Demand For Cranes Lifts Terex’s Backlog
The Machinery-Construction/Mining group has been moving up in IBD’s 197 Industry Group Rankings. One of the stocks leading the move is Terex (TEX).
Monday’s better-than-expected ISM manufacturing report pushed the stock above its 10-week moving average, putting it in buying range. Volume has been light on the rebound, however.
The stock may also be shaping a flat base. The stock has corrected 10% off its June 4 high.
Terex makes a broad range of equipment for the construction, military, mining, waste management and utilities markets.
Its products includes everything from cranes to hydraulic hammers to trailers.
Terex’s profit growth declined from 2000 to 2002 as the economy slowed. In 2003, it lost 7 cents a share.
It bounced back in 2004, and earnings grew 57% and 117% the past two years. Analysts see income rising 40% to $5.59 a share this year.
The company’s first-quarter earnings jumped 56% to $1.17 a share, or 11 cents ahead of estimates. Its after-tax margin improved to 6.1% from 4.5% in the year-ago quarter.
Terex’s backlog increased 56% to $3.4 billion, helped by strong demand from its North American crane business.
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