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Terex sells off Demag Mobile Cranes for $300M

Terex Corporation have released its third quarter 2018 results and reported sales of $1.2 billion, up 11 per cent versus Q3 of 2017, with increased sales and backlog in its aerial work platform (AWP) and materials processing (MP) business segments. The results were driven by continued implementation of the company's Execute to Win business strategy and its focus on meeting the growing needs of customers during a period of broad-based growth. Sales for Terex Cranes segment were flat compared to 2017 at $301 million. Overall demand for Terex Cranes' products is stable with pockets of growth, and with Q3 backlog up 20 per cent versus 2017, the segment is positioned for stronger performance in Q4. "We continue to see strong global demand for our products. We increased sales, bookings and backlog in the quarter," said John L. Garrison, Terex chairman and CEO. "We continue to implement our Execute to Win priorities. We are seeing benefits from our Commercial Excellence Initiative positively impact customer experiences and our market performance. "At the same time, we are executing plans in Strategic Sourcing and Lifecycle Solutions that are designed to significantly improve future performance." According to Steve Filipov, president of Terex Cranes, their new products, including the Demag line of all-terrain cranes, have all been selling really well, showing him that the market for their products is still strong. "Our Utilities business is consistently meeting customer needs in a relatively stable market and our Tower Cranes business continues to grow and execute well with new products and customer-focused solutions," Filipov continued. "We have a strong order book and remain committed to improving Cranes performance and meeting the need of our customers."

Terex Corporation has agreed to sell its Demag Mobile Cranes business to Tadano for around $AU301 million.

Terex will also exit the North American mobile crane product lines manufacturing in its Oklahoma City facility.

The transaction includes manufacturing facilities in Zweibrucken, Germany along with multiple sales and service locations.

Demag manufactures and sells all terrain cranes and large crawler cranes and has been part of Terex for almost two decades.

Terex Chairman and Chief Executive Officer John Garrison said the dedicated Demag Mobile Cranes team members have made significant contributions to Terex and the crane industry.

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“The sale is based on strong industrial logic, as the Demag Mobile Cranes business will become part of a global crane company with complementary products and capabilities,” he said.

“We are pleased to have entered into this agreement with Tadano, a strategic buyer who values the Demag Mobile Cranes brand, technology, distribution network and team members.”

Terex will continue to manufacture Terex Utilities products and Rough Terrain Cranes for the global market and continue to manufacture its pick and carry cranes in Brisbane, Australia.

“These are strong businesses that will continue to be an important part of Terex,” Garrison said.

“During these transitions, our global team is committed to providing exceptional service to all of our global customers, including those affected by these changes.”

Tadano Ltd. Representative Director, President and Chief Executive Officer Koichi Tadano said the move was a strategic acquisition that offers Tadano considerable scope for growth.

“The addition of the well-respected Demag brand of all terrain cranes and large crawler cranes range extends our product lines and options for customers,” Tadano said.

“The addition of the Demag branded mobile crane product lines will enhance our global position in this segment.  We believe that the Zweibrucken facilities and its global team members, as well as the current distribution partners, are valuable to the future success of the business.”

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