Following Terex Corporation's release of its fourth quarter and full year 2018 results, Terex Cranes is pleased to share these, along with its segment-specific, results.
Terex Corporationannounced fourth quarter 2018 net sales of $1.2 billion, up 16% versus Q4 2017 net sales of $1.1 billion. For the full year 2018, Terex reported net sales of $5.1 billion, an increase of 18% versus net sales of $4.4 billion for the full year 2017. Terex also announced an agreement to sell its Demag Mobile Cranes business and a decision to exit the mobile crane product lines manufactured at its Oklahoma City facility. The Demag Mobile Cranes business sale, which is subject to government regulatory approvals and other customary closing conditions, is expected to close in mid-2019.
Terex will continue to manufacture and support several specialized crane products including Terex rough terrain cranes for the global market in Crespellano, Italy, Terex tower cranes in Fontanafredda, Italy, and Terex pick and carry cranes in Brisbane, Australia. Terex will continue to manufacture Terex Utilities products at its Watertown, South Dakota facilities and the Oklahoma City facility will continue to be a major Terex manufacturing center, focusing on telehandlers, aerial re-manufacturing, and various products for Materials Processing. Both Terex Utilities and the Oklahoma facility will become part of the Terex AWP business segment.
"Overall, our global team executed well in the fourth quarter, completing a strong year for Terex," remarked John L. Garrison, Terex Chairman and CEO. "We continued to implement the Focus, Simplify and Execute to Win elements of our strategy and made significant progress in our Commercial Excellence, Lifecycle Solutions, and Strategic Sourcing priority areas. We also continued investing to improve the experiences of our customers and grow our businesses. We will continue to support all of our customers, including those affected by the changes in our Cranes segment, as we execute our strategy to be a high performing, customer-focused company."
Sales for the Terex Cranes segment grew 12% compared to 2017 to $365 million. For the full year, the Cranes segment achieved net sales of $1.3 billion, growing 10% versus last year. The business made improvements in materials management and operational performance, resulting in a return to profitability in Q4.
Steve Filipov, President of Terex Cranes commented, "In Q4 the Cranes segment succeeded in overcoming the material supply challenges that impacted our performance earlier in 2018 - I'm proud of the team for meeting our commitments to better fulfill customer demand and return to profitability. The sale of the Demag Mobile Cranes business to Tadano Ltd. is based on strong industrial logic. Bringing these two complementary businesses together will combine Tadano's 100 years of experience with Demag Mobile Cranes' nearly two centuries to create a lifting company capable of bringing new leadership to the industry and continuing to create innovative lifting solutions. I also want to assure our customers that our parts and services team remains firmly in place and committed to providing them with world class support for all of their Terex cranes, and will support their Demag cranes through the transition to the new owners."