Westport’s Terex Corp. Wednesday reported a 35 percent increase in quarterly earnings as high commodity prices and a continued developing-world infrastructure boom created strong demand for its cranes and heavy construction machinery.
Second-quarter profit rose to $236.3 million, or $2.32 a share, from $174.6 million, or $1.66 a share, a year ago. Sales rose 25 percent to $2.94 billion.
Analysts surveyed by Reuters Estimates, on average, had expected the company to report earnings of $1.98 a share on sales on $2.78 billion.
Terex said it was raising prices to offset the rising cost of steel and other key supplies.
Terex said it expects new prices to make up for rising costs, but it warned that operating margins would contract for the rest of 2008 due to the lag between when the higher costs are incurred and price rises take effect.
The company reiterated its previous forecast for full-year earnings in the range of $6.85 to $7.15 a share on sales of $10.5 billion to $10.9 billion.
While Terex shares jumped in after hours trading Wednesday, they closed down almost 7 percent today in line with an overall market drop.
