AGCO Corporation (AGCO), Manitowoc Company, Inc. (MTW): Three Machinery Companies that You Must Buy as the Economy Improves

Strong segment growth and restructuring plan

Terex Corporation (NYSE:TEX) is present in more than 170 countries with manufacturing facilities in the U.S., Asia, Australia and Europe. It has a dominant position in North American market due to the strong equipment rental channel demand in its Aerial Work Platform (AWP) segment. The company provides AWP equipment like scissor lifts and telescopic booms on a rental basis. The equipment rental market is growing because of consumer shifts toward renting equipment rather than owning it.

The revenue from the AWP segment increased 21% year-over-year in the first quarter of 2013. Furthermore, it is expected that this segment’s revenue will grow 15% to 25%, with sales of $2 billion to $2.2 billion this year.

The Material Handling and Port Solutions (MHPS) segment of Terex Corporation (NYSE:TEX) is not performing well, due primarily to weakness in the Europe market as well as in other parts of the world. The company is planning to restructure its MHPS segment, resulting in the closure of production in Spain. Due to this restructuring plan, Terex will incur a cost of approximately $30 million to $50 million in the MHPS segment in the next quarter.

Conclusions

Terex’s AWP segment’s outstanding performance and its restructuring plans in the MHPS segment will provide better prospects for its future growth.

Manitowoc Company, Inc. (NYSE:MTW)’s increasing crane orders in North America and its joint venture with Shantui to increase its footprint will boost the company’s revenue.

The Jackson manufacturing plant’s expansion due to the growing demand and GSI’s contributions provide a positive outlook for AGCO Corporation (NYSE:AGCO)’s growth.

I recommend buying all these stocks.

The article 3 Machinery Companies that You Must Buy as the Economy Improves originally appeared on Fool.com and is written by Madhu Dube.

Madhu Dube has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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