Jeffries’ analyst Stephen Volkmann in a recent note to clients wrote that under the new “fiscal cliff” legislation companies in 2013 are now allowed to write off as much as $500,000 in new asset purchases. The large amount comes as a surprise to many as the limit was expected to be reduced by $25,000 with the expiry of the Bush era tax cuts.
“Equipment purchasers will continue to be able to use the purchase of equipment as an offset to their overall tax burden. The result will be a continuation of the elevated prices for agriculture and construction used equipment,” Volkmann wrote.
The Manitowoc Company is a multi-industry, capital goods manufacturer with over 115 manufacturing, distribution, and service facilities in 25 countries. In 2011, Manitowoc’s revenues totaled $3.7 billion, with more than half of these revenues generated outside of the United States. Shares of the company have spiked 8 percent in the past week.
Terex manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, manufacturing, mining, shipping, transportation, refining, energy and utility industries. Net sales were $1,822.0 million in the third quarter of 2012, an increase of 1.0% from $1,803.6 million in the third quarter of 2011.