Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Henry Kirn with UBS.
Henry Kirn – UBS
Hi.
Ron Defeo
Hi Henry.
Henry Kirn – UBS
Could you talk a little bit more about the restructuring in the construction business? What are you thinking about the various businesses within the segments, and when would you expect to make a decision on which businesses you may choose to either sell or shutter?
Ron Defeo
Let me start, and Tom, you can continue. I think the Construction team has been pretty much under siege most of this past year. The end markets, particularly given our concentration in Europe, which represents about 60% plus our total business has been down 70% to 80%. So sometimes it’s difficult to see the forest or the trees when you’re in the middle of those trees.
We do have some substantial differences between operations. Our compact equipment business has been quite challenged. That business is typically more oriented towards residential construction; however, we think we have a pretty strong line-up in that product category. We are working on a number of new product development initiatives, including a skid steered introduction in late 2010, and we expect to have a strong business portfolio and be competitive on that business.
The heavier equipment is a little bit more complicated for us. We have an excellent articulated truck; we’re introducing a brand new articulated truck this October or right now and in the 40-ton size class. It has been broadly and deeply tested. It has been stressed tested, and we think will be a highly competitive product.
Frankly we’ve been growing market share in these product categories, even though the markets are down probably 60% to 70% globally. So the real test for the truck business for us is how well they can get through this new product introduction, and I think that will be a telling aspect of this business, but frankly, we’re pretty strongly committed to the Tel truck business.
The Fuchs business for us which is a material handler business, has gone through tremendous change. For a while, the entire scrap handling business just dried up, but we have probably the number one or number two brand name in scrap handling, and so while this business is losing a substantial amount of money at this moment in time, we do see some really positive signs that scrap prices are improving, and while we don’t have a lot of orders in the backlog at this moment, and we still have a bunch of inventory, losses will remain pretty meaningful for a little while. We think by the middle of next year we’re going to see a turn in that business.
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