Terex Corporation (TEX - Free Report) , a global equipment manufacturer, has embarked on a restructuring plan, according to Bloomberg. The company is planning to either close or sell several of its businesses which will result in job cuts.
The company is expected to eliminate 386 workers as part of the restructuring of its German compact construction operations, which will cost it $11.7 million. It will also cut about 26 jobs in the material-handling and ports segments.
Terex Corporation, which is among the top players in the machinery construction and mining industry along with Astec Ind Inc (ASTE - Free Report) , H&E Equipment Services Inc (HEES - Free Report) and Caterpillar Inc Del (CAT - Free Report) , will close the units which were generating poor returns. The 1.8% reduction of staff will improve the company’s operating results in 2013.
Terex also intends to restructure its material handling and port solutions segment. The move entails closing of a production site in Spain, which has some under-performing cranes and port equipment.
Terex is a global equipment manufacturer catering to the construction, infrastructure, and surface mining industries. The company’s manufacturing facilities are located in the U.S., Canada, Europe, Australia, Asia, and South America. It also offers a complete line of financial products and services to assist in the acquisition of equipment through Terex Financial Services.
The company has restructured its business portfolio, transforming from a mining and construction equipment company to a more diverse manufacturer of capital goods machinery with strong market positions in specialty areas.
Terex aims at improving margins and earnings and generating cash flow to help reduce its debt level. Its Aerial Work Platforms segment continues to benefit from North American rental channel demand. Crane segment’s performance is expected to remain strong in North America and in certain developing market regions in 2013.
Terex Corporation currently retains a short-term Zacks Rank #3 (Hold).