Thu, Oct. 1, 8:33 AM
Fri, Sep. 25, 11:20 AM
- Barclays analyst Robert Wertheimer begins coverage of the U.S. machinery sector with a negative view, seeing consensus estimates too high across the board with revenue for the current cycle already peaking for most of the sector.
- The analyst expects a sharper than expected downturn for North American trucks, with another peak level eight years away; the tractor supercycle is only two years in a downturn, while the prior two supercycles saw seven consecutive down years in machinery sales, Wertheimer says.
- Of the 15 companies in the firm's sector coverage universe, only two are rated Overweight: United Rentals (URI +1.5%) and Allison Transmission (ALSN +0.4%).
- Started with Equal Weight ratings: Actuant (ATU -1.2%), AGCO (AGCO +1%), Caterpillar (CAT -1%), Joy Global (JOY -2.9%), Lincoln Electric (LECO -0.8%), Manitowoc (MTW -1.9%), Terex (TEX -0.7%) and WABCO (WBC -1.2%).
- Rated Underweight: Deere (DE -0.3%), CNH Industrial (CNHI +1.5%), Cummins (CMI -0.8%), PACCAR (PCAR -1%) and Navistar (NAV -2.9%).
Thu, Sep. 24, 11:22 AM
- Caterpillar's (CAT -6.3%) latest woes are wreaking havoc on other machinery stocks, including Deere (DE -3.4%), Joy Global (JOY -2.4%), Cummins (CMI -2.8%) and Terex (TEX -5.6%).
- CAT said today it is lowering its sales outlook for the year and will cut as many as 5K jobs between now and the end of 2016, and that sales and revenue could drop in 2016 for a record fourth straight year.
- Earlier this week, CAT gave its latest update on three-month rolling sales figures, which have now declined for 33 straight months.
Mon, Sep. 21, 8:04 AM
- Terex's (NYSE:TEX) China president is optimistic about the long-term outlook for the Chinese construction market, although he expects to see half of existing mainland machinery makers close amid a four-year market downturn.
- China is estimated to contribute 10%-15% of Terex's global sales by 2018, up from 5%-10% currently, Ken Lousberg told Reuters.
Thu, Sep. 17, 9:15 AM
Thu, Sep. 17, 8:00 AM
- Terex (NYSE:TEX) -7.4% premarket after Finnish crane company Konecranes (OTC:KNCRF) lowered its full-year financial guidance; the two companies agreed to a merger last month.
- Konecranes cites rapidly changing market sentiments within its Business Area Equipment segment, which are expected to lead to lower than expected deliveries during the rest of the year.
- Konecranes now sees 2015 sales slightly higher than in 2014, and expects 2015 operating profit roughly the same as 2014; the company previously expected 2015 sales to be higher than in 2014 and 2015 operating profit to improve from 2014.
Wed, Sep. 9, 12:29 PM
- Terex (TEX -0.7%) is downgraded to Underweight from Neutral with a $23 price target, lowered from $25, at J.P. Morgan, which is concerned that the merger deal with Konecranes fulfills several criteria that could result in failure.
- The firm sees likely downside risk to the synergies and restructuring savings expected from the deal, and says the cultures of the two companies appear meaningfully different, especially given each entity’s geographic focus and focus on services vs. new product sales.
Tue, Aug. 11, 12:45 PM
Tue, Aug. 11, 9:16 AM
Tue, Aug. 11, 8:58 AM
- Terex (NYSE:TEX) +22.7% premarket in reaction to its merger with Finnish competitor Konecranes (OTC:KNCRF), but most analysts are not impressed, citing a lack of real synergies and potential European antitrust problems.
- BofA analysts think most of the synergies would be within the materials handling and port solutions business because there is very little elsewhere, and find it odd that TEX would merge with a foreign company that is under a CEO transition.
- Morgan Stanley says it is "completely surprised" by the deal, and notes that TEX has yet to name a CEO and the Konecranes CEO lacks experience.
- ISI Evercore upgrades TEX to Buy with a $35 price target, up from $27.
Tue, Aug. 11, 3:26 AM
- Terex (NYSE:TEX) and Finnish competitor Konecranes (OTC:KNCRF) have agreed to an all-share merger, creating a crane and materials-handling supplier with a combined $10B in sales.
- The planned tie-up, which will be located in Finland and called Konecranes Terex, will be owned 60% by the shareholders of Terex and 40% by Konecranes investors.
- Terex climbed 11.7% in after-hours trading on reports of the merger.
- Previously: Bloomberg: Terex in talks to merge with Finnish rival Konecranes (Aug. 10 2015)
Mon, Aug. 10, 5:09 PM
- Terex (NYSE:TEX) +12% AH after Bloomberg reports it is in advanced talks to merge with Finnish crane and construction machinery maker Konecranes (OTC:KNCRF), and an agreement could be announced as early as this week.
- Konecranes, which serves manufacturing and process industries, shipyards, ports and terminals, had revenue of €~2B and net income of €74.4M in 2014.
Wed, Jul. 29, 5:47 PM
Mon, Jul. 27, 12:29 PM
- Goldman Sachs analyst Jerry Revich cuts his view on the machinery sector to Cautious from Neutral given a continued challenging environment, and downgrades Manitowoc (MTW -2.8%), Terex (TEX -3.6%) and Navistar (NAV -1.2%) to Sell from Neutral.
- Revich notes a challenging crane demand outlook due to a challenging outlook for commodity capital expenditure, a slowing infrastructure investment for commodity export regions, and high crane capital stock following a 10-plus year build-out cycle.
- On NAV, the company's debt, pension, warranty and truck trade-ins are "high and rising" amid softening used truck prices and U.S. trucking rates, which could push out its margin recovery story, Revich writes.
- Deere (DE -0.7%) and AGCO (AGCO -0.6%) are upgraded to Neutral from Sell even as the analyst is negative on the end market outlook for agriculture equipment.
Thu, Jul. 23, 7:35 PM
- Caterpillar (NYSE:CAT) fell 3.5% in today's trade after cutting revenue guidance for the year during its Q2 earnings report while noting a "relatively stagnant" global economy.
- With sales running at ~25% below the level of three years ago, analysts in today's earnings call asked CEO Doug Oberhelman if he thought deeper cost cuts are needed; while the CEO promised to slash spending if the global economy gets much worse, he said CAT wants to retain enough capacity so it can be ready to take advantage of an eventual recovery.
- Oberhelman tries to see the bright side of things: Companies continue to reduce spending on equipment, maintenance and even spare parts, so CAT's mining "trucks and ancillary equipment are being used longer and longer and longer," meaning the miners will have to buy new trucks at some point.
- Sales will heavily depend on what happens to the global economy, but CFO Brad Halverson says if CAT's forecast of lower H2 sales proves accurate, it would be the first time since the 1930s the company has suffered three straight years of decline.
- Wells Fargo keeps its Market Perform rating on CAT while saying the demand trends indicated by the company may have a negative implications for Cummins (NYSE:CMI), Terex (NYSE:TEX) and Deere (NYSE:DE).
Fri, Jul. 17, 9:49 AM
TEX vs. ETF Alternatives
Terex Corp is a lifting & material handling solutions company. It is engaged in delivering reliable, customer-driven solutions for commercial applications including construction, infrastructure, quarrying, mining & manufacturing, among others.
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