Market Overview

Terex Announces First Quarter 2018 Results

Share:
  • Q1 Earnings per Share $0.59, $0.55 as adjusted
  • Increased sales 25% and backlog 54%, growth in every segment
  • Disciplined capital allocation results in 5 million shares
    repurchased for $205 million
  • Increasing 2018 full year EPS guidance from $2.35 - $2.65 to $2.70
    - $3.00

Terex Corporation (NYSE:TEX) today announced first quarter 2018 income
from continuing operations of $47.6 million, or $0.59 per share, on net
sales of $1.3 billion. In the first quarter of 2017, the reported income
from continuing operations was $(60.3) million, or $(0.57) per share, on
net sales of $1.0 billion. Income from continuing operations, as
adjusted, for the first quarter of 2018 was $44.6 million, or $0.55 per
share. This compares to income from continuing operations, as adjusted,
of $5.5 million or $0.05 per share in the first quarter of 2017. The
Glossary at the end of this press release contains further details
regarding these non-GAAP measures.

"Terex significantly improved its first quarter earnings per share
compared to last year," stated John L. Garrison, Terex President and
CEO. "This strong financial performance reflects the improvements made
to our operations and capital structure, and broad-based improvements in
our global markets."

"Aerial Work Platforms (AWP) and Materials Processing (MP) are off to a
great start," Mr. Garrison continued. "Our Cranes segment improved
compared to the prior year, but performed below our expectations in the
quarter."

"We continue to invest in our Execute to Win business system, which
remains focused on enhancing our capabilities in Commercial Excellence,
Lifecycle Solutions and Strategic Sourcing" commented Mr. Garrison. "We
are seeing benefits from Commercial Excellence in our performance, and
expect to start to realize benefits from Strategic Sourcing in the
second half of 2018."

"We remain committed to our Disciplined Capital Allocation Strategy.
During the quarter we repurchased approximately five million shares of
Terex stock for $205 million through our previously announced program,"
said Mr. Garrison.

"We are increasing our full year 2018 adjusted EPS guidance from $2.35
to $2.65 to $2.70 to $3.00," continued Mr. Garrison. "This improvement
reflects our first quarter results and capital market actions, and our
expectation for continued growth and operational improvements over the
balance of 2018."

Non-GAAP Measures and Other Items

Results of operations reflect continuing operations. All per share
amounts are on a fully diluted basis. A comprehensive review of the
quarterly financial performance is contained in the presentation that
will accompany the Company's earnings conference call.

In this press release, Terex refers to various GAAP (U.S. generally
accepted accounting principles) and non-GAAP financial measures. These
non-GAAP measures may not be comparable to similarly titled measures
being disclosed by other companies. Terex believes that this non-GAAP
information is useful to understanding its operating results and the
ongoing performance of its underlying businesses.

The Company provides guidance on a non-GAAP basis as the Company cannot
predict with a reasonable degree of certainty the timing and magnitude
of future charges that would be included in the reported GAAP results.

The Glossary at the end of this press release contains further details
about this subject.

Conference call

The Company has scheduled a one hour conference call to review the
financial results on Wednesday, May 2, 2018 at 8:30 a.m. ET. John L.
Garrison, President and CEO, will host the call. A simultaneous webcast
of this call will be available from the Investor Relations section of www.terex.com,
under Latest Events & Presentations. Participants are encouraged to
access the call 10 minutes prior to the starting time. The call will
also be archived in the "Investor Relations" section of the Company's
website in the Event Archive.

Forward-Looking Statements

This press release contains forward-looking information regarding
future events or the Company's future financial performance based on the
current expectations of Terex Corporation.
In addition, when
included in this press release, the words "may," "expects," "intends,"
"anticipates," "plans," "projects," "estimates" and the negatives
thereof and analogous or similar expressions are intended to identify
forward-looking statements.
However, the absence of these words
does not mean that the statement is not forward-looking.
The
Company has based these forward-looking statements on current
expectations and projections about future events.
These
statements are not guarantees of future performance.

Because forward-looking statements involve risks and uncertainties,
actual results could differ materially.
Such risks and
uncertainties, many of which are beyond the control of Terex, include
among others: Our business is cyclical and weak general economic
conditions affect the sales of our products and financial results; the
need to comply with restrictive covenants contained in our debt
agreements; our ability to generate sufficient cash flow to service our
debt obligations and operate our business; our ability to access the
capital markets to raise funds and provide liquidity; our business is
sensitive to government spending; our business is highly competitive and
is affected by our cost structure, pricing, product initiatives and
other actions taken by competitors; our retention of key management
personnel; the financial condition of suppliers and customers, and their
continued access to capital; our providing financing and credit support
for some of our customers; we may experience losses in excess of
recorded reserves; we are dependent upon third-party suppliers, making
us vulnerable to supply shortages and price increases; the imposition of
tariffs and related actions on trade by the U.S. and foreign
governments; our business is global and subject to changes in exchange
rates between currencies, commodity price changes, regional economic
conditions and trade restrictions; our operations are subject to a
number of potential risks that arise from operating a multinational
business, including compliance with changing regulatory environments,
the Foreign Corrupt Practices Act and other similar laws and political
instability; a material disruption to one of our significant facilities;
possible work stoppages and other labor matters; compliance with
changing laws and regulations, particularly environmental and tax laws
and regulations; litigation, product liability claims, intellectual
property claims, class action lawsuits and other liabilities; our
ability to comply with an injunction and related obligations imposed by
the United States Securities and Exchange Commission ("SEC"); disruption
or breach in our information technology systems; our ability to
successfully implement our Execute to Win strategy; and other factors,
risks and uncertainties that are more specifically set forth in our
public filings with the SEC.

Actual events or the actual future results of Terex may differ
materially from any forward-looking statement due to these and other
risks, uncertainties and significant factors.
The forward-looking
statements speak only as of the date of this release.
Terex
expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statement included in
this release to reflect any changes in expectations with regard thereto
or any changes in events, conditions, or circumstances on which any such
statement is based.

About Terex

Terex Corporation is a global manufacturer of lifting and material
processing products and services that deliver lifecycle solutions to
maximize customer return on investment.
The company reports in
three business segments: Aerial Work Platforms, Cranes, and Materials
Processing.
Terex delivers lifecycle solutions to a broad range
of industries, including the construction, infrastructure,
manufacturing, shipping, transportation, refining, energy, utility,
quarrying and mining industries.
Terex offers financial products
and services to assist in the acquisition of Terex equipment through
Terex Financial Services.
Terex uses its website (www.terex.com)
and its Facebook page (
www.facebook.com/TerexCorporation)
to make information available to its investors and the market.

 
TEREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)

(in millions, except per share data)

 
 

Three Months Ended
March 31,

2018   2017
Net sales $ 1,260.9 $ 1,006.9
Cost of goods sold   (1,030.0 )   (854.6 )
Gross profit 230.9 152.3
Selling, general and administrative expenses   (159.6 )   (157.0 )
Income (loss) from operations 71.3 (4.7 )
Other income (expense)
Interest income 3.4 1.8
Interest expense (16.0 ) (21.4 )
Loss on early extinguishment of debt (0.7 ) (45.4 )
Other income (expense) – net   1.0     (18.9 )
Income (loss) from continuing operations before income taxes 59.0 (88.6 )
(Provision for) benefit from income taxes   (11.4 )   28.3  
Income (loss) from continuing operations 47.6 (60.3 )
Gain (loss) on disposition of discontinued operations- net of tax   2.7     55.7  
Net income (loss) $ 50.3   $ (4.6 )
Basic Earnings (Loss) per Share
Income (loss) from continuing operations $ 0.60 $ (0.57 )
Gain (loss) on disposition of discontinued operations – net of tax  
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