Terex downgrades 2008 guidance

The manufacturer said it expected earnings per share to be 5% below the low end of its previous guidance, which was between $US5.69 ($A8.75) and $5.79 per share. This most recent update translates to earnings of approximately $5.40 per share. Terex said it was currently in compliance with all of the financial covenants under its bank credit facilities and indentures and an associated reduction in the value of its goodwill estimated would not affect its compliance.“We continue to feel the negative effect that credit availability has on customer sentiment and demand for our products, particularly in our construction, materials processing and aerial work platforms businesses, as well as our smaller crane and tower crane product lines,” Terex chairman Ron DeFeo said.“In response to the present economic environment, we are taking and will continue to take aggressive actions to reduce costs and inventories in all of our businesses. “Our actions include reductions in the [work] force, significantly curtailed production schedules in affected businesses, including temporary and permanent factory shutdowns, facility consolidations, the rescheduling of incoming raw materials and reducing executive compensation costs.”Terex said it would release its fourth calendar quarter and calendar year 2008 financial results on Wednesday, February 11. The company recorded net sales of $US9.1 billion in 2007.

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