Terex Corp. (TEX) Chairman and Chief Executive Ronald DeFeo said Wednesday he intends to decide by early 2010 which of the company's construction equipment lines will be sold.

DeFeo said he's focused on lowering costs in recent months to determine whether some struggling product lines could be retained. But he acknowledged the company's presence in some markets may never be large enough to consistently generate profits.

Terex, which makes a variety of equipment, including hydraulic mining shovels, tower cranes and aerial work platforms, has struggled to compete in mainline construction equipment categories against larger rivals such as Caterpillar Inc. (CAT), CNH Global NV (CNH) and Deere & Co. (DE).

"We've never really demonstrated the ability to be meaningfully profitable in this business," DeFeo said during a JPMorgan investor conference in New York broadcast over the Internet. "I'm going to look at it by product type and make some decisions by early 2010."

Construction equipment amounted to 19% of Terex's sales in 2008. Much of its construction equipment is manufactured in Europe, leaving the company susceptible to unfavorable currency translations when the equipment is sold in the U.S.

DeFeo added that Terex's construction business is "probably not that attractive to anybody" unless it's connected to a company with large market presence elsewhere that is looking to expand into Europe. Industry analysts have speculated that Chinese equipment manufacturers would be interested in Terex's assets.

DeFeo said Terex will likely hold on to its compact construction equipment business and added that he's been satisfied with the performance of the company's mining equipment business.

"It's a good business, but it's not a great business," he said.

Connecticut-based Terex's has been an aggressive acquirer of equipment brands in the past as the company looked for market niches to dominate. But Terex's sales and profits have been hit hard by the collapse of the construction sector in the past year. Tighter credit conditions throughout the world choked off funding for construction projects, reducing demand for new equipment.

DeFeo noted that sales have been dismal even in the company's best-selling product lines, such as aerial work platforms and cranes.

In the second-quarter, Terex lost $77.6 million, or 78 cents a share, as sales fell 55% from a year ago. Terex moved to shore up its balance sheet in recent months by tripling its cash balance from the end of March to $939 million at the end of June and by renegotiating the terms for its loan agreements.

"We have the liquidity and a management team that is focused on generating cash," he said. "I think we can weather the existing storm and a few more."

Terex's stock was recently trading up 3.3% at $19.63 a share.

-By Bob Tita, Dow Jones Newswires; 312-750-4129; robert.tita@dowjones.com