughout the cycle, we will continue to invest in product and service innovation and geographic expansion that will enable us to serve more customers globally.”

Hegarty said the company’s manufacturing investments in Northern Ireland and India were progressing well. “These facilities will enable even more growth in the expanding environmental sector and position us to continue to grow in India and the broader Asian markets as customers adopt our mobile processing technology.”

Terex Corporation’s overall financial performance, which also accounts for the company’s Aerial Work Platforms segment, saw net sales of $USD1 billion ($AUD1.45b), down 6.8 per cent on the third quarter of 2018.  On a foreign exchange-neutral basis, comparative global sales declined 4.7 per cent.

Softening headwinds

Meanwhile, Finnish mineral sector manufacturer Metso reported a 17 per cent sales increase, totalling €2.6 billion ($AUD4.2b).

“Activity in our end markets remained healthy and is visible in the strong order intake for services. Aggregates equipment orders were up slightly despite a seasonally low quarter in the Northern Hemisphere and the Indian market remained softer than a year ago,” Metso president and CEO Pekka Vauramo said.

The results follow Metso’s recent acquisition of Canadian mobile screening and crushing equipment manufacturer McCloskey International in June, and the merger of Metso Minerals with rival Finnish equipment manufacturer Outotec in July.

“The McCloskey acquisition in Canada was successfully closed right after the end of quarter,” Vauramo said. “This deal expanded our offering of mobile crushing and screening equipment in the aggregates industry and is the biggest acquisition for Metso since the Svedala acquisition in 2001.

“Major steps were taken during the quarter in the planned combination of Metso Minerals and Outotec and in the formation of the future Neles, an independent valves business. We are on the road to creating two global leading companies.”

CAPTION: Terex MPS President Kieran Hegarty at the opening of the new Terex Campsie facility, in the UK.

 

The Terex Cedarapids CRC1150S.
Metso’s Nordberg LT160 Lokotrack.

The McCloskey I44R mobile screen.

 

 

 

 

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