Terex, famous for their mini diggers for sale, come out of the recession under CFO's auspices

In 2002, Phillip Widman accepted the role of Chief Financial Officer at Terex Corp., the construction equipment manufacturer who are well known for their brand of mini diggers for sale. The company was undergoing a period of rapid expansion, and marshalling this was one of Widman's key responsibilities, and also one his most challenging. Terex, who aside from mini diggers also manufacture a range of heavy equipment and cranes, were, at that time, ploughing through acquisitions, with 11 company purchases taking place between 2002 and 2007. In the same time period, operating profit increased 12-fold and sales increased by 300 percent. However, 2008 saw the global economic recession hit, and Terex, like many companies, suffered greatly, with orders vanishing into thin air, and sales for all product lines dropping by huge margins, sometimes by up to 80 percent. Or, as Widman succinctly put it, during an interview at the firm's Connecticut headquarters, We hit the wall.The recession bit so virulently, that by the beginning of 2009 Terex was haemorrhaging money. Widman was forced, like hundreds of others like him across the world, to confront the fact that they were now operating in an entirely different economic reality. As a result, his job became focussed upon devising cost cutting measures, in order to stabilise the company's finances. As Widman commented, You take all the actions you need to do to stop the bleeding.
This involved making tough decisions, and Terex were forced to close or merge many of their manufacturing plants, cut the hours of work that members of staff undertook at the factories, and freeze much of their spending. Widman said, You’re down to cutting at the bone sometimes. You’ve just got to be very careful about going too far.

Other measures included laying off 30 percent of the work force, and instituting a 10 percent salary cut for all remaining employees, right up to corporate management.

2009 continued to go badly for Terex, with their falling sales putting them at a real risk of violating certain conditions of their bank loans. Widman was forced to agree amendments with their creditors, which bought the company time from having to meet debt payments saying, We needed some escape valves.

In mid-2009, Widman and Ron DeFeo, the chief executive officer of Terex, made the decision to take advantage of the nascent recovery of the stock exchange, and sold stock and bonds worth $600 million, using the money to both pay back debts owed to the banks, and to give themselves the manoeuvrability of cash liquidity. Widman said, You do it when you can, as opposed to when it’s too late and you can’t get the money.

They then sold the arm of the company which makes mining equipment to Bucyrus International Inc. for $1.3 billion, comprised of $0.3 billion Bucyrus shares, and $1 billion in cash. The Bucyrus shares were given on condition that Terex would keep them for at least 12 months, so Widman purchased derivatives which were linked to a variety of shares in companies similar to Bucyrus, in order to ameliorate the risk of a drop in Bucyrus share prices. Widman said:

Their volatility is very high, so we had to look at how we could potentially hedge that risk.

Widman also decided to utilise bundles of derivatives to counter the risk of fluctuating exchange rates affecting foreign-generated revenue. Widman said:

We’re trying to maintain a buffer or a smoothing. I’m not going to take a position that’s really dramatic.

These measures saw Terex enter the middle of 2010 with significantly more cash available than had been the case one year earlier, with $1.5 billion available, and a further $500 million from a credit facility. This money, Widman says, could be used to begin a new campaign of acquisitions, We’re an acquisitive company, and if somebody else can’t survive, we could potentially take advantage of that. We don’t necessarily want to buy very troubled businesses, but good businesses in troubled situations.


As of the interview, no concrete target for an acquisition has been identified, with sellers, who are also still recovering from the debilitating effects of the recession, asking for too much money, with Widman saying, There are a lot of natural combinations that should occur, but the industry hasn’t consolidated very much.

However, Terex's fortunes are recovering, with sales rising once more, and this has allowed the working week at the factories to be re-extended, and salary cuts to be rectified, with Widman saying, We’re producing at a lot higher levels than last year.

The figures from 2009 saw Terex spending $100 million per month on materials, down from $300 million per month in the pre-recession days of 2008. 2010 has seen them rise back to a level of $200 million per month.

Widman predicts that Terex should be able to meet their target of posting a per share profit by the end of 2010, with $4.5 billion worth of sales for the year. He also said that 2013 should see Terex have doubled its revenue, without any new acquisitions. He said:

We think we can taste it, but it’s not going to be as easy as it might have been two or three years ago.

This is partially because Widman is targeting sales growth in new areas. The US and Europe are no longer the be-all and end-all of markets, with countries such as Brazil, China and India increasing in importance month by month. Widman said:

The developed parts of the world are not going to grow as much. In terms of where we see spending, certainly China’s at the top of the list for the next decade or two.

Consequently, Terex is working to significantly expand their operations throughout all three of those countries. Whilst potentially lucrative, there are a labyrinth of new challenges, involving local practices, laws and intellectual property legislation. Widman said:

We’ve made some mistakes.

An example is the sale of an excavator, designed in Germany, to a Chinese firm. In China, the vehicle was utilised virtually non-stop, 7 days a week, whilst it had been designed under the assumption that it would work for 40 hours per week, So you need a different ruggedness, concluded Widman.

Widman was born in Detroit, Michigan, and went on to achieve a Masters degree in Business Administration, awarded by Eastern Michigan University. He worked for Unisys Corp. for more than a decade, before moving to ABB Asea Brown Boveri Ltd, becoming the Chief Financial Officer. He then moved to Philip Services Corp. as Chief Financial Officer, and orchestrated the restructuring of their debt, saying, I liked it from an experience standpoint; it was hell going through. He accepted a position as Chief Financial Officer with Terex in 2002, consolidating the company during a period which, not only did the recession hit, but Terex's make-up was fractured and de-centralised. Widman said:

I had to build the whole finance organization. We didn’t have information technology; it was whatever the guys at the local businesses had.

DAF Trucks

An exciting moment in the world of trucks recently with the unveiling of one of the largest both in size and structure alongside figuratively, the IAA 2010 in Hanover welcomed the arrival of the bran new 12 - tonner LF45 parallel hybrid truk from daf trucks.

The new vehicle which enters production at the end of the year, was a collaborative development between Leyland Trucks Ltd, Eaton and Eindhoven University of Technology after an extensive two year field text that looked at how daily use with consumers both in the UK and on the continent.


Information about the DAF LF45 Hybrid.

It's fitted with a 4.5 litre PACCAR FR diesel engine which acts in complience with ultra low EEV emission requirements without a soot filter.

Producing a max power of 118kW / 160hp and an electric motor installed next to the clutch and gearbox, it is able to provide drive as well as working as a generator. During braking, energy is released and depending on the degree of charge, the lithium-ion batteries determine from the centralised computer, when the diesel engine needs to provide the drive, and when the electric motor should be used.

It is also fitted with a 'start / stop' system.

A transformer comes with the DAF LF Hybrid which is used to change alternating current that has been supplied by the generator to direct current for use with batteries.

To begin with, DAF will supply the vehicle in France, Belgium, Germany, the UK and the Netherlands. If successful, it will then be introduced to other markets.

There are plenty of high spec daf trucks for sale available to purchase for your business from specialist construction trading websites.

JCB 3CX for sale

JCB has decided to join forces with the Michelin Power CL as the original equipment for its latest models of the jcb 2cx, jcb 3cx

JCB has chosen the MICHELIN Power CL as original equipment on its latest 2CX, 3CX and 4CX backhoe loaders. This is in addition to the MICHELIN XMCL which is already the OE radial option.

After extensive development and rigorous testing at JCB's headquarters based in Rocester the parts were put to the test. The tyre was chosen after these tests which were very severe - they needed to make sure that the materials could cope with the rigours of life on and off the road. The power CL is a cross- ply agro - industrial type designed with specifics to enable the use of backhoe loaders, telescopic handlers and compact wheel loaders.

Another added benefit of the tire features is a special damage - resistant tread area something called a closely spaced central lug pattern. This minimises punctures and coupled with a rubber compound, reduces tearing in harsh day to day conditions.

The cross-ply casing of the Power CL further enhances the tire’s resistance to punctures and impact damage due to the type and number of plies.

Because of how the casing plies are positions, they ensure very high levels of sidewall rigidity which thus in turn provides excellent lateral and vertical stability which is absolutely crucial for telescopic handlers to be able to work a their full extension - whilst also providing excellent sidewall protection.

There are five sizes to be fitted to the new 2CX, 3CX and 4CX and these are:

340/80 – 18 (12.5 – 18) 340/80 – 20 (12.5 – 20) 400/70 – 20 (16.0/70 – 20) 480/80 – 26 (18.4 – 26) 440/80 – 28 (16.9 – 28)

The MICHELIN Power CL is also available in up to 11 sizes from 280/80 – 18 TL to 420/80 – 30 TL. MICHELIN Power CL is one of five tire ranges that make up the Michelin Compact Line offer. The Compact Line tires are designed for use in construction, agriculture, landscaping, public works, and roads.
There are plenty of jcb 3cx for sale.

Scania Used Trucks

So you're looking for a used truck and not sure whether to approach Scania to enjoy one or more Scania used trucks or perhaps global brand Volvo for one of their used Volvo trucks? Or perhaps another brand altogether? Whilst Volvo has an impressive track record and has marketed itself into an instantly recognisable branding powerhouse, Scania used trucks is arguably a better place to begin. You can find a great selection of Scania used trucks through www.trucktradex.co.uk.

Scania, a company regarded as one of the world's leading truck and heavy goods vehicle transportation manufacturers have recently held a European competition to find Scania's Young European Truck Driver 2010 as part of the Young European Truck Driver's Championship. You could grab yourself a used truck from the competition itself thus securing yourself a little piece of competition history. The competition first originated in Europe in 2003 but this year holds a little difference in the calibre of entrants with the emergence of the competitions very first female contestant - Swiss dwelling Sandra Zeller, 24.

Always a winner to incorporate eco friendly issues alongside high performing drivers of either sex in equally impressive machinery. Built for longevity a Scania used truck doesn't have to be a compromise on durability, added comfort or style. Industrial and Marine engine maker Scania employs approximately 32,000 people and currently operates in and around 100 different countries so you could quite easily pick yourself up a Scania used truck with relative ease.

The majority of Scania's operations are conducted in Sweden whilst production takes place throughout Europe and South America.
The event held on October 8th saw eighteen of Europe's best young truck drivers emerge to compete with one another for the acclaimed title of Young European Truck Driver 2010 which is decided via a ream of different battles incorporating skill, dexterity and driving ability to determine who had the necessary skills to trounce the competition. Precision driving events typically attract 5,000 to 10,000 visitors to watch the eighteen contestants compete against each other in various runs which include defensive and fuel economy driving, cargo securing and pre driving check lists. Viewers who prefer to watch from afar can enjoy live updates via www.scania.com alongside continual feed from Twitter and Facebook.


“Everyone is welcome to experience the final and to participate in the many different activities we are organising around the competition area, next to our chassis workshop in Södertälje,” says Mikael Person, who is in charge of the Scania competition.

“This competition puts the spotlight on drivers, celebrates their professional skills and highlights their contributions to society. In this way, we want to raise the status of drivers and attract more young people into the profession,” Mr Person adds.

With an eco friendly message incorporated within the strands of the competition, the driver, according to Scania's values, is the single most important factor in an operating economy for the environment and also, for safety. Drivers who are capable and competent contribute to energy efficient transport, increased road safety and lower fuel emissions. Endorsed by the European Commission and the International Road Transport Union and enjoying sponsorship from major player Michelin, the final held in Sweden will also be backed by commercial giant Volkswagen Group, Sweden. Scania is also running similar competitions in Latin America, Africa and Asia.

Forkliftaction.com celebrates 10th anniversary of reporting on the fork lift trucks industry

The popular materials handling internet resource Forkliftaction.com has reached a milestone; it is a decade since it first launched. In the year 2000, the materials handling world was not necessarily au fait with the relatively newfangled nature of the internet, but Forkliftaction.com took a chance and launched, bringing the world of fork lift trucks into cyberspace. Ten years later , and the site is a global hub for the exchange of information about the materials handling industry, with more than 50,000 subscribers benefiting from the services it offers.

Michael Leu founded Forkliftaction.com, and is now the executive director, and he explained the motive behind its creation:

I wanted to connect people in the industry - from east to west and from factory to farm, to let people know what was happening and where to get the best deal, spread the word about workplace safety and let the people who design and fix the machines share their knowledge with each other through the forums.


After having the idea, the implementation required a leap of faith, as Leu describes:

I remember my colleague and I going to CeMat in early 2000, just before the launch, to gauge industry opinion about the venture. It was a very mixed reaction; many in the industry didn’t trust the new technology and couldn’t see how it could help their business.

Something that helped Leu's vision become realised was the change in attitudes towards the internet, and the rapid acceleration of its use, that occurred between 2000 and 2001. People began to see the internet as an integral part of their day. Leu had been part of the forklift industry for almost 15 years, and was familiar with the various magazine publications that pertained to the sector. What he believed the internet could do was maintain the quality of the news and analysis which the magazines offered, whilst at a stroke solving the problems of speed; the dissemination of news by magazine subscription was slow and clumsy compared to the possibilities of the internet.

I was well aware of the global nature of the materials handling industry, says Leu, and how hungry for industry news its members were. I also believed the site should alert dealers to new possibilities for products and spare parts and to provide manufacturers with information about new and innovative technology, alternative component suppliers and news of organisational and marketing strategies used around the globe.

One of the fundamental precepts of Forkliftaction.com is to provide an up-to-date news service, and one which is independent and objective. The purpose of Forkliftaction.com is to treat material handling stories with an even-handed impartiality, allowing the subscribers to make their own minds up on the issues which affect them. The site launched to a mere 50 subscribers, a number which has grown to 50,000 in the ten years that it has been operational, with 120 new subscribers every week. Initially, subscriptions tended to be from manufacturers and distributors of forklifts, who were able to use the service to keep abreast of what their competitors were up to. However the last few years have seen the actual users of forklifts begin to subscribe, and in fact they now outnumber the producers.

The independent nature of the news service is crucial to Forkliftaction.com, as it prides itself on being able to report on stories with no interference. One example is the site's reporting of the news that NACCO were consolidating sales and dealers within their global network, a story which NACCO denied, before eventually confirming. Other subjects addressed by the news team have been industry litigations and legal issues, sometimes involving the biggest names in the sector, as well as important coverage of workplace accidents and tragic deaths due to lack of proper safety training and supervision. In fact, Richard.E.Higgens, the director of the US Open Forklift Rodeo and Safety Expo, said:

Forkliftaction.com can take great satisfaction in knowing that somewhere, somehow you have undoubtedly saved lives by your consistent support in promoting forklift safety.


Forkliftaction.com also reports on the positive aspects of the industry, particularly the response of the materials handling industry to the various natural disasters which have plagued the first decade of the 21st Century. The site has reported on companies such as JCB, Raymond, Komatsu, Linde and Trelleborg, who have donated equipment, expertise, time and hard currency to the relief efforts in the aftermaths of the Tsunami in Asia, Hurricane Katrina in New Orleans, the raging bushfires in Australia, the earthquake in Haiti and the floods in Pakistan. Forkliftaction.com has also reported on the regular local charity work of firms such as Mitsubishi and Jungheinrich.


Aside from news updates, Forkliftaction.com also produces features, which are able to provide a more in-depth analysis of various salient issues within the materials handling market. The feature topics are chosen by recourse to subscribers opinions, and so are as topical and relevant as possible. The first ever feature was published in 2001, and concerned the nascent market for forklifts in China, and it was relatively small, at 550 words. The features now are nearer to 2000, and such is the reputation that Forkliftaction.com has built up, usually feature interviews with people who are absolutely key to the topic.

Forkliftaction.com works hard to remain at the forefront of the industry, with Howard Quick, the regional product manager for Linde North America, saying, if it is in Forkliftaction.com, the materials handling community is talking about it. Other industry luminaries who are regular readers include Tim Jamal, the vice-president of Jamco, who said that the site has become, the leading global news source for the materials handling industry, and Bernd Dolk, the sales manager for Raeder-Vogel, who said, with its worldwide coverage and readership, Forkliftaction.com is unique in distributing information on all aspects of materials handling to interested parties, manufacturers as well as end-users.

Terry Wickham from Keyroller cites another benefit of being a subscriber to an industry based community, saying, We were able to gain tremendous exposure for our many new products and ideas.

Michale Leu has a very clear philosophy, which he has brought to Forkliftaction.com. Customer loyalty, he says, is based on the quality of the service. We have customers who have advertised with us right from the start. Svetruck is one such company; they stay with us because Forkliftaction.com has formed strong bonds with them over the years and we offer them value and consistent results for their advertising. New customers are attracted to the website by the extensive range of services Forkliftaction.com offers.

Ann Hofmans is the site's general manager, and she agrees with Leu, observing that the site has always tried to grow in line with what its subscribers want:

Forklift businesses these days have to follow the buyer and respect the changing ways they purchase a forklift. They now do an enormous amount of research - online. The buyer wants to learn what’s on the market, what technology is available and where they can get it.

Forkliftaction.com is always evolving, always looking to improve its service, and Hofmans is keen to extol some of the changes which will be happening in the coming year, saying, Forkliftaction.com News will soon be available online with the ability to switch easily from one news story to another, between media releases and product features. There will be a mobile version of the newsletter for those subscribers who choose to receive it on their mobile phones and RSS feeds which can be used to feature Forkliftaction.com News on subscribers’ own websites. The new design of the newsletter, the improved structure and format of Forkliftaction’s news service will bring it in line with the newest internet usage by our members.

Leu's plans for the site's second decade are simple: to increase membership and visitors in all countries, through development of additional tools for users, regional news in all major economies and translation capabilities for non-English speaking countries.

There may also be an upgraded service for those who opt for a paid subscription, but that is still on the drawing board at present. It has been ten years of hard work, but also of success, and when asked if he would make the same choices again, Leu is gleefully unrepentant: Yes, indeed I would, as long as I was able to assemble such a talented and dedicated bunch of people to come with me!.