Terex Corp. Overview

Terex Corp.

Introduction

Terex Corp. is a global and multinational company based in the United States. Its headquarters is situated in the heart of Norwalk, Connecticut. Terex Corp. a global manufacturer of aerial work and materials processing machinery. The company builds, designs, and supports products used in maintenance, construction, manufacturing, recycling, material, and mineral management applications. The company is ranked 358th on the Fortune 500 list, indicating it to be one of the largest corporations in the entire United States. Terex Corp. works tirelessly to ensure environmental sustainability, as such, all its product offerings help its customers to reduce carbon footprints and environmental impacts, by making available to them products and services, which include but are not limited to hybrid and electric offerings which help deliver quite and emission-free performance, products that sustain renewable energy as well as products that aid and support the recovery and recycling of useful materials from different types of waste. In its entirety, Terex Corporation’s products are manufactured across North America, Australia, Europe, as well as Asia, and are sold worldwide. Terex Corp. strives to engage customers in every stage of the product life circle, ranging from the initial specification to the financing stage, and to service support.      

This article will thoroughly address every necessary thing there is to know about the company which includes, but is not limited to its historical snapshot, its mode of operation and management, its brands, its pros and cons, et cetera. The objective of this article is, however not to overstate or understate the major aspects of the company but to present these aspects in a seamless and an easy to understand way. 

Key Facts 

Years in Existence: Terex Corp. was founded in the year 1933, approximately 89 years hitherto  

Employee Strength: Terex Corp. has over 8, 600 employees in its workforce.  

Industry Type: Manufacturing 

Market Reach: Terex Corporation’s products are manufactured across North America, Australia, Europe, as well as Asia, and are sold worldwide. 

Efficiency Ranking: Terex Corporation is listed on the Fortune 500, indicating it to be one of the largest corporations in the entire United States. 

Trading Platform: Terex Corporation trades on the New York Stock Exchange (NYSE) market, under the ticker name, TEX  

Historical Snapshot 

The genesis of the Terex Corporation is dated back to 1933, the year it was founded as the Euclid Company by entrepreneur, George A. Amington whose primary operation was to build trucks. However, over the years, Terex Corporation grew and diversified, typically through a series of acquisitions, and as a result, the company has gone through a different changes of cognomens. The name, Terex Corporation, was, however, coined from the Latin word “Terra” which implies ‘earth” and “rex” which implies “king” in the year 1970, by the then owner of General Motors. 

In the year 1991, Terex Corporation witnessed its first listing on the New York Stock Exchange (NYSE) market and trades under the ticker name (NYSE: TEX). This section will, however, address the company’s transition, dating back from its inception date, up to now. 

1930s – 1980s 

In the year 1934, Euclid, the then Terex Corporation launched the first world’s off-road hauler. The hauler is a rear-dump 1z Trac-Truk. Throughout the 1940s, Euclid grew rapidly, hence becoming a major and significant supplier t vehicles during the era of World War II, and therefore, the company played a major role in the war effort. 

In the year 1953, General Motors bought Euclid and builds its “Euclid Division,” which extends the division to include more than 50% of all United States off-highway dump truck sales. Throughout the 1960s, General Motors continues to expand, produce, develop, and sell trucks and construction equipment which are not covered by Euclid antitrust ruling. In 1970, G.M established the name, “Terex” a new brand to claim its former Euclid products. Thus, the Terex Division now focuses on producing and manufacturing front-end loaders, scrapers, and crawlers. 

In 1961, Terex was sold by General Motors to a large industrial manufacturer operating under the name, IBH Holdings, located in Germany. However, the advent of economic recession led to the IBH declaration of bankruptcy and closure of the company in the year 1983, thus, leading to the reversal of the Terex ownership to General Motors. In the year 1986, Terex was bought in two transactions made by Northwest Engineering, a company operating under the supervision of an American entrepreneur, Randolph W. Lenz.  In the year 1988, the company’s name, Terex, was rebranded to Terex Corporation. And following the change of name, Terex Corporation bought several companies in a bid to diversify into a new market of heavy manufacturing within three years and the move nearly tripled the company’s size 

1990s – 2010 

In the ye4ar 1997, Terex Corporation bought a utility service company operating under the name, Simon-Telelect. The acquisition led to the foundation of Terex Corporation’s utilities division. In the year 1999, Terex Corporation acquires several businesses which are part of its today’s portfolio. These businesses include but are not limited to Powerscren and Finlay based in Northern Ireland, Terex Washing Systems, Simplicity Engineering, in Durand, Michigan, Cedarpids, in Iowa, and Franna in Australia. Through the year the 2000s, Terex Corporation extends its operation to India, and in 2003,  Terex Corporation opens its first branch in India., In 2008, Terex Corporation forms TIRC which is a global R&D and engineering center in Bangalore, whose primary objective is to provide engineering support to all engineering-related segments across Terex. In the year 2009, Terex Corporation opens a manufacturing plant in Hosur, whose operation is to process materials. And throughout 2001 up to 2009, Terex Corporation bought businesses that is part of its today’s portfolio. These businesses include but are not limited to Canica and Jaques in Australia, Genie Industries in Redmond, Washington, Fuchs in Germany, and Advance Mixer, in Fort Wayne, Indiana, amongst others.     

2011 – 2021 

In the year 2011, Terex Corporation launched a manufacturing facility in the heart of Changzhou, China. Its primary objective is to serve as the parts distribution, product development, and service center for AWP (Aerial Work Platforms)  in China. The plant, is, however, part of the AWP’s global outline strategy to produce products for both regional and local markets. In the year 2012, Terex Corporation bought Recom and forms part of the company’s today Terex Cranes businesses in Italy. In the year 2015, Terex Corporation bought Continental Biomass Industries Inc., (CBI). In the year 2015, John Gamson was appointed as the company’s president and CEO, as well as a member of the Board of Directors of Terex Corporation. And in the year 2016, Terex Corporation launched a program tagged with the name “Investor Day’ in a bid to introduce its new senior group of shareholders and to present a strategic plan to move the company to becoming a vast and high-performing operating corporation. The strategic plan, however, has three focal parts which include: Focus, Simplify, and Execute to Win. In the year 2019, Terex Corporation sold its Demag Mobile Cranes segment to Tadano Ltd., as well as its certain mobile cranes assets in Oklahoma to Custom Truck, Inc. In the year, 2020, Terex Corporation launched its 17th customer-facing brand, tagged under the name, ProStack, a mobile transporting system for bulk handling equipment and solutions for ports and terminals. 

Financials 

Revenue: 3.89 Billion USD 

Operating Income: 264 Million USD 

Net Income: 221 Million USD 

Total Assets: 2.86 Billion USD 

Total Equity: 1.11 Billion USD 

Business Segments 

In its entirety, Terex Corporation focuses on two business segments, which are Aerial Work Platforms (AWP) and Materials Processing (MP). This section will, however, address the two segments in brief for the sake of brevity. 

The Aerial Work Platforms (AWP) Segment: 

Offers majority of its sales to equipment rental firms 

This segment has industry-leading global brands with a renowned reputation for quality and innovation and customer support. 

Offers services to industries including infrastructure, construction, and maintenance.  

It leverages its Terex Utility and Genie products to lift materials safely to height 

The Materials Processing Segment: 

 This segment uses its leading portfolio of specialty equipment brands to serve its end markets 

It sells through a specialized dealer chain and rental companies 

It offers services to recycling, infrastructure, construction, and maintenance industries. 

Brands 

TEREX  ADVANCE 

TEREX FINLAY 

FUCHS 

TEREX BID-WELL 

SIMPLICITY 

CEDARAPIDS 

CANCA 

TEREX MPS 

TEREX JAQUES 

PROSTACKS 

FRANNA 

MDS 

POWERSCREEN 

GENIE 

… amongst others. 

Pros and Cons 

According to a review on Glassdoor, below are the pros and cons of  Terex Corporation as reviewed by its employees. 

Pros 

Freedom of work schedule 

Competitive remuneration 

Tool allowance 

Amazing Corporation Social Responsibility initiatives 

There is a Work/Life Balance 

Cons 

Lack of Feedback 

Slow pace of promotion 

Activities outside workplace

Conclusion 

In a nutshell, although Terex Corporation has been in the manufacturing industry for quite a number of years like its counterparts, nonetheless, the milestones and achievements of this company as proven the company to be an industrial colossus, and on the off chance that it keeps its pace, it would remain a leader in the manufacturing industry and by extension, remain an example to other aspiring companies. That being said, I trust you are able to absorb all the relevant information presented in this piece and that it would aid your rationality in whatever decision you would have to make as regards the Fortune 500 company, Terex Corporation