Terex CEO Disappointed By US Economic Stimulus Package
June 23 2009 - 6:16PM
Dow Jones News
The chief executive of construction equipment maker Terex Corp.
(TEX) said the U.S. economic stimulus package has done little to
improve the nation's crumbling public infrastructure.
Ronald DeFeo said he considers the upcoming renewal of the
federal transportation funding program as the best chance for a
providing sufficient money for infrastructure construction.
DeFeo said he supports U.S. Rep. Jim Oberstar's, D-Minn.,
proposal to reauthorize the transportation funding at $450 billion
over six years, about double the current level.
"It will be a real transformation in how we address U.S.
infrastructure," said DeFeo, during comments at Wachovia
Securities, Mid-Year Equity Conference, which was broadcast over
the Internet. "It will be a real interesting test of this country's
political will."
Westport, Conn.-based Terex and other equipment builders are
increasingly looking to federal transportation funding to help
drive sales of roadbuilding and construction machinery. The
collapse of residential and commercial construction activity in the
U.S. has been driving down demand for Terex's equipment, which
includes cranes and aerial platforms for workers. Terex's
first-quarter sales plunged by 45% from 2008.
DeFeo said the economic stimulus legislation enacted earlier
this year doesn't provide enough additional money for public
construction projects to boost Terex's sales. It's a complaint
echoed by several other executives of companies with exposure to
the construction sector.
"The U.S. stimulus package has been disappointing," he said.
Terex stock closed up 36 cents or 3.10% at $11.96.
-By Bob Tita, Dow Jones Newswires; 312-750-4129;
robert.tita@dowjones.com