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Terex Corp.

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Terex Corp. has acquired multiple industrial manufacturers and teamed them under the Terex brand. Many of its acquisitions have extensive histories resulting in Terex often retaining the original brand name in conjunction with its own. These acquistions propelled Terex into a global equipment manufacturer offering a range of multi-purpose and multi-functional equipment adaptable for wide use in the construction, mining, forestry, quarry and aggregate, and roadbuilding industries.[1] 

For construction and roadbuilding applications, Terex produces equipment such as cranes, crushers, wheel loaders, graders, motor scrapers, compactors, rollers, aerial work platforms, dumpers, and trailers. Much of this equipment can also be used in mining and orestry. It also currently manufacturers the world's largest excavator—the 1000-ton RH400—designed by Terex O&K. The RH400's bucket capacity is 90 metric tons and has an engine output of 4,400 horsepower. In addition, Terex manufactures a range of material handling and loading machines specifically designed for forestry operations. Its range of mining equipment includes some of the world's largest hydraulic mining shovels, rock drill machines and attachments, and first highwall mining system on the market that was capable of mining parallel entries to predetermined depths in a highwall coal seam: the SHM miner.[2]

Terex currently ranks No. 314 on the 2007 Fortune 500 list (No. 9 amongst industrial and farm equipment manufacturers), with 2006 annual revenues of US$7.6 billion.[3] It currently trades on the NYSE under the name TEX.

The Terex name is taken from the Latin "terra" (earth) and "rex" (king).


[edit] History

Terex, throughout its history, has had a variety of owners, but the multi-subsidiary conglomerate that exists today is the result of real estate investor Randolph W. Lenz. Lenz, an ex-marine with a psychology degree from the University of Wisconsin, purchased the company from General Motors in 1986.

[edit] Lenz's Early Purchases

Lenz had been investing in real estate since the 1960s, but it wasn't until 1981 that he began investing in heavy equipment manufacturing companies. His first purchase was FWD, a bankrupt manufacturer of snowplows and fire trucks.

After the success of his initial purchase, Lenz decided to buy more distressed companies at bargain prices. He acquired Northwest Engineering for $1,200 in 1983. It had a 50-year history of building cranes, power shovels, and draglines. However, Lenz decided to streamline the company so it dealt with spare parts instead of assembling new equipment.

Lenz saved another company from bankruptcy when he bought the construction division of Bucyrus-Erie Co. in 1985. He purchased the company for $9 million, and it had a record of producing annual sales in excess of $20 million.[4] Lenz revived the company and by the end of the year it was developing a new backhoe.

[edit] Establishing and Expanding Terex Corp.

In 1953 General Motors acquired Euclid in what would have a huge impact on the Terex brand. GM purchased the heavy equipment company, worth $33 million, at a bargain price of $20 million. Euclid continued to develop large equipment and eventually launched an antitrust suit under the Clayton Act against GM. Euclid accused GM of being a dominant business that damaged the competition in the off-road hauler and earthmoving market. After eight years of fighting the suit, GM gave up and sold the Euclid Division to White Motor Corp. in 1968. Despite giving up this division, GM continued production of crawlers, front-end loaders, and scrapers under the Earth Moving Equipment Division of the Terex brand.[5]

In 1986 Lenz purchased Terex USA from General Motors. By 1979, its annual sales exceeded $500 million and it employed 5,000 people.[6] Despite its success, GM decided to sell Terex so it could focus on automobile production. It was initially sold to a German construction manufacturer, IBH Holding AG in 1980. However, IBH suffered financial troubles, filed for bankruptcy, and ownership of Terex returned to GM three years later. At that point, Terex was subdivided into Terex Equipment Ltd., based in Scotland, and Terex USA in the United States.

Lenz purchased both parts of Terex in 1986 and 1987 respectively. However, Lenz decided to close U.S. operations and focus on the Scottish factory, which manufactured articulated dump trucks, wheel loaders, scrapers, and other large construction machines.

Throughout the '80s, Lenz continued acquiring near-bankrupt companies, building his empire of heavy industry. He purchased Koehring Cranes & Excavators, Benton Engineering, and Unit Rig and Equipment Co.

In 1988 Lenz decided to name his company Terex Corp., with all other purchases as subsidiaries of Terex.

In 1989 Lenz made possibly his biggest purchase when he bought the marine and trailer divisions of Fruehauf Corp. for $231 million.[7] In two years, the Fruehauf trailers accounted for two-thirds of Terex's sales ($784 million).[8]

Lenz added a couple more acquisitions before he retired. He purchased Mark Industries, Clark Equipment Co., and PPM Cranes.

[edit] Turning Terex Around

By the early '90s, Lenz had extended Terex so far it was nearing bankruptcy. As a result he began delegating more responsibility. Lenz hired Ronald M. DeFeo as president and COO in 1992 and put him in charge of the company's heavy equipment group.

DeFeo's appointment proved successful when he quickly turned the Clark acquisition around by closing a number of factories and letting a number of employees go. Clark's return to profitably allowed the company to be resold, diminishing Terex's demanding debt.

As a result, DeFeo was made Terex's CEO in 1995 and under his leadership the acquisitions continued. Lenz believed DeFeo's leadership would allow Terex to succeed.

"Since joining the company, Ron has been very effective in realigning Terex Corp. by sharply trimming overhead costs and disposing of unprofitable product lines and operations while stimulating the introduction of new products in the marketplace. He has brought in new management talent throughout the Terex organization, and he has also been instrumental in instilling operating discipline throughout the company. The results of his efforts became quite evident in 1994 when Terex returned to profitability after reporting a bottom line loss of $66.5 million in the previous year," said Lenz.[9]

[edit] New Acquisitions Lead to New Markets

After purchasing PPM Cranes, Terex Cranes was formed in 1995 and soon became one of the world's leading hydraulic crane manufacturers. This resulted in 1996 becoming the first profitable year for Terex since the 1980s.

In 1998 Terex acquired more crane-related companies: Holland Lift International B.V., American Crane Corp, Peiner HTS, and Cru Comedi S.p.A.

However, Terex did not limit itself to the world of crane development. In the late 1990s it invested heavily into the earth moving business by acquiring O&K Mining, GmbH, and Powerscreen International. Then Terex moved into the light construction equipment industry by purchasing Amida Industries Inc.  And finally the paving business in 1999 by acquiring Cedarapids. [10]

In 2002 Terex acquired the aerial work platform manufacturer Genie Industries.

In March 2008 Terex acquired ASV Inc.

In July 2009 Terex completed the acquisition of Fantuzzi Industries, who manufacture gantry cranes, mobile harbor cranes, and other seaport equipment.

[edit] The Company Today

With more 100 subsidiaries, Terex can be considered a large construction conglomerate. Terex's head offices are based in Westport, Connecticut, USA. Ronald M. DeFeo remains the company's CEO. The company's 2006 annual revenues are listed at US$7.6 billion.

[edit] Equipment List

[edit] Aerial Devices

[edit] Aerial Work Platforms

[edit] Asphalt Production & Paving

[edit] Attachments & Tools

[edit] Cable Placers

[edit] Compaction

[edit] Concrete Preparation & Finishing

[edit] Concrete Production & Paving

[edit] Cranes

[edit] Crushing & Screening

[edit] Digger Derricks

[edit] Drilling

[edit] Dumpers

[edit] Excavators

[edit] Generators

[edit] Graders

[edit] Highwall Mining

[edit] Lighting

[edit] Loader Backhoes

[edit] Material Handling

[edit] Off-highway Trucks

[edit] Scrapers

[edit] Telehandlers

[edit] Trailers

[edit] Wheel Loaders

[edit] References

  1. Homepage. Terex. 2008-09-22.
  2. Industries. Terex. 2008-09-22.
  3. Fortune 500. Money CNN. 2008-09-22.
  4. Terex Corporation. 2008-09-22.
  5. Euclid and Terex History. GM Wiki. 2008-10-27.
  6. Terex Corporation. 2008-09-22.
  7. Terex Corporation. 2008-09-22.
  8. Terex Corporation. 2008-09-22.
  9. Ronald Defeo Named Terex Corporation Chief Executive Officer. Find Articles. 2008-09-22.

[edit] External Links