(Reuters) - Terex Corp (TEX.N) estimated a current-quarter profit below market expectations and cut its full-year earnings outlook, joining a list of heavy equipment makers that foresee a tough year ahead due to weak mining and construction markets.
Terex shares fell 15 percent in early morning trading.
Excluding one-time items, Terex expects earnings of 50 to 60 cents per share for the quarter ending June, far below the average analyst forecast of 82 cents, according to Thomson Reuters I/B/E/S.
The company said it was encountering softness in its construction, material handling and port solutions businesses.
“Fundamentally, North America continues to improve, but now at a slower pace, while Europe remains challenging overall, and the markets in the rest of the world are mixed,” Terex Chief Executive Ron DeFeo said in a statement.
Construction, material handling and port solutions together accounted for about 43 percent of Terex’s sales in 2012.
Rival Caterpillar Inc (CAT.N) posted disappointing quarterly results in April and also cut its 2013 profit forecast to reflect weakness in mining and construction.
Terex said it now expects full-year earnings of $1.90 to $2.10 per share, compared with the $2.40 to $2.70 it had forecast earlier.
The company will report second-quarter results in late July.
Shares of Terex, which have fallen 8 percent in the last three months, were trading at $27.10 on the New York Stock Exchange.
Reporting by Bijoy Koyitty in Bangalore; Editing by Sreejiraj Eluvangal